The Office of Fair Trading has to stop dragging its feet and put the irons to the payday lending industry before more Brits fall into debt, one MP has urged.
there is enough risk to warrant dropping self-regulation and imposing new laws which provide greater exposure for the customer and more lender responsibility
The OFT has branded the Yes Loan chains as ‘unfit’ to trade and has thus revoked their credit license, meaning that they can no longer offer financial services
If, after 6 months, no loan materialises following funds being released to a licensed broker for that purpose, the consumer is entitled to 100% of the cash back
OFT said that targeting vulnerable individuals was “unacceptable” and, until standards within the sector are driven up, enforcement action will be taken.
This second investigation, however, is not about the credence of loans, rather the manner in which some firms push loans on customers with an inability to repay
providing short term loans are repaid on the agreed date, they are often cheaper than missing a credit card payment or slipping into unauthorised overdraft lending
Not only are many more people in debt further than a year ago but six out of ten people are actually concerned about the level of debt they’re in, a 40% rise
as per the summary of the OFT investigation, short term loans provide a useful service to UK citizens who, for whatever reason, are struggling to make ends meet
The Office of Fair Trading is cracking down on instant cash loan companies using the Internet to flout laws and guidelines, designed to protect customers they attract