Payday loans sector competition in numbers

The Competition and Markets Authority has ruled the lack of competition in the payday loans sector:

  • Could be responsible for adding £5-£10 to the average cost of a payday loan
  • This is relative to a typical loan of £260 taken out for just over three weeks
  • A typical customer (who takes out six loans a year) could save £30-£60 per year
  • The gap between the cheapest and most expensive deals for a month-long £100 loan is more than £30

Read: Regulator to investigate payday loans competition

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Regulator to investigate payday loans competition

The Competition and Markets Authority is to investigate potential ways to increase price competition in the payday loans sector.