Maintaining the supply of credit is vital

Commenting on the first day of theFinancial Conduct Authority’s (FCA) new regulatory regime for consumer credit, Stephen Sklaroff, Director General of the Finance & Leasing Association (FLA), said: “The credit industry has worked very hard to meet what the regulator acknowledges to be a very challenging timetable. Many of the 50,000 credit providers which now fall under the FCA’s remit will be unfamiliar with Principles-based regulation and the complexities of a rulebook unveiled only four weeks ago.

“They will need time to adjust their processes. “In the meantime, the FCA must work closely with the industry to maintain the supply of responsibly-provided credit to UK consumers and businesses.”

Note to editors

1. FLA members in the consumer finance sector include banks, credit card providers, store card providers, second-charge mortgage lenders, motor finance providers, personal loan and short-term credit lenders, and instalment credit providers. 2. In 2013 FLA members provided £88.3 billion of new finance to UK businesses and households. £65.9 billion of this was in the form of consumer credit representing almost a third of all unsecured lending in the UK.