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UK: Competition regulator agrees with payday lending market reforms

 |  August 13, 2015

The UK Comeptition and Markets Authority Thursday published its final order on the under-fire payday lending market to increase price competition between lenders and to provide further assistance to borrowers.

The CMA’s move to improve competition in the payday lending market follows proposals made by the Financial Conduct Authority in July to introduce a price cap on new payday loans from January 2014.

Back in October 2014, the Financial Conduct Authority said payday lenders should have to detail their products on price comparison websites in order to help borrowers make quick and accurate comparisons between loans.

In its final report Thursday, the CMA backed up the FCA and said payday lenders will be required to “provide customers with clear, objective and comparable information on all potential loan costs, in particular the total amount payable, and to allow customers to compare different loans by searching easily on the most relevant features such as loan amount and duration,” it said in a statement.

Full content: London South East

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