<p>The Financial Conduct Authority (FCA) is taking over responsibility for consumer credit regulation in April 2014. The FCA proposes to put a number of requirements on lenders to treat borrowers fairly, including by treating them with forbearance and due consideration if they experience difficulties.</p><p>It is important that consumers are protected from unfair costs, especially as these costs can spiral for people struggling to repay. The Government has announced that it will bring forward an amendment to the Banking Reform Bill to require the FCA to introduce a cap on the cost of payday loans.</p><p>The FCA has also already proposed requirements to ensure consumers are not able to borrow more than they can afford: lenders will need to undertake thorough affordability assessments; the number of times a loan can be rolled over is limited to two, and at the point of rollover the lender must signpost borrowers to debt advice via the Money Advice Service (MAS).</p>