In response to the announcement today from the Office of Fair Trading (OFT) on the payday loan sector Which? executive director Richard Lloyd said:
“We’re pleased the Government and regulators are planning tough action to crack down on irresponsible lending, especially on high-cost lenders that exploit consumers struggling to get by in tough economic times.
“Which? research has repeatedly found poor affordability checks and excessive charges that push consumers into a vicious cycle of debt. So a referral of the payday market to the Competition Commission to consider its future is a good move but there must also be no delay in taking immediate action to protect people in difficulty today.
“We want all the regulators involved to immediately crack down on payday lenders who flout the rules and use their new powers to take strong, proactive action to clean up the whole of the consumer credit market.”