Under new Financial Conduct Authority (FCA) rules, British payday lenders will have their ability to take money from borrowers’ accounts limited, according to an FCA press release.
The FCA serves as a watchdog for U.K. consumers, regulating credit and keeping tabs on payday lenders. It plans to use a Continuous Payment Authority (CPA) to keep the number of times a lender can take money from a borrower’s account to two, and the number of times a loan can be rolled over to two as well. Every borrow whose loan rolls over will be told where they can get debt advice for free.
For more on the FCA’s new U.K. regulation, click here.
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