- Ensuring lenders only accepted borrowers who could afford to pay the loan back
- Ensuring borrowers knew the full costs and risks involved
- A cap on fees and interest
If you find yourself in temporary need of additional finance, short term loans can be a great help. They’re a particularly popular option for students, and those who have experienced an unexpected financial issue which has left them short until their next payday. However, before rushing out and applying for a short-term loan, it helps to know how they are governed and protected.Are short term lenders regulated?Not too long ago, the short-term loans industry was largely unregulated. It wasn’t until the Financial Conduct Authority (FCA) took over in 2014 that the industry started to improve. The FCA brought in changes which came into force in 2015, to protect borrowers and put a stop to illegal, unlicensed lenders.The main changes which came into force included:
How Are Short Term Loans Governed and Protected?