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Brokers dismiss ‘toothless’ payday lender supervisory body


Brokers have slammed the new independent supervisory body for payday lenders as “toothless” as it has no power to revoke firms’ consumer credit licences.

The Consumer Finance Association has established an independent body, the Short-term Lending Compliance Board, to oversee payday lenders. It has appointed former Banking Code Standards Board chief executive Seymour Fortescue as chairman.

The SLCB will have the power to sanction lenders for non-compliance, including public naming and shaming, however, it will only supervise lenders that have voluntarily subscribed to the CFA and its code of practice. The SLCB will have the power to expel firms from the CFA, which may result in a referral to the regulator.

Your Mortgage Decisions director Martin Wade says: “Unless this body can actually stop firms from trading it is absolutely toothless. If it expels a firm and that business can keep its consumer credit licence and carry on practicing, it clearly does not have the power neccessary to stop bad practice.”

Trinity Financial product and communications director Aaron Strutt says: “People are crying out for regulation of this sector at the moment but this is not it.”


Friends Life corporate sales hit as rivals slash auto-enrolment prices

Resolution chief executive Andy Briggs says Friends Life’s corporate business suffered during 2012 as rivals slashed prices to “unprofitable” levels in order to win automatic enrolment business. Last week Resolution, the parent company of Friends Life, reported an 18 per cent drop in UK sales in the first quarter, from £173m last year to £142m […]

Trustees urged to consider affordability of pension deficit repayments

The Pensions Regulator wants trustees of defined benefit schemes to consider the impact setting high deficit repayment contributions could have on the financial strength of the sponsoring employer. Trustees of DB schemes with a funding gap are required to set annual employer contributions designed to repair the deficit over a set period of time. TPR […]

Tony Wickenden: GAAR guidance indicates when HMRC thinks it should apply

As I have made clear in my last two articles on the subject, HMRC has issued the guidance to the general anti-abuse rule that has been approved by the Advisory Panel with effect from 15 April 2013.  Of great interest to tax and financial planners should be Part D which contains a wide range of […]

Embrace simplicity!

By Fiona Holmes, proposition communications manager When I first took out critical illness cover, I was overwhelmed. It wasn’t just the form filling, it was finding out about the sheer number of illnesses I was covered for. Did it give me peace of mind that I was covered for neuromyelitis optica or systematic lupus erythematosus? […]


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