He was discussing the future of consumer credit regulation at the Financial Services Expo in London.
Sinclair said: “We may see higher up-front costs, higher up-front fees and no back end fees on fixed term contracts.
“The right to repay early is one thing that is going to cause a great deal of complexity we believe.
“Consumers should have the right to repay fully or partially at any point in the contract.
“You can’t come up with a fictional amount at the start that means the customer has to pay that at the end.
“If you look at the markets in America, South Africa, Australia and Germany all the cost is loaded up front to the product.
“No early repayment charges are in the products, even on fixed term products.
“This is likely to change the nature of products within the UK marketplace in first and seconds.”
