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FCA urges Govt action on soaring consumer debt

Andrew Bailey BBA Conference 2012 480
FCA chief Andrew Bailey

FCA chief executive Andrew Bailey has urged the Government to take action on consumer credit as personal loans soar while wages fall.

Bailey told The Guardian consumer credit is at the centre of the regulator’s agenda this year.

UK households have amassed £200bn in unsecured debt and consumer credit is rising at a rate of just under 10 per cent a year, while inflation has seen real wages fall 0.4 per cent.

Bailey says he has been visiting debt charities across the UK where he has seen many people facing difficulties with frontline debt such as council tax and utility bill arrears.

Bailey adds that the gig economy has prompted many workers to access credit to smooth over their income.

“It needs government involvement,” Bailey says.

The FCA is currently conducting a review into the car loan market and also working with charities and other industry bodies to discuss the state of the rent-to-own market, which is used for buying household items like fridges and washing machines.

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Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. Covering ones arse then before brexit ……

    The then regulator missed just about everything before the credit crunch

    Don’t worry Andrew, the regulator is expert at being so far behind, and we don’t expect things to change anytime soon, if closing stable doors was an Olympic sport you would be the great Eddie “the eagle” you look the part but in reality you are …. useless.

  2. Any actual suggestions, Mr Bailey? Such as a cap on unsecured borrowing, say 3 or no more than 4 times net monthly income?

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