British regulator proposes tougher rules for payday lenders
LONDON Oct 3 (Reuters) - Britain's financial regulator on Thursday warned the payday lending industry it was due to impose much tougher rules on how it operated, including requiring better checks on borrowers and limits to how many times a loan could be rolled over.
The Financial Conduct Authority was setting out its plans for how it will regulate the industry once it takes over responsibility in April 2014.
It will now require lenders to provide mandatory affordability checks on borrowers, limit the number of loan roll-overs to two and restrict to two the number of times a continuous payment authority can be used.
"Today I'm putting payday lenders on notice: tougher regulation is coming and I expect them all to make changes so that consumers get a fair outcome," FCA Chief Executive Martin Wheatley said. "The clock is ticking."
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