Can I trust payday loan lenders? How to check the FCA Register

When you need money quickly, a payday loan can seem like a straightforward solution – but not all lenders are created equal. Unfortunately, some unregulated companies still try to take advantage of borrowers by offering loans that break UK regulations, charge excessive fees, or engage in unfair practices.

That’s why it’s crucial to know how to check if a lender is authorised by the Financial Conduct Authority (FCA) before borrowing. In this guide, we’ll explain what an FCA check is, how to check FCA registration using the official register, what to look for in a legitimate payday loan company, and how Moneyboat ensures responsible, transparent lending every time.

In this guide:

• Why FCA regulation matters
• How to check the FCA Register
• How to check if a loan company is legitimate
• Are all payday loan lenders the same?
• What makes Moneyboat a credible lender?
• Warning signs of unregulated lenders
• How to protect yourself online
• Where to get free financial advice
• How to check the FCA register: Key takeaways

Why FCA regulation matters

The Financial Conduct Authority (FCA) regulates financial services firms in the UK, including payday and short-term loan lenders. This regulation protects borrowers by setting strict rules around:

• Interest rates and charges: There’s a cap on the total cost of a payday loan. You’ll never pay more than double what you borrowed.
• Fair treatment: Lenders must assess affordability before offering a loan, ensuring you’re not borrowing more than you can repay.
• Transparency: All costs and repayment terms must be clear upfront.
• Debt collection practices: The FCA restricts aggressive or misleading recovery tactics.

If a company isn’t FCA-authorised, it’s illegal for them to offer payday loans in the UK. Borrowing from an unregulated lender puts your money, personal data, and financial wellbeing at serious risk.

How to check the FCA Register

The FCA Register is the most reliable way to confirm whether a financial company is regulated. It’s a free public tool that lists every business and individual authorised to provide financial services in the UK.

Here’s how to check the FCA register step by step:

1. Go to the official Financial Services Register website
2. Enter the lender’s name, trading name or firm reference number (FRN)
3. Check the results carefully:
   • Is the company’s status ‘Authorised’?
   • Does the address or website match the one you’ve been contacted by?
   • Are there any warnings about unauthorised clones (fraudsters copying legitimate company names)?
4. If something looks suspicious, cross-check using the FCA’s scam reporting tool. The FCA also has a Warning List of unauthorised firms that you can check, though not all unauthorised firms may be listed on there.

Even if a company looks familiar, always double-check their entry. Scam lenders often create fake websites with names that sound like reputable firms.

How to check if a loan company is legitimate

FCA authorisation is the strongest sign that a payday loan lender is legitimate, but there are other ways to confirm you’re dealing with a trustworthy company:

• Website security: Look for ‘https://’ and a slider symbol in the browser bar before entering any personal information. This indicates a secure connection and can direct you to the website’s security settings and certification.
• Contact details: Genuine lenders will list a physical address, UK phone number, and customer service email. You can then check the address to see if it’s legitimate.
• Transparent terms: Costs, repayment dates and interest rates should be easy to find and written in plain English.
• No pressure: Be cautious if a company rushes you to make a decision or pushes for upfront fees.
• Positive reviews: Check sites like Trustpilot for feedback from real customers.

If you can’t find the lender on the FCA Register, don’t borrow from them. You could lose your money and have no legal protection if things go wrong.

Are all payday loan lenders the same?

Not at all. Payday and short-term lenders vary widely in their approach to customer care, affordability assessments, and transparency.

While all regulated lenders must meet the same FCA standards, responsible lenders go above and beyond compliance. They take extra steps to make sure borrowing remains a safe, informed choice.

Like Moneyboat, some direct lenders will use secure open banking technology to get a real-time picture of your finances – helping ensure the loan is genuinely affordable. While our decisions are powered by technology, we have a dedicated lending team who work seven days a week to review applications.

Their expertise combined with our use of technology allows us to make fast, responsible, and fair lending decisions for every customer.You can learn more about how this technology supports responsible lending in our guide: Open banking and payday loans.

What makes Moneyboat a credible lender?

At Moneyboat, we take responsible lending seriously. As an FCA-authorised direct lender, we operate in a way that’s fair, transparent and focused on your financial wellbeing.

Here’s what sets us apart:

• FCA authorisation: Moneyboat is regulated by the Financial Conduct Authority, ensuring all lending follows strict industry standards.
• Clear communication: We explain every cost upfront – no hidden fees, ever.
• Responsible affordability checks: We make sure any loan you take is realistic and affordable based on your financial situation.
• Human decisions powered by tech: We use smart technology to assess applications quickly and fairly, with our UK-based team ready to step in whenever a closer look’s needed.
• Commitment to financial education: Through our Moneyboat blog, we publish practical, non-judgmental guides to help people make better financial decisions.

For more on how we operate, visit our About Us page or explore our responsible lending FAQs.

Warning signs of unregulated lenders

Unfortunately, some companies still try to exploit borrowers by operating outside FCA regulation. Watch for these red flags before agreeing to a loan:

• No company registration or FCA number listed anywhere on the site
• Unusual or unprofessional communication – spelling errors, no address, or pressure to act quickly
• Requests for upfront fees before approving the loan
• Promises of ‘guaranteed approval’ or loans with ‘no credit check’ – these are often scams
• Payment requested in vouchers, cryptocurrency or gift cards

If you’re unsure, contact the FCA or Citizens Advice before proceeding.

How to protect yourself online

Online loan applications are convenient, but it’s important to take steps to safeguard your data:

• Use secure Wi-Fi connections when applying for loans or entering financial details
• Keep passwords unique and update them regularly
• Check that a lender’s website privacy policy explains how your data is stored and used
• Avoid clicking links in unsolicited texts or emails – even if they appear to be from a well-known company

See our guide on how to protect your personal data online for more safety advice.

Where to get free financial advice

If you’re unsure about borrowing, or struggling with debt, there are many third-party financial support organisations who can provide confidential and independent help. These include:

• StepChange: Debt advice and management plans
• Citizens Advice: Free financial guidance and consumer protection advice
• MoneyHelper: Government-backed tools and resources
• National Debtline: Telephone and online support

How to check the FCA register: Key takeaways

• Always check the company on the FCA Register before applying for a payday or short-term loan
• The FCA Register checks and confirms whether a company is regulated, authorised, genuine and safe to deal with
• Look for clear communication, secure websites and transparent fees – these are key signs of a trustworthy lender
• Avoid any company not listed on the FCA Register, no matter how attractive the offer sounds
• Moneyboat is an FCA-regulated direct lender committed to responsible, transparent lending

Explore more from the Moneyboat blog. From how to deal with financial stress to our guide to cybercrime awareness, you’ll find a host of useful financial insights.