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Department for Work and Pensions: Loans

Treasury written question – answered on 4th May 2020.

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Photo of Neil Coyle Neil Coyle Labour, Bermondsey and Old Southwark

To ask the Chancellor of the Exchequer, what proportion of short term loans are made by the Department for Work and Pensions; and what assessment the Financial Conduct Authority has made of the effect of those loans on the functioning of the market.

Photo of John Glen John Glen Minister of State (Treasury) (City), The Economic Secretary to the Treasury

In 2014, regulatory responsibility for the consumer credit market was transferred to the Financial Conduct Authority (FCA). Whilst the FCA is responsible for regulating this market, HM Treasury sets the regulatory perimeter which informs the types of agreements that fall under the FCA’s remit. Loans made by the Department for Work and Pensions (DWP) do not fall within the FCA’s regulatory remit. For that reason, the FCA has not assessed the impact of these loans on the functioning of the market.

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