About Our Company
Building a Brighter financial Future & Good Support
Since beginning to regulate the market in 2014, the FCA has implemented a number of regulations and price caps to ensure that the market is suitable with costs that are fair and beneﬁcial for both the consumer and the lenders and pay day loans. The implementation of their regulations has affected the payday loan industry between 2015 to 2019 During this time, the FCA are continually monitoring the current market to guarantee that lending is fairer and consumers are not overpaying, as a result, helping to fulﬁl their initial aims making the market beneﬁcial for all those involved. Since the FCA regulations payday loan lenders numbers have dropped dramatically. Uk Ethical Loans looks at the secret of survival and the reasons why so many payday loan lenders have left the market. Previously, lenders were earning up to £39 per month on every £100 borrowed pre-regulations Since the FCA Regulations, 6 in 10 instore payday lenders shut down One big impact of the FCA’s regulations has been the size of the payday loan market in the UK. There are now far fewer payday loan lenders operating than previously, affecting competition and availability. When the Financial Conduct Authority (FCA) proposed their regulations, they knew that many payday loan lenders would quit the market. However, they did not want to cancel the supply of payday loans altogether, so they had to choose a level of cap that would allow a viable payday loan market to continue. Their analysis at the time indicated that potentially, only a few ﬁrms would continue to survive. They did state, however, that this was without taking any changes into account. In their 2013 report, the OFT estimated that around half of payday lenders’ revenues came from fees and interests added on to defaulted loans. Borrowers who couldn’t repay featured signiﬁcantly in ﬁrms’ business models. This was something that the FCA was determined to change.