Expand credit unions as alternative to payday lenders, FCA urges

Payday loans

Non-profit cooperatives should be encouraged to disrupt high-cost lenders, says regulator

The financial regulator is calling for a government review of credit union rules to give vulnerable consumers a viable alternative to payday lenders.

The Financial Conduct Authority said looser laws would allow credit unions to offer a wider range of products and services to customers. It said the move could help higher risk customers who often turn to expensive payday loans to make ends meet.

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