FCA to clamp down on poor practice in credit broker market

The FCA will be introducing new rules to tackle poor practice in the credit broker market.

Credit brokers will be banned from charging fees to customers unless they comply with requirements that customers are given clear information about who they are dealing with, what fee will be payable, and when and how the fee will be payable.

They will also be required to state prominently in all advertising that they are a credit broker and not a lender.

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The City watchdog is already investigating a number of credit broking firms.

Seven have been stopped from taking on new business, and three further cases have been referred for enforcement action.

The new rules come into force on 2 January.