http://cashpaydayloans.org.uk/news/payday-loans/payday-lenders-face-tough-examination-by-new-financial-regulator - The brand new Financial Conduct Authority (FCA) will begin its watch overseeing the consumer credit market in 2013. Their remit is to make it tougher for companies like payday loans lenders to enter into the credit market. This is a direct response to the pressure generated by consumer groups who have been very active lobbying the UK government to tighten regulation in the industry. Indeed the payday loans market is not alone in receiving calls for tighter regulations; the majority of financial instruments are coming under increasing scrutiny in response to the banking crisis. Indeed the UK finance industry is rapidly starting to look like Cayman Islands of finance. So the new FCA will have largely increased powers over the OFT (Office of Fair Trading) and can act pro-actively to uncover illegal activity and impose unlimited fines on companies who fall foul of the rules. Aside from the punitive measures companies like payday lenders will have a harder time to enter into the market. The FCA will implement a strict set of checks on these companies before allowing them to trade. Although there is no mention of how this will affect affiliate businesses. Consumer groups have really been the driving force behind these changes calling for much tighter regulation of the short term lending industry. Consumer Focus having joined the initiative saying more should be done “to prevent consumers getting caught in spiralling debt”. The concern has always been that borrowers are vulnerable to taking on more debt that they can ever hope to repay; this is then compounded by an economic environment that is seeing the UK public paying record prices for fuel, living costs, and a reduction in job security. Just maintaining standard of living is becoming a real challenge. Sheltor (the housing and homeless charity) commissioned a study in 2011 which showed that one in 7 Britons have used credit to help pay their rent or mortgage. This includes unauthorised overdrafts and payday loans amongst other forms of short term loans. When extrapolated to the next 6 months this means 3.5million people are likely to turn to these forms of loans just to cover their rent or mortgage.