Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what discussions he has had with representatives of the Financial Conduct Authority on ensuring that adjudicator rulings are included in consideration for compensation when payday lending companies go into administration.

Where a high-cost credit firm enters administration, customers with outstanding compensation claims, including those which result from an adjudication by the Financial Ombudsman Service, become unsecured creditors in the administration, and so will be paid after secured creditors and preferential creditors.

Treasury ministers and officials meet regularly with the FCA, and the Government will continue to work closely with the FCA to ensure consumers of financial services are treated fairly.