OFT on brink of going berserk with payday lenders...
The big, mad dogs at the Office of Fair Trading have got their sharpest teeth in and they’re ready to get stuck into the ‘payday loan’ industry.
The OFT has issued an interim report, saying that most of the 50 big firms in the sector do not operate fully by its rules, and that formal investigations have begun into several of them over aggressive debt collection practices, with reckless lending also a major concern.
There’ll be a full report released in early 2013 but the OFT have said that all 240 payday lenders have been told they need to shape up.
David Fisher, the OFT's director of consumer credit, said, ‘We have uncovered evidence that some payday lenders are acting in ways that are so serious that we have already opened formal investigations against them. It is also clear that, across the sector, lenders need to improve their business practices or risk enforcement action.’
We’ll wait and see how ferocious the OFT get in their full report and whether they’ll be shutting down some of the less edifying payday lenders out there.