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"
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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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.