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UK: Financial regulator to take over payday loan watch from OFT

By  |  March 12, 2014

The Financial Conduct Authority is set to take over the Office of Fair Trading’s current supervision of 200 payday lenders throughout the UK starting April 1, say reports, as the UK prepares for a shift in competition policy oversight.

The OFT will combine with the Competition Commission to become the Competition and Markets Authority, leading to a restructuring in how current probes and competition cases are handled.

The FCA will take over the supervision of payday lenders, which have been criticized recently for allegations of “business models and culture,” according to the FCA.

Reports say about 60 complaints regarding payday lenders have been filed with the OFT. With the FCA set to take over that responsibility, reports say the financial watchdog said it will focus on how the lenders treat customers struggling to repay their loans.

Full Content: Bloomberg

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