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    Really Interesting Finance News
    Really Interesting Finance News
    Thursday, 26 March 2020 19:32

    FCA Begs Lenders To Return

    After 6 years of killing off lenders, the Financial Conduct Authority is now in an almighty panic as lending grinds to a halt, begging them to return.

    Around a month ago we predicted that lending was about to come crashing to a halt, we were right. The few lenders that had been lending have since shut the doors and stopped paying out 10 about days ago. The reason? The FCA's own rules.

    Over the last 6 years, The FCA has taken great pleasure in putting lenders out of business, taking 60,000 jobs with it. They used the instruments of price caps and fines for breaking vague affordability rules to do it's bidding. At the same time, they stood back and watched banks raise their prices for overdrafts, mortgages and credit cards.

    Now the brown stuff has hit the fan in the economy, they have realised that banks have shut down their credit facilities and consumers have nowhere to go - except loansharks. This is a disaster for the FCA. The only thing they will be judged on is the number of people going to loan sharks.

    So desperate are The FCA to stop people going to loan sharks, they have now begun to backtrack, writing to lenders, demanding that they explain why they are no longer lending.

    Lenders are refusing to come to the rescue of The FCA, one well-known lender told us "They have made their bed, they will have to lie in it. They know full well why we are not lending. We are happy to sit this one out. The FCA needs to understand that their years of virtue signalling has consequences. It's popcorn time".

    We expect the Treasury to soon issue a warning to The FCA, instructing them to relax the rules and do everything they can to be welcome private lenders back to the industry. This could be a c-change in the way mortgages and payday loans are issued in the UK.

    What we are witnessing as people look to the Government for handouts is that if you kill Wonga, you have to become Wonga.

    Our news service is great because it pulls no punches and doesn't allow political correctness to interfere with our views.
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