Providers of no credit check short term loans have struck back against the waves of negative publicity it has had to endure lately in an effort to avoid being more tightly regulated, instant short term loans experts recently reported.
The Finance & Leasing Association, an industry body which counts many short term loan providers amongst its membership, announced it will be releasing a newly revised and expanded code of practice this coming week. However, the new code, weighing in at a hefty 75 pages, is not expected to result in the avoidance of tighter regulations, as both the Department for Business, Innovation, and Skills and the Office of Fair Trading are reviewing the provision of short-term credit, and this past Friday, Financial Secretary Mark Hoban remarked that the nascent industry watchdog, the Financial Conduct Authority, will be better positioned to protect consumers who take out instant short term loans or other forms of short term credit.
In the meantime, the new FLA code provisions include preventing borrowers from rolling their short term loans any more than three times, and will also ban store card sales commissions as well. FLA spokeswoman, Fiona Hoyle, said that the industry body seeks to set the self-regulation standard for consumer credit, but the new code does not apply to any lenders that are not a member of the FLA – and many lenders do not have membership.
Missing from the new code provisions is a cap on interest rates, which is one of the main issues lender critics have been demanding, among other measures.