This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.guardian.co.uk/money/2013/jul/10/payday-lenders-stop-loans-regulator
The article has changed 3 times. There is an RSS feed of changes available.
| Version 1 | Version 2 |
|---|---|
| Eleven payday lenders to stop offering short-term loans | Eleven payday lenders to stop offering short-term loans |
| (4 months later) | |
| Eleven payday lenders have decided to stop offering short-term loans since the Office of Fair Trading told firms to clean up their act, and the regulator is still waiting for 22 to respond to its ultimatum. | Eleven payday lenders have decided to stop offering short-term loans since the Office of Fair Trading told firms to clean up their act, and the regulator is still waiting for 22 to respond to its ultimatum. |
| The OFT started writing to the 50 biggest companies in March, after a year-long review of the sector revealed widespread bad practice resulting in cases of irresponsible lending and difficulties for borrowers. | The OFT started writing to the 50 biggest companies in March, after a year-long review of the sector revealed widespread bad practice resulting in cases of irresponsible lending and difficulties for borrowers. |
| It found lenders, which can charge in excess of 5,000% for short-term loans, were too focussed on the speed of their decisions, to the detriment of consumers, and has since referred the industry to the Competition Commission. | It found lenders, which can charge in excess of 5,000% for short-term loans, were too focussed on the speed of their decisions, to the detriment of consumers, and has since referred the industry to the Competition Commission. |
| The OFT contacted each firm it had reviewed to tell them what they needed to change in order to comply with the law, and gave them 12 weeks to respond to its demands. | The OFT contacted each firm it had reviewed to tell them what they needed to change in order to comply with the law, and gave them 12 weeks to respond to its demands. |
| Its latest figures show that so far 28 have replied, of which two have surrendered their credit licences entirely and a further eight have told the regulator that they will no longer be offering payday loans. Another lender not among the 50 reviewed has also given up it licence. | Its latest figures show that so far 28 have replied, of which two have surrendered their credit licences entirely and a further eight have told the regulator that they will no longer be offering payday loans. Another lender not among the 50 reviewed has also given up it licence. |
| Two firms have missed their deadline to respond, while the remaining 20 are all expected to have done so by the end of the month. | Two firms have missed their deadline to respond, while the remaining 20 are all expected to have done so by the end of the month. |
| The OFT would not release the names of the companies that had withdrawn from payday lending. | The OFT would not release the names of the companies that had withdrawn from payday lending. |
| A previous review of the debt management sector has led to more than 100 firms either leaving the market or being unable to get credit licences, the regulator said. | A previous review of the debt management sector has led to more than 100 firms either leaving the market or being unable to get credit licences, the regulator said. |
| At the start of the month the government held a summit with payday lenders to look at whether more regulation of the sector was needed. It has ruled out a cap on charges, a measure being lobbied for by some critics of the sector, but said that tougher advertising restrictions could come into force. | At the start of the month the government held a summit with payday lenders to look at whether more regulation of the sector was needed. It has ruled out a cap on charges, a measure being lobbied for by some critics of the sector, but said that tougher advertising restrictions could come into force. |
| The Financial Conduct Authority, which takes over regulation of the sector in April 2014, has indicated that it intends to take a tough stance against rogue lenders, and that a complete ban on adverts could be considered. | The Financial Conduct Authority, which takes over regulation of the sector in April 2014, has indicated that it intends to take a tough stance against rogue lenders, and that a complete ban on adverts could be considered. |