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24/02/2012
OFT Launches Payday Lending Review
The Office of Fair Trading (OFT) has today launched an extensive review of the payday lending sector. This is in part prompted by concerns that some payday lenders may be taking advantage of people in financial difficulty.
The review will investigate compliance with the Consumer Credit Act and the OFT's guidance on irresponsible lending. Evidence gained during the review will be used to boost standards across the sector and to drive out companies that are not fit to hold consumer credit licences.
The review will involve on-site inspections of 50 major payday lenders and surveys of industry and consumer organisations. Leading up to the review the OFT has conducted a sweep of over 50 payday lending websites and written to the main trade bodies outlining areas where it considers advertising standards need to be improved.
David Fisher, OFT Director of Consumer Credit, said: "We are concerned that some payday lenders are taking advantage of people in financial difficulty, in breach of the Consumer Credit Act and not meeting the standards set out in our guidance on irresponsible lending. This is unacceptable. We will work with the trade bodies to drive up standards but will also not hesitate to take enforcement action, including revoking firms' licences to operate where necessary.
"The payday sector has grown considerably since the OFT's high cost credit review in 2010. This, combined with the current tough economic conditions makes it the right time for us to review the industry and improve protection for consumers."
(CD/GK)
The review will investigate compliance with the Consumer Credit Act and the OFT's guidance on irresponsible lending. Evidence gained during the review will be used to boost standards across the sector and to drive out companies that are not fit to hold consumer credit licences.
The review will involve on-site inspections of 50 major payday lenders and surveys of industry and consumer organisations. Leading up to the review the OFT has conducted a sweep of over 50 payday lending websites and written to the main trade bodies outlining areas where it considers advertising standards need to be improved.
David Fisher, OFT Director of Consumer Credit, said: "We are concerned that some payday lenders are taking advantage of people in financial difficulty, in breach of the Consumer Credit Act and not meeting the standards set out in our guidance on irresponsible lending. This is unacceptable. We will work with the trade bodies to drive up standards but will also not hesitate to take enforcement action, including revoking firms' licences to operate where necessary.
"The payday sector has grown considerably since the OFT's high cost credit review in 2010. This, combined with the current tough economic conditions makes it the right time for us to review the industry and improve protection for consumers."
(CD/GK)
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13 February 2009
OFT Consults On Second Charge Lending Guidance
The Office of Fair trading (OFT) today launched a consultation on draft guidance for businesses engaged in second charge lending. Second charge loans, or 'homeowner loans', involve consumers with an existing mortgage taking out further personal borrowing secured against their home.
OFT Consults On Second Charge Lending Guidance
The Office of Fair trading (OFT) today launched a consultation on draft guidance for businesses engaged in second charge lending. Second charge loans, or 'homeowner loans', involve consumers with an existing mortgage taking out further personal borrowing secured against their home.
06 March 2013
Payday Lenders Risk Losing Licenses
The OFT is giving the leading 50 payday lenders, accounting for 90 per cent of the payday market, 12 weeks to change their business practices or risk losing their licences. They uncovered evidence of widespread irresponsible lending and failure to comply with the standards required of them.
Payday Lenders Risk Losing Licenses
The OFT is giving the leading 50 payday lenders, accounting for 90 per cent of the payday market, 12 weeks to change their business practices or risk losing their licences. They uncovered evidence of widespread irresponsible lending and failure to comply with the standards required of them.
10 July 2013
OFT Review Sees 11 Payday Loan Firms Change Policies
An Office of Fair Trading (OFT) warning has resulted in 11 payday loan companies deciding to stop offering short-term loans. Some 22 other companies have yet to respond to the regulator. Following a year long review, which found widespread bad practice in the industry, the OFT began writing to the 50 largest payday lenders in March.
OFT Review Sees 11 Payday Loan Firms Change Policies
An Office of Fair Trading (OFT) warning has resulted in 11 payday loan companies deciding to stop offering short-term loans. Some 22 other companies have yet to respond to the regulator. Following a year long review, which found widespread bad practice in the industry, the OFT began writing to the 50 largest payday lenders in March.
02 March 2007
Union anger at health sector pay rises
Unions have reacted angrily to the government's announcement that pay for nurses and other healthcare professions has been pegged below inflation. Nurses and other health care professionals will get 2.5%, 1.5% in April and 1% in November. General dental practitioners will get 2% but there is nothing on offer for general medical practitioners.
Union anger at health sector pay rises
Unions have reacted angrily to the government's announcement that pay for nurses and other healthcare professions has been pegged below inflation. Nurses and other health care professionals will get 2.5%, 1.5% in April and 1% in November. General dental practitioners will get 2% but there is nothing on offer for general medical practitioners.
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