PARLIAMENTARY WRITTEN QUESTION
(4 March 2025)

To ask the Chancellor of the Exchequer, if she will take steps to regulate the level of interest rates offered by loan companies on daytime television; and what steps she is taking to protect vulnerable consumers from high-cost credit.

Asked by:
Katie White (Labour)

Lenders offering high-cost credit are regulated by the Financial Conduct Authority (FCA). This oversight ensures that lending practices are fair and that consumers are protected.

In 2013 the Government placed a duty on the FCA to implement a price cap for high-cost short-term credit products. The price cap came into force in 2015 and ensures that consumers using these products will never repay more than 100% of the principal in interest, fees, and other charges.

Lenders are also required to follow the FCA’s rules on promotions and adverts, where non-compliance could lead to fines. The FCA requires that all adverts and other promotions must be clear, fair, and not misleading.

Answered by:
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