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UK: Payday lenders face new regulation

By  |  February 25, 2015

Plans to force payday lenders to publish their rates and, crucially, the total amount payable on loans on a price comparison website, have been widely criticised.

After a 20-month investigation, the Competition and Markets Authority yesterday told lenders they will have to set up a Financial Conduct Authority-authorised comparison site if a commercial one fails to emerge.

Simon Polito, chair of the CMA’s Payday Lending Investigation Group, warned that “We expect that millions of customers will continue to rely on payday loans.”

But he thinks costs could be driven lower. “We want to ensure that customers are able to take advantage of price competition to further reduce the cost of their loans,” he said.

“Only price competition will incentivise lenders to reduce the cost borrowers pay.”

 

Full Content: City A.M.

 

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