Great News.. New OFT Investigation

[MARTIN3030]

announced on Credit Today

 

http://www.credittoday.co.uk/article/12198/online-news/oft-investigating-payday-loan-market

[iaintw]

its about time their doing this

[daisy72]

Yes i sent a complaint to OFT regarding Captial Finance One lack of compliance to regulations and interest charges!! Here's hoping they get shut down from what I've read on these boards an awdul pdl company wishing i never took out a pdl with them now.

Live and Learn right???

[fkofilee]

OFT launches review into payday lending

Friday, February 24, 2012

 

 

The OFT has today launched an extensive review of the payday lending sector.

This is in part prompted by concerns that some payday lenders may be taking advantage of people in financial difficulty.

 

The review will investigate compliance with the Consumer Credit Act and the OFT's guidance on irresponsible lending. Evidence gained during the review will be used to boost standards across the sector and to drive out companies that are not fit to hold consumer credit licences.

 

There are a number of issues of concern that the OFT will focus on during the review, including:

 

- Giving loans without first checking adequately that the borrower can repay them.

 

- Inappropriately targeting particular groups of people with clearly unsuitable or unaffordable credit.

 

- Rolling over loans so that charges escalate and the loans become unaffordable.

 

- Not treating borrowers that get into financial difficulties fairly.

 

The review will involve on-site inspections of 50 major payday lenders and surveys of industry and consumer organisations.

 

Leading up to the review the OFT has conducted a sweep of over 50 payday lending websites and written to the main trade bodies outlining areas where it considers advertising standards need to be improved.

 

The review is in addition to and supports the OFT's previous enforcement action within the payday lending sector. For example, requirements were imposed on CIM Technologies Limited, trading as 'Toothfairy Finance' in November 2010.

 

In 2010 the OFT conducted a similar compliance review of the debt management sector which resulted in 43 companies surrendering their licences and enforcement action against a further 13 businesses to revoke their licences.

 

David Fisher, OFT Director of Consumer Credit, said:

 

"We are concerned that some payday lenders are taking advantage of people in financial difficulty, in breach of the Consumer Credit Act and not meeting the standards set out in our guidance on irresponsible lending. This is unacceptable.

 

"We will work with the trade bodies to drive up standards but will also not hesitate to take enforcement action, including revoking firms' licences to operate where necessary.

 

"The payday sector has grown considerably since the OFT's high cost credit review in 2010. This, combined with the current tough economic conditions makes it the right time for us to review the industry and improve protection for consumers.'

 

Consumer Affairs Minister Norman Lamb said:

 

"The OFT is right to launch a compliance review of its guidance in the payday lending market to make sure that companies are adhering to agreed standards and in particular to identify those practices which can harm vulnerable consumers.

 

"We look forward to seeing the findings which, where necessary, will be used to take further enforcement action and drive up standards within the industry. This includes improving consumer protections and having an open and transparent lending market."

 

The final report of the review together with information on follow up action will be published later in the year.

 

 

Ladies & Gents

 

Those Complaints Have Paid Off! ^__^

[MARTIN3030]

Yes and not before time.

[fkofilee]

ive inboxed you to sticky the thread or update the one that has been stickied already.

[MARTIN3030]

This thread has been stickied,and merged with other one.

[sequenci]

Press release:

 

http://www.oft.gov.uk/news-and-updates/press/2012/11-12

[MARTIN3030]

Noticed that last day is May 18th.

 

http://www.oft.gov.uk/OFTwork/credit/payday-lenders-compliance-review/

[citizenB]

This is the original thread

 

http://www.consumeractiongroup.co.uk/forum/showthread.php?339665-Have-you-been-treated-badly-by-your-payday-loan-provider-The-OFT-would-like-YOUR-help.&p=3792123#post3792123

[citizenB]

 

The OFT has launched a review into payday loans. They are keen to seek opinion from the credit industry, debt advice industry, consumer groups and YOU.

 

You can read more about the review and why it's being undertaken here: http://www.oft.gov.uk/news-and-updates/press/2012/11-12

 

If you would like to raise a complaint direct to the OFT please complete the following form and send it in:

 

http://www.oft.gov.uk/shared_oft/Credit/complaint-form.pdf

 

The form is quite long and detailed but please do not left it put you off. Here is your chance to change the shape of the payday loan industry in the future.

 

 

Please have your say.