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Payday lenders to have to share deals on comparison sites

Online payday lenders will be ordered to publish details of their products on at least one price comparison website under plans by the competition watchdog to make it easier for borrowers to shop around.

Payday lenders will have to share deals on comparison sites Credit: Rui Vieira/PA Wire

The Competition and Markets Authority (CMA) has made the finding following a investigation, lasting nearly two years, into the payday lending market, which found that a lack of price competition between lenders has led to higher costs for borrowers.

It found that most borrowers do not shop around, partly because of the difficulties in accessing clear and comparable information on the cost of borrowing and a lack of awareness of late fees and additional charges.