News
FLA response to OFT High-Cost Credit Review
Responding to the OFT Review of High-Cost Credit, Fiona Hoyle, Head of Consumer Finance at the Finance & Leasing Association said,
“This report shows that high-cost credit providers meet an important need for many people who cannot access credit elsewhere, that prices reflect market realities, and that complaint levels are low. The OFT also recognises that lenders in these markets show forbearance to customers in difficulties and do not penalise borrowers for late or missed payments.
“We agree with the OFT that price controls would not be appropriate because they would have adverse unintended consequences for consumers, including for the cost and availability of credit. We hope that the Government will take careful note of these arguments against price capping when it considers the credit and store card markets. We note the OFT’s comments about consumer information and we look forward to discussing with them and consumer groups ways to provide additional information to borrowers in these markets.”
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Note to editors:
The FLA is the leading trade association for the asset, consumer and motor finance sectors in the UK, covering secured and unsecured loans and credit and store card providers. In 2009, FLA members provided £53 billion to the consumer finance sector, representing around 30% of all unsecured lending in the UK.
For further media information, please contact:
Russell Hamblin-Boone, FLA
T: 020 7420 9656 E: russell.hamblin-boone@fla.org.uk M: 07810 374110
Helen Saxon, FLA
T: 020 7420 9664 E: helen.saxon@fla.org.uk M: 07918 766 993