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FCA shuts out 19,335 companies offering pay day loans

The Financial Conduct Authority (FCA) has published a list of 19,335 companies offering pay day loans that have failed to register for interim permission to offer consumer credit.

The FCA is targeting pay day lenders as part of its focus on the consumer credit market, which also includes automotive retailers lending to customers for car finance.

Consumers can use the FCA website to search for companies which are registered with the FCA.

The FCA has approached nine companies in the automotive industry in its first 15 days of taking responsibility for consumer finance.

According to the statistics from the FCA 49,405 businesses did make the April 1 deadline to register for interim permission.

Regulation of the consumer credit industry passed to the FCA from the Office of Fair Trading (OFT) on April 1, 2014.

Franchised dealers must have registered with the FCA for interim permission in order to legally continue offering motor finance to their customers after that date.

Dealers can still apply for permission, but will not be able to carry out any credit-related regulated activities until their application is approved, which could take up to six months.

The process for full authorisation for the consumer credit industry will start in September.

Read AM's guide to the FCA consumer credit regulation.

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  • Alex Thomson - 21/05/2014 13:03

    Surely there are NOT 49405 pay day lenders. This figure is the number of firms now involved with the FCA, some 29000 of whom have Interim Permission awaiting /applying for authorisation over the next 2 years. I think you have misled the readership and should consider a correction.

    • tomseymour - 21/05/2014 13:05

      @Alex Thomson - Please see correction.

  • Alex Thomson - 21/05/2014 13:09

    Thank you for that swift correction

  • Russell Hamblin-Boone - 21/05/2014 14:14

    The FCA has responsibility for all forms of consumer credit and any firms providing credit need to have the appropriate permission. There are not 19,000 payday lenders operating in the UK market (the latest research from the Competition and Markets Authority suggests there are just 90 lenders offering payday loans in the UK today) and I think you meant to say that were 19,000 firms offering credit chose not to register for a credit licence. The 19,000 firms you refer to provide all forms of credit, from credit cards, mail order to store credit and motor finance.