– David Fisher, OFT Director of Consumer Credit
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.
Our report shows that a large number of payday loans are not repaid on time. I would urge anyone thinking about taking out a payday loan to make sure they fully understand the costs involved so they can be sure they can afford to repay it.
The actions are set out in a progress report published as part of the Office of Fair Trading's compliance review of the payday lending sector. It highlights concerns about:
- The adequacy of checks made by some lenders on whether loans will be affordable for borrowers.
- The proportion of loans that are not repaid on time.
- The frequency with which some lenders roll over or refinance loans.
- The lack of forbearance shown by some lenders when borrowers get into financial difficulty.
- Debt collection practices.
The Office of Fair Trading has just launched a new investigation into payday loans. Officials are today writing to all 240 payday firms warning them of bad practices.
The Office of Fair Trading says debt collection and affordability checks are big concern.
The latest figures showing average UK fuel prices, according to PetrolPrices.com, a website designed to save motorists money.
Commenting of the Office of Fair Trading's announcement that it is to conduct an investigation into UK fuel prices, David Cameron's official spokesman said:
– Spokesman for David Cameron
Clearly, the OFT is independent and this is a matter for them.
But if they think that there are problems in the way these markets are functioning and that is having an adverse effect on consumers, then they need to investigate.
An independent motoring research charity has welcomed the news that the Office of Fair Trading will be gathering information on the price of petrol and diesel in the UK.
RAC Foundation director Professor Stephen Glaister said:
– Professor Stephen Glaister, RAC Foundation
We have always argued for pricing transparency and this review promises to provide it.
There has long been a suspicion amongst drivers that pump prices are much quicker to rise than fall. Now at last we should get a definitive answer on how the market works.
We also welcome scrutiny of what the rapid decline in the number of petrol stations has meant for fuel supply and price. In 1990 there were some 18,000 forecourts. Now there are fewer than 9,000.
A campaign fighting for lower petrol and diesel prices has welcomed the news that the Office of Fair Trading will be gathering information on the pricing of petrol and diesel in the UK.
Quentin Willson of FairFuelUK said:
– Quentin Willson, FairFuelUK
FairFuelUK has been calling for this investigation into the road fuel market for months.
Anything that brings transparency and openness to a £32 billion market that's always been shrouded in mystery, will be good for consumers, businesses and the UK economy.
We want full disclosure to make sure pump prices in this country are fair, reasonable and, most importantly, go down quickly when the price of crude falls.
The Chief Secretary to the Treasury Danny Alexander, whose constituents in Inverness, Nairn, Badenoch & Strathspey suffer from high petrol prices because of their remoteness has welcomed the Office for Fair Trading has opened an investigation into petrol and diesel prices:
Delighted that OFT has announced call for information on fuel marketFrom @dannyalexander on Twitter: