The Daily Telegraph reports that a third of all the firms offering pay day loans and other types of consumer finance have failed to register with the City watchdog!
New figures from the Financial Conduct Authority (FCA) show that more than 19000 companies did not meet the April 2014 deadline by which they were to register with the FCA for interim permission to continue to carry out their business, as a result of which they can no longer offer consumer credit.
FCA -How to protect yourself
The FCA strongly advise you to only deal with consumer credit firms that have interim permission or are authorised by the FCA, and check the Financial Services Register and Consumer Credit Interim Permission register to ensure they are. These registers have information on firms and individuals that are, or have been, regulated by them.
You should also be aware that if you give money to an unauthorised firm, you will not be covered by the Financial Ombudsman Service or Financial Services Compensation Scheme (FSCS) if things go wrong
If a firm does not appear on the Registers but claims it does, contact the FCA Consumer Helpline on 0800 111 6768.
There are over 49000 firms with interim permission from the FCA, ahead of the full authorisation which is due to begin in September.
ED: "So if you have such a loan or thinking of getting one then make sure it is FCA approved, go on the FCA website to make sure, here"