PFD report

Kane Samuel Sparham-Price · Prevention of Future Deaths report

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Issued 5 Sep 2014•Manchester South

Report record

Published report and response evidence

This page connects the concerns raised in this report with statements found in recipients’ published responses. A link shows a clear evidence connection; it does not assign responsibility.

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Concerns
1

Raised in this report

Recipients
1

Named on the report

Responses found
1

Of 1 recipient

Stated actions
7

Described in responses

Recipients and published responses

Source document

Full report text

This is the full text from the original published report.

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Concerns and recipient responses

Select any concern, action or position to view the source wording.

Concerns raised1

  1. Lack of a statutory minimum protected bank balance after payday lender deductions
Responses linked to these concerns

Each statement is shown once, even when linked to more than one concern.

Actions described in response An action is something a recipient says it has done, is doing, or plans to do in response to a concern raised.3

  1. Action

    Proactively supervise authorised high-cost short-term lenders.

    Stated by Financial Conduct AuthorityStated plannedThe respondent said that this action was planned when they made their response on 5 September 2014.
  2. Action

    Rigorously assess high-cost short-term lenders’ business models through the authorisation process.

    Stated by Financial Conduct AuthorityStated plannedThe respondent said that this action was planned when they made their response on 5 September 2014.
  3. Action

    Restrict high-cost short-term lenders’ continuous payment authorities to two repayment attempts and prohibit partial-payment collection.

    Stated by Financial Conduct AuthorityStated completedThe respondent said that this action was complete when they made their response on 5 September 2014.

Respondent positions A position is what a recipient says about a concern when it does not describe a specific action.2

  1. Position

    Existing CPA restrictions and wider conduct, authorisation and supervision rules are considered sufficient to reduce the risk of consumers being left without funds.

    Stated by Financial Conduct AuthorityExisting arrangements considered sufficientThe respondent said that existing arrangements were sufficient, so no further action was needed.

Source evidence

How this individual concern was interpreted

PFD Monitor created a concise, searchable interpretation from the report wording shown below. Response links show a clear evidence connection; they do not assign responsibility.

PFD Monitor interpretation

Lack of a statutory minimum protected bank balance after payday lender deductions

Wider context from the report

“As shown in box 5 above, he was left with no money in his account and no means of borrowing any more. Whilst I accept that the various pay-day lenders are legally entitled to ‘clear out’ someone’s bank account if money is owing to them, it struck me that there ought to be a statutory minimum amount which MUST be left in an account (say £10.00) to avoid absolute destitution; and as I understand you set and regulate the rules, you might look at this with a view to preventing further deaths. ”

Is this part of a recurring concern?

No recurring-concern membership is currently published.

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Source evidence

How this respondent action was interpreted

PFD Monitor created a concise, searchable interpretation from the published response wording shown below.

PFD Monitor interpretation

Proactively supervise authorised high-cost short-term lenders.

Verbatim wording from the response

“The authorisation process will rigorously assess the business models of lenders operating in this sector to ensure that consumers are treated fairly. Firms will not be authorised if they cannot demonstrate that they are able to comply with the price cap and other FCA rules, including those on rollovers and CPAs outlined above. Once they are authorised, we will pro-actively supervise these firms.”

Source location

2014-0463-Response-by-Financial-Conduct-Authority
Page 3 · response
Published 5 September 2014

Open published response

Source evidence

How this respondent action was interpreted

PFD Monitor created a concise, searchable interpretation from the published response wording shown below.

PFD Monitor interpretation

Rigorously assess high-cost short-term lenders’ business models through the authorisation process.

Verbatim wording from the response

“The authorisation process will rigorously assess the business models of lenders operating in this sector to ensure that consumers are treated fairly. Firms will not be authorised if they cannot demonstrate that they are able to comply with the price cap and other FCA rules, including those on rollovers and CPAs outlined above. Once they are authorised, we will pro-actively supervise these firms.”

Source location

2014-0463-Response-by-Financial-Conduct-Authority
Page 3 · response
Published 5 September 2014

Open published response

Source evidence

How this respondent action was interpreted

PFD Monitor created a concise, searchable interpretation from the published response wording shown below.

PFD Monitor interpretation

Restrict high-cost short-term lenders’ continuous payment authorities to two repayment attempts and prohibit partial-payment collection.

Verbatim wording from the response

“As outlined below we have already taken action in this area through the restriction on the use of Continuous Payment Authorities (CPAs) to take partial payments from an account. We believe that this (together with our other conduct standards) will mitigate the likelihood of consumers being left with a zero balance on their account, although we do recognise it is a possibility that only a small balance will remain.”

Source location

2014-0463-Response-by-Financial-Conduct-Authority
Page 1 · response
Published 5 September 2014

Open published response

Source evidence

How this respondent position was interpreted

PFD Monitor created a concise, searchable interpretation from the published response wording shown below.

PFD Monitor interpretation

Existing CPA restrictions and wider conduct, authorisation and supervision rules are considered sufficient to reduce the risk of consumers being left without funds.

Verbatim wording from the response

“As outlined below we have already taken action in this area through the restriction on the use of Continuous Payment Authorities (CPAs) to take partial payments from an account. We believe that this (together with our other conduct standards) will mitigate the likelihood of consumers being left with a zero balance on their account, although we do recognise it is a possibility that only a small balance will remain.”

Source location

2014-0463-Response-by-Financial-Conduct-Authority
Page 1 · response
Published 5 September 2014

Open published response

Source evidence

How this respondent position was interpreted

PFD Monitor created a concise, searchable interpretation from the published response wording shown below.

PFD Monitor interpretation

A statutory £10 minimum balance could create privacy concerns, prove ineffective, leave consumers worse off, or cause failed-payment fees.

Verbatim wording from the response

“The ability of lenders to access a consumer’s bank account to ascertain what residual balance may be available would raise significant concerns about privacy. In practical terms, it might”

Source location

2014-0463-Response-by-Financial-Conduct-Authority
Page 1 · response
Published 5 September 2014

Open published response

Other statements in published responses

These actions and other statements could not be clearly connected to one concern in this report.

Recipient-stated actions An action is something a recipient says it has done, is doing, or plans to do in response to a concern raised.4

  1. 1

    Consult on introducing a price cap for high-cost short-term credit.

    Stated by Financial Conduct AuthorityStated completedThe respondent said that this action was complete when they made their response on 5 September 2014.
  2. 2

    Require prominent risk warnings and Money Advice Service links in high-cost short-term credit promotions.

    Stated by Financial Conduct AuthorityStated completedThe respondent said that this action was complete when they made their response on 5 September 2014.
  3. 3

    Publish final rules on the high-cost short-term credit price cap.

    Stated by Financial Conduct AuthorityStated plannedThe respondent said that this action was planned when they made their response on 5 September 2014.
  4. 4

    Restrict high-cost short-term lenders to two loan rollovers and require debt-advice information before a rollover.

    Stated by Financial Conduct AuthorityStated completedThe respondent said that this action was complete when they made their response on 5 September 2014.

Source evidence

How this respondent action was interpreted

PFD Monitor created a concise, searchable interpretation from the published response wording shown below.

PFD Monitor interpretation

Consult on introducing a price cap for high-cost short-term credit.

Verbatim wording from the response

“We have also recently consulted on introducing a price cap on high-cost short-term credit from 2nd January 2015. We plan to publish final rules on the cap in early November, which will meet a duty given to us by the Government to secure an appropriate degree of protection for consumers against excessive charges in this market.”

Source location

2014-0463-Response-by-Financial-Conduct-Authority
Page 2 · response
Published 5 September 2014

Open published response

Source evidence

How this respondent action was interpreted

PFD Monitor created a concise, searchable interpretation from the published response wording shown below.

PFD Monitor interpretation

Require prominent risk warnings and Money Advice Service links in high-cost short-term credit promotions.

Verbatim wording from the response

“In addition, high-cost short-term lenders must also now include a prominent risk warning on all financial promotions. The warning must include a link to The Money Advice Service, which has introduced specific advice for consumers considering payday loans. This is available at:”

Source location

2014-0463-Response-by-Financial-Conduct-Authority
Page 2 · response
Published 5 September 2014

Open published response

Source evidence

How this respondent action was interpreted

PFD Monitor created a concise, searchable interpretation from the published response wording shown below.

PFD Monitor interpretation

Publish final rules on the high-cost short-term credit price cap.

Verbatim wording from the response

“We have also recently consulted on introducing a price cap on high-cost short-term credit from 2nd January 2015. We plan to publish final rules on the cap in early November, which will meet a duty given to us by the Government to secure an appropriate degree of protection for consumers against excessive charges in this market.”

Source location

2014-0463-Response-by-Financial-Conduct-Authority
Page 2 · response
Published 5 September 2014

Open published response

Source evidence

How this respondent action was interpreted

PFD Monitor created a concise, searchable interpretation from the published response wording shown below.

PFD Monitor interpretation

Restrict high-cost short-term lenders to two loan rollovers and require debt-advice information before a rollover.

Verbatim wording from the response

“We have introduced new rules for providers of high-cost short-term credit. These rules contain a number of new restrictions that will significantly reduce the scope for consumer detriment.”

Source location

2014-0463-Response-by-Financial-Conduct-Authority
Page 2 · response
Published 5 September 2014

Open published response
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Information checked against the published report and official responses · Data reviewed 7 Sep 2026 · About data quality and limitations

Data last updated 7 September 2026