Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether the Government has plans to bring forward legislative proposals to ensure that payday lenders make individual assessments of the effect on people who have (a) gambling and (b) mental health problems of taking out a loan.

The Regulation of consumer credit is a matter for the Financial Conduct Authority (FCA). The Government has given the FCA strong powers to protect consumers.

FCA rules are based on the principle that money should only be lent to a consumer if they can afford to repay it. The rules set out what is expected of firms, and the sanctions if they lend irresponsibly.

The FCA also has comprehensive guidance for firms when lending to consumers with mental capacity limitations. Firms should take reasonable steps to ensure that they have suitable business practices and procedures in place for the fair treatment of customers who they understand, or reasonably suspect, have or may have a mental capacity limitation