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Responsible for issuing over 3 million loans last year in the form of payday loans, rent-to-own, catalogue buying, motor finance and more. These types of financial products are often consumed by some of the most vulnerable in society and the regulator has raised concerns about high interest rates and default charges for missed repayments.

The Financial Conduct Authority took over the regulation of the finance and insurance industry in 2014, replacing the Office of Fair Trading, and starting officially on 1st January 2015.

Initial introductions to the payday loans industry included a daily price cap, a limit of default charges and tougher authorisation requirement. This has resulted in a noticeable decrease in the number of loans issues, from around 1.2 million in 2013 to 780,00 in 2017 (Source: My Jar) and reports show fewer complaints and greater consumer confidence in the sector. The FCA's recent review stated that it is happy with the regulation of payday loans and will not review this again until 2020.

However, the FCA stated that it has a lot more work to do in other high cost industries. Notably, the cost of unauthorised overdrafts is significantly higher than the payday loans which are often criticised. Unauthorised overdrafts can cost an individual anywhere between £6 per day or £90 per month, which is one of the costliest forms of credit in the market.

The rent to own market is not currently covered by any price caps. It involves households renting household products and appliances on credit, such as TVs, fridges and washing machines, with the end of the agreement leaving the individuals owning the product. The FCA are aware that customers can eventually pay up to £2,000 for a washing machine that could be bought outright for £300, as The Guardian explains.

Some argue that regulation could wipe out rent to own and catalogue companies altogether, but some persist that the payday market has shown that an industry can still operate, even with higher barriers to entry.

FCA chief executive Andrew Bailey says: "We are pleased to see clear evidence of improvement in the payday lending market after a period when firms' treatment of customers and their business models were often unacceptable.

"However, there is more that we can do, and this review is about identifying the areas where consumers may be suffering harm so that we can focus our efforts accordingly."