Payday lenders not in FSA remit

YOUR article titled “‘Middle-class’ FSA ignored payday loans” (Business, 2 December) said that the Financial Services Authority (FSA) had “failed to stem the rise of payday lenders charging extortionate interest rates for poorer borrowers”.

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 to the future Financial Conduct Authority in 2014. We will be working with the OFT and HM Treasury on these plans.

Lesley Titcomb, FSA Chief Operating Officer