‘Loose’ moneylender regulations leave industry open to sharks

LOAN sharks legally charging up to 188% interest do not have to check customers’ ability to repay debts, under regulations published yesterday, and which have been described as “loose”.

The Financial Regulator’s new code for licensed moneylenders, drawn up after years of reports and consultation, insists loans must be “suitable” for a consumer.

But this requirement does not apply if a customer approaches the moneylender and asks for the loan, and there is no obligation to check income or outgoings.