Responding to the OFT's Financial Services Plan published today, Fiona Hoyle, head of consumer finance at the FLA, said: "We are encouraged that the Office of Fair Trading has recognised that regulatory intervention in financial services markets needs to be proportionate. This is an essential requirement if we are to sustain a competitive market with real choice for consumers.
“The consumer credit market is already contracting. Overall consumer lending has fallen by around 20% over the past year. The large volume of new consumer credit regulation (both from Brussels and the UK regulators), along with the continued freeze in the wholesale funding markets are combining to put extra pressure on lenders just when they are being called upon to help reinvigorate the economy. Responsible regulation is as important as responsible lending."
