The Financial Conduct Authority (FCA) has issued a warning about using paydayparty.co.uk, a payday loan firm which has not been authorised and is targeting customers in the UK.
Payday Party claim to provide short-term loans for values between £50 and £1,000, in just 15 minutes, with no credit checks and an instant decision.
The FCA strongly advise that people avoid using the firm, and any others which are unauthorised. This is because people will not be protected if they use firms that are not authorised by the FCA, and they end up being disadvantaged due to wrongdoing.
The Financial Ombudsman Service and Financial Services Compensation Scheme will not be required to provide any compensation to customers if they have used an unauthorised firm.
The Consumer Credit Interim Permission register, and Financial Services Register, can both be used to find out if a firm has received authorisation. It is therefore recommended to check these registers if you are unsure about a firm’s validity.
The FCA has been coming down hard on payday loan firms over the past year, and their review in March found that many lenders were still failing to deal with vulnerable customers properly, continuing to place them in stressful situations.