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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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27 June 2013
Competition Inquiry For Payday Loan Industry
The Office of Fair Trading (OFT) has referred the payday lending industry to the Competition Commission over concerns it has about "deep-rooted problems" with the way competition works.
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The Office of Fair Trading (OFT) has referred the payday lending industry to the Competition Commission over concerns it has about "deep-rooted problems" with the way competition works.
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.
04 March 2013
Banks Reduce Lending
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The Bank of England has published updated data on the use of the Funding for Lending Scheme (FLS). Today’s publication shows for each group participating in the FLS the amount borrowed from the Bank and the net quarterly flows of lending to UK households and businesses for the fourth quarter of 2012.
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.
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