OFT action on payday loans
The Office of Fair Trading has referred the payday lending industry to the Competition Commission because of concerns it has about "deep-rooted" problems with the way competition works.
Concern payday lenders competing on speed not cost
The Office for Fair Trading (OFT) said it is concerned that payday lenders are mainly competing on the availability and speed of loan approval, rather than how much it will cost the borrower.
The trading watchdog said:
The OFT's chief executive, Clive Maxwell, added, "The Competition Commission can now conduct a detailed investigation to get to the root causes and, if necessary, use its far reaching powers to fix the payday lending market".
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