Watchdog hits payday lenders

 
Tim Wallace
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PAYDAY lenders are failing customers in arrears, the City watchdog warned yesterday, telling the firms to clean up their act.

The Financial Conduct Authority (FCA) took over regulating the sector in April 2014, and is reviewing firms’ practices.

Regulators say they have found evidence that firms have given unaffordable loans, then offered inappropriate repayment plans.

Bad behaviour has led to “poor outcomes for many customers and, in some cases, serious detriment and financial loss”, the FCA said.