Payday lenders told to clean up their act

Payday lenders told to clean up their act Payday lenders have been told to clean up their act after the Office of Fair Trading (OFT) found widespread examples of “irresponsible lending”. The OFT also plans to refer the payday loan market, worth over £2 billion per year, to the Competition Commission, after uncovering “deep rooted” problems with how companies compete for business. After investigating the largest 50 payday loan companies the OFT is giving the sector just 12 weeks to change how ...

Warning for payday loan companies

The payday loan industry faces fines and closures if it does not improve the way it does business. An interim report by the Office of Fair Trading (OFT) says that many payday lenders are not operating by the rules particularly when it comes to lending policy and the collection of debts. The full report will be published in February when the OFT has completed its’ investigations, however the interim report, published yesterday, has fuelled concerns about the practices of some payday lenders. Payday lender concerns The interim report comes after the OFT visited the 50 largest payday loan lenders, but it will be expecting ...