Whistleblower slates FSA over building societies

A whistleblower who has chosen to remain anonymous due to fears over legal action has slated the UK’s financial regulator, the Financial Service Authority, over its lack of action with regards to building societies venturing into risky areas during the credit boom. The FSA has been accused of ‘apathy and complacency’ by the whistleblower, who was a former supervisor with the authority. Read more

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Watchdog said regulators dithered over intervention

A consumer watchdog has recently claimed that regulators spent too much time dithering over intervention when it came to regulations, which resulted in failure to protect consumers when it came to sectors such as finance, food, energy, and water. Read more

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Anti loan shark scheme welcomed

A new scheme to tackle loans sharks has been welcomed by the National Consumer Council (NCC).

The organisation is hopeful that by introducing the project, around 200,000 of the UK’s poorest people will receive help.

Hopes have been raised that some of the most vulnerable people will now be able to escape the vice-like grip of illegal lenders.

“Removing illegal lenders from these communities not only frees their victims from threats and intimidation, but can help people find ways to borrow more cheaply,” said Claire Whyley, deputy director of policy at NCC.

“It’s vital, though, that these new projects are supported by efforts to make more affordable credit widely accessible in poor communities.”

Large numbers of people turn to loan sharks because they have such a bad credit rating that they feel they will not be given a loan by a reputable lender.

However, loan sharks are not restricted by regulation and often charge extortionately high interest rates.

As a result, many borrowers find themselves in an even worse financial situation than before they borrowed the money.

Tags: director, finance, loan, vice-like grip, scheme, regulation