A report by the National Audit Office has found that regulation of the consumer credit market is providing benefits to consumers, but that the regulatory regime is not delivering value for money because it is not minimizing harm from unscrupulous trading practices. UK consumers borrowed £176 billion in 2011-12 from credit card companies, small businesses offering hire purchase arrangements and payday lenders. The NAO estimates the Office of Fair Trading saved consumers £8.60 for every £1 it spent on enforcing regulations in 2010-11 by taking action against non-compliant firms: for example, by issuing warnings and revoking licences to provide credit. During the same period, nevertheless, consumers lost at least £450 million from problems that regulation did not address, such as malpractice by firms that was not reported to the regulator. Consumers can also make poor choices themselves. For example, the OFT estimates that, in 2010, if consumers looked for the best deal within high-cost credit markets, they could save up to £120 million.....More on this story: Office of Fair Trading: Regulating consumer credit