Pay day lenders should be clearly identified, named on a public register and directors and top executives should have to pass fit and proper tests, says an industry body which represents major finance companies.

Consumer advocates have welcomed the proposal to define high interest short term lenders but say all finance firm directors and executives should have to pass the same fit and proper tests.

The Financial Services Federation (FSF) which has 60 members including car and consumer finance firms BMW Financial Services, Turners, Avanti Finance and Latitude Financial Services, is proposing a focus on pay day lenders as part

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