OFT action on payday loans

The Office of Fair Trading has referred the payday lending industry to the Competition Commission because of concerns it has about "deep-rooted" problems with the way competition works.

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Payday lenders to find out if they will face investigation

The trading watchdog will reveal this morning it plans to refer problems found with payday lenders for a full investigation by the Competition Commission, which has powers to ban or limit products and shake up whole markets.

Debt charities have accused lenders of being "out of control" Credit: Press Association

Today's decision by the Office of Fair Trading comes after a major probe into the £2 billion payday sector. The watchdog published a damning report in March, in which it outlined the evidence it had gathered of "widespread irresponsible lending".

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