Here (Just be aware this post will change accordingly with updates from Sky News )

The Office of Fair Trading (OFT) has confirmed it is to refer the payday loans market to the Competition Commission to investigate "deep-rooted" problems.

It announced its decision following a period of consultation, having already issued the market's biggest participants with an ultimatum to clean up their act or risk being closed down.

The OFT said it was worried about a number of areas, including:

:: Practices that make it difficult for consumers to identify or compare the full cost of payday loans, undermining competition over price for loans.

:: Barriers to switching between lenders when loans are rolled over that prevent other lenders competing for this business.

:: Variable levels of compliance with relevant laws and guidance leading to firms that do invest time and effort complying being at a competitive disadvantage to firms that do not.

:: A significant proportion of borrowers have poor credit histories, limited access to other forms of credit and/or a pressing need to borrow. The cost of the loan may therefore be a less significant factor for borrowers, which may weaken competition on price between lenders.

The watchdog said it was also concerned that lenders were competing primarily on the availability and speed of loan approval, rather than price and that some business models appeared to be predicated on making loans which were unaffordable, leading to borrowers paying far more than expected through rollovers, additional interest and other charges.

It said lenders appeared to derive up to 50% of their revenue from such practices.

The OFT had previously identified a series of other issues, including lenders not carrying out proper affordability checks before lending or rolling loans over.

Firms were also accused of failing to explain adequately how payments will be collected and acting aggressively to claw back debts.

The OFT said it expected responses by the end of July from all 50 payday lenders it contacted earlier this year, giving them 12 weeks to demonstrate they complied fully with their legal obligations.

To date, five of the 50 lenders have informed the OFT that they have left the payday market while three firms not included in the crackdown have had their consumer credit licences revoked.

More follows...

I think they also need to look at the relationships between a few of the PDLs..

I think they also need to look at the relationships between a few of the PDLs..

I agree with your point too... I think they will and the marketing behind payday loan companies using multiple brands..

Yess CIM Tech... Im TALKING about you!!! & Cash Genie... (Aristal Holdings)

Minicredit ltd

Text Loan... The list goes on... :/