Stream: Loans
The question
To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential risks associated with loans offered through the app Wagestream to employees on low incomes.
Answered by Lucy Rigby
As a consumer credit firm regulated by the Financial Conduct Authority (FCA), Wagestream must follow the FCA’s detailed rules on affordability checks. FCA rules mean that firms should only lend to consumers who can afford repayments and this should be based on a careful assessment of their income, spending, and financial commitments. These rules aim to prevent over-indebtedness, promote responsible lending, and ensure fair treatment of customers.
More broadly, ensuring individuals have access to the appropriate financial products and services they need is a key priority for the Government. This is why we are bringing forward a Financial Inclusion Strategy later this year which will seek to tackle a range of barriers individuals face, including how to increase access to affordable credit for underserved consumers. The Strategy will also consider how to improve the financial resilience of low-income households through interventions to support people to build savings, access insurance, and seek debt advice where they need it.
Verbatim has judged this answer against the question that was actually asked — answered, partly answered, or evaded. Sign in to see the verdict →