....as Government aims for industry overhaul

Payday lenders are delaying the Government’s efforts to overhaul the industry by failing to release vital information on borrowers. Critics told Financial Mail that some lenders, dubbed legal loan sharks, are not passing debtors’ details to credit reference agencies. This is scuppering chances of an industry-wide monitoring system that would allow lenders to spot consumers who are deep in debt.

The Centre For Responsible Credit estimates that more than a third of loans might not be registered with agencies like Experian and Equifax.

Unlike mainstream banks, payday firms are not bound by Financial Services Authority rules obliging them to share information with credit reference agencies. Paul Lynam, chief executive at Secure Trust Bank and a vocal critic of payday loan firms, said tracking a borrower’s short-term debt is a ‘fundamental problem’......Read more here