– 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 Office of Fair Trading has launched an investigation into payday loans. Officials are writing to all 240 payday firms, warning them over the use of "aggressive debt collection" methods.