He said: " I do think that pay day lending has got to be better regulated which is why I've created the Financial Conduct Authority, a powerful new consumer regulator which didn't exist before but is bringing the regulation of this industry into its ambit.
And while lenders may have to cope with a new consumer regulator, its power and scope is shrinking daily.
"Just as bank regulators with a myopic focus on safety and soundness didn't work, a consumer regulator that doesn't consider the bank, is not the most effective way".
"If a small-business owner from Tuscaloosa tells me that he fears an out-of-control consumer regulator, I listen," said Senator Richard C. Shelby, Republican of Alabama.
The first visible result may come in about two years, the deadline for the consumer regulator to create a simplified disclosure form for mortgage loans.
"We think an independent consumer regulator, with rule-making and enforcement powers, is critical, and our position hasn't changed one iota," an administration official said late Wednesday, speaking on condition of anonymity to avoid disrupting negotiations over the bill.
