Strict new rules on payday loans could force a quarter of lenders out of business, in a move by the UK regulator to clamp down on “the cycle of debt”. Martin Wheatley, chief executive of the Financial Conduct Authority (FCA), said the measures implemented today are designed to “take out” parts of the industry that loan without doing any affordability checks and load costs on to borrowers who “simply cannot pay”. “We’ve estimated up to a quarter could leave,” said Mr Wheatley. “We’d like firms to rise to our standards but if they can’t, then they can leave the industry.”

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