Selfcert.co.uk and Quick Loans director Graeme Wingate has hit back at the FCA after the regulator issued a warning about his new brand that could lend to the unemployed.
Earlier this week the FCA warned consumers about Unemployed Loans, which is targeting the unemployed with unsecured self cert loans.
Unemployed Loans has not yet launched, but would be based in the UK, backed by capital from Quick Loans and would target UK borrowers.
Quick Loans has interim FCA permissions and is waiting for full permissions.
The FCA said: “We believe this firm [Unemployed Loans] has been providing financial services or products in the UK without our authorisation.
“This firm is not authorised by us but has been targeting people in the UK.”
In response, Wingate says: “We were extremely disappointed to read that the FCA had put out public warnings regarding one of the brands that Quick Loans is linked to. Once again the FCA is enforcement signalling – whilst really doing nothing.”
He adds the FCA has found no evidence of wrongdoing and that the website has not broken any rules.
Wingate says the FCA warning is “highly damaging” to Quick Loans’ reputation.
He says the Unemployed Loans website is designed to test consumer appetite and that it has not carried out any transactions yet.
Wingate says: “The basic idea with Unemployed was, there are a lot of people who are retired who can’t get loans. They have an income but are technically unemployed. The other point about Unemployed is to cater for people who are out of work, have a job offer but might need money to get transport.”
He adds: “We don’t feel that the FCA are interested in the enforcing of rules; what they are interested in, is looking like they are enforcing rules. This is something we have witnessed over the last year or two.”
Wingate says those who questioned the affordability of this type of lending were ignoring the interests of borrowers.
He says: “It’s us that are taking the risk. It’s our money, so it isn’t in our interests to lend money to people who can’t pay it back. There are some legitimate circumstances where people who are unemployed should not have a blanket ban and stopped from borrowing.”