Your article headlined “Watchdogs must be encouraged to bite” (2 December) suggested that the Financial Services Authority (FSA) had not addressed “extortionate interest rates set by ‘payday lenders’”.
The FSA does not currently regulate payday lending or consumer credit, so has no power to take any action in this area.
The government plans to consult on the transfer of responsibility for consumer credit from the Office of Fair Trading (OFT) to the future Financial Conduct Authority in 2014. We will be working with the OFT and HM Treasury on these plans.
Financial Services Authority
The North Colonnade