Which? response to the Competition and Markets Authority’s payday loan announcement

Responding to the Competition and Markets Authority’s payday loan announcement, Richard Lloyd, Which? executive director said:

“The Competition and Markets Authority is right that a lack of competition is leading to consumers paying over the odds for payday loans.

“Forcing lenders to be clear and upfront about costs would help consumers to compare the price of different loans. But this is not sufficient to clean up the payday market and stop the spiral of debt into which so many people fall.

“We also need to see tougher action by the regulators to clamp down on the excessive charges that borrowers get hit with when they’re in financial difficulty.”