Brown calls for all unsecured lending to fall under FSA

Prime Minister Gordon Brown outlined plans in his manifesto today to make all unsecured credit regulated by the Financial Services Authority.

He says over the lifetime of the next parliament, as more affordable lending becomes available, it will clamp down on the interest rates and other fees charged by instant loan companies and payday or doorstep lenders, tackling the very high cost lending that hits low-income communities hardest.

He says: “We will introduce a single regulator for consumer finance to restore confidence and trust with responsibility for the supervision of all unsecured lending being passed to the Financial Services Authority.

“And new rules governing how financial products are sold will be introduced with a crackdown on unfair terms in contracts.”