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The FCA And Protection From Short Term Lenders

How the FCA Protects You with Instant Cash Loans

The FCA (Financial Conduct Authority) is a UK consumer watchdog organisation. Among the many activities performed by the FCA are the following:

• Ensuring the integrity of the UK financial system.
• Maintenance of strict UK and EU standards for all financial firms.
• Protection and prevention of fraud and risky activity in the financial sector.
• Consumer protection by ensuring accountability of all financial enterprises.

Customers interact with the financial marketplace on a regular basis. This includes everyday transactions at your local bank, applications for credit cards, business lines of credit, pensions, short-term payday loans, and the like. The FCA is tasked with securing transactions between customers and all financial enterprises.

These are bank and non-bank entities, and they also include companies that issue instant cash loans to clients. The FCA works hard to get businesses to comply with stringent criteria. Companies with FCA compliance must uphold customer-centric policies. Simply put, they must put your interests before their own.

The FCA Levels the Playing Field for Short Term Loan Direct Lenders

The FCA works hard to ensure ongoing compliance and maintenance of high standards with all companies that bear its stamp of approval. Transparency, credibility, and excellent customer service are all crucial elements of a viable loan company.

This basic example illustrates how important FCA compliance is: Perhaps you are looking to compare payday loans providers since you are short of cash. In this case, it’s important to look beyond the basics of the instant cash loans website and look at the licensing and regulation.

When a company bears the FCA stamp, you can trust that company. Of course, it’s important to cross check references on the FCA website as well. Watchdog authorities will intervene in the markets to ensure that there is a fair playing field for everyone. Without the FCA, short-term loans direct lenders would charge really high interest rates and customers would not get the best deal.

FCA Tightens the Screws on Credit Lenders

Consumers can easily contact the FCA with any queries, questions, or complaints about the business practices of an instant cash loans lender. It’s a win-win situation for customers when FCA compliance is an issue. Businesses certainly don’t want to have their FCA licence revoked, and they will do everything in their power to treat customers fairly. Throughout its history, the FCA has put customers first.

This watchdog authority expects payday loans lenders, brokers, and trading platforms to follow the same practices. For example, the FCA requires that financial firms clearly state whether they are lenders or credit brokers. Customers can dispute any transactions they enter into without full knowledge or consent. Lenders cannot simply take money from customers’ accounts without their permission, or knowledge. This is clearly stated in the rules and regulations posted by the FCA.

What Can You Expect from FCA Regulation?

As a customer, you should always expect fairness from short-term loan direct lenders. Your situation should never be exploited by companies simply because you are in need. Equally important is transparency with interest rates, terms and conditions and payment-related issues.

For example, if you borrow £300 over 90 days from Fernovo, you can expect to repay £92.85 in interest, for a total of £392.85. This makes it easy for you to find out how payday loans compare with one another. And it’s thanks to the FCA that all of this is possible.


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