Payday lenders to be investigated by OFT

5corpio started a blog post Payday lenders to be investigated by OFT
24 February 2012, 10:34

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Payday lenders to be investigated by OFT

Payday lenders will be investigated by a regulator amid concerns that customers are not being treated fairly. The review by the Office of Fair Trading (OFT) will involve visits to 50 lenders and could result in enforcement action. It is concerned that firms may have been giving out loans to borrowers who are unlikely to be able to repay. There have also been worries about lenders allowing customers' debts to spiral by rolling them over. Despite the negative publicity surrounding payday loan firms, the OFT has previously said that they and other high-cost credit businesses - such as pawn brokers or home-credit lenders - should not have their interest charges restricted....Read more here--: BBC News - Payday lenders to be investigated by OFT
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- #2
  
  5corpio commented
  
  24 February 2012, 17:01
  
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  Following today’s announcement by the Office of Fair Trading (OFT) that it is commencing an extensive review of the payday lending sector, the Consumer Finance Association (CFA) has responded by welcoming the announcement. John Lamidey, chief executive of the CFA, said: “The payday lending industry has faced a great deal of criticism in recent times and we fully understand and agree with the OFT’s concerns around some of the practices adopted by some players in the market.
  
  “The CFA represents some of the largest payday lenders and we believe that our Code of Conduct embodies best practice and sets the standard for the industry. Nonetheless, our Code is currently being enhanced to include many more consumer protections and this is due to be launched very soon. “We welcome the OFT’s review and the CFA and its members are looking forward to working proactively with them to identify areas to enhance consumer protection”....Read more here --: CFA welcomes OFT Review into Payday lending
- #3
  
  5corpio commented
  
  25 February 2012, 08:13
  
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  Payday lender MiniCredit apologises over 'threats'
  
  A payday lender has apologised to customers who received emails threatening to contact their employers if they did not settle their debts. The National Debtline says it heard of numerous cases where MiniCredit acted in an overly aggressive manner. MiniCredit says it has taken steps to ensure it does not happen again The Office of Fair Trading (OFT) says companies should not act in a way that is likely to cause debtors public embarrassment. 27-year-old Emma Burgess from Manchester took out several payday loans last year when she had to move out of a shared flat and needed money to cover the cost of new accommodation. When she found herself unable to pay back her first payday loan she borrowed more cash from another lender to pay it off....Read more here---: BBC News - Payday lender MiniCredit apologises over
- #4
  
  5corpio commented
  
  27 February 2012, 18:29
  
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  Payday loans firm Minicredit has changed the way it handles customer complaints following an investigation by the Financial Ombudsman Service (FOS). Minicredit, which last year issued more than 100,000 loans in the UK, has also taken on 15 more call centre staff and changed its IT system after the FOS upheld four complaints against it. Compliants to the FOS covered the way it dealt with people having problems repaying loans and accusations it threatened to contact employers if they didn’t pay.....Read more here--: Payday firm improves IT after FOS ruling
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Payday lenders to be investigated by OFT

Payday lenders to be investigated by OFT