Consultation item

Proposals for a price cap on high-cost short-term credit (Financial Conduct Authority) (extent = UK) - TSI response - August 2014

TSI response (PDF 170KB). TSI supports the introduction of a cap on the basis of the recent FCA research indicating that (1) it will lower extortionate costs for borrowers; (2) it will prevent borrowing costs escalating beyond a fixed level; and (3) it will raise the entry level for acceptance by the lender of borrowers according to their means and ability to pay. TSI also recommends a cap on turnarounds between loans.