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
Sky-high interest rates of payday loans can vastly increase the amount owed. Here's some advice if you find yourself in financial trouble.
There are a few problems with the payday loan crackdown - and reform looks set to be a slow process.