THE Financial Credit Authority (FCA) has confirmed its new rules for the consumer credit industry.

These will affect firms that offer payday or personal loans, overdrafts, credit cards and firms that help people manage their debts.

The FCA will take over the regulation of such firms from the Office of Fair Trading (OFT) on April 1 and ……and no, this is not an April Fool. At Citizens Advice we believe these changes are long overdue and we applaud their introduction!

Martin Wheatley, the FCA’S chief executive said: “Millions of consumers access some form of credit every day, from paying for everyday goods by credit to taking a payday loan.

“We want to be sure that the market works well when people need it, whether it’s for one day, one month or longer. Our new rules will help us protect consumers and give us strong new powers to tackle any firm found to be overstepping the line”

will take a tough approach to consumer credit with stronger powers to clamp down on poor practice, including the power to close down a firm and order compensation to be paid to customers who are affected.

The biggest changes come for payday lenders and debt management companies, something that Citizens Advice have been campaigning for at the highest level. They include:

• A limit of two loan roll-overs.

• Restricting to two the number of times a firm can seek repayment using a continuous payment authority.

• A requirement to give all clients information on free debt advice.

• The requirement that debt management firms pass on more money to creditors from day one of a debt management plan and to protect clients money.

The new rules for payday lenders will come into force on July 1 and debt management companies on April 1.

For more information and free impartial advice on any issue, contact Wyre Forest CAB on 0844 4111 3039(landline) or 0300 330 0650(mobile). Face to Face Appointments: 01562 60194