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UK: Competition watchdog confirms action on payday lending industry

By  |  February 24, 2015

The competition watchdog has confirmed plans to reform the payday lending industry to help borrowers get a better deal, including requiring companies to publish their rates and the total amount payable on loans on a price comparison website overseen by regulators.

The measures are outlined in the Competition and Markets Authority’s (CMA) final report on the payday lending market, which was put together following a 20-month investigation.

The CMA concluded that a lack of price competition between lenders has led to higher costs for borrowers, but a price comparison site authorised by the Financial Conduct Authority (FCA) will help drive those down.

“Only price competition will incentivise lenders to reduce the cost borrowers pay for their loans.

 

Full Content: London Evening Standard

 

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