The payday lending industry in numbers

The Office of Fair Trading (OFT) announced it has referred the payday lending industry for a full investigation by the Competition Commission.

Here are some findings about the industry:

  • 240: Number of payday lenders in the industry
  • Two billion: Estimated worth of the sector in pounds
  • 50: Number of payday lenders warned by the OFT to prove they are up to scratch
  • 12: Number of weeks lenders were given to show they had addressed the problems
  • 270: Typical size of a payday loan in pounds
  • 50: Percentage of payday lenders' revenues that the OFT found came from 28% of loans that are rolled over or refinanced at least once
  • 12 or more: Number of consecutive rollovers that some payday loan customers had in the most severe cases found by OFT inspectors
  • 5,853: The APR advertised on loans from Wonga, one of Britain's best-known payday lenders

Advertisement

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.