Clamp down on payday lenders

Britain's biggest payday lenders have been threatened with being put out of business after a damning report by the Office of Fair Trading uncovered evidence of "widespread irresponsible lending".

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OFT: 28% of payday loans rolled over at least once

The Office of Fair Trading's (OFT) review of the payday loan market found around a third of loans are repaid late or not repaid at all.

Twenty-eight per cent of loans are rolled over or refinanced at least once, providing 50 per cent of lenders’ revenues.

Research by the OFT revealed key information about the payday loan market Credit: Office of Fair Trading

38 of the 50 lenders we visited failed to comply with at least one of the complaint handling rules set by the Financial Ombudsman Service.

A lack of awareness of the Financial Ombudsman Service’s rules was commonplace.

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