Competition and Markets Authority closes investigation by ordering payday lenders to be up front about costs

Payday lenders will be forced to compete on price so that borrowers are not forced into rip-off loans under new rules introduced by the competition regulator. The Competition and Markets Authority published the results of a 20-month investigation into short-term lenders on Tuesday, outlining how it will let consumers shop around. The regulator said it expected costs to fall in response to the rules. Under the rules, payday lenders will have to publish their prices on at least one price comparison website, and be up front about late fees and other hidden charges. They will also be forced to provide borrowers with a clear summary of how much they are borrowing. The regulator will now pass its orders to the Financial Conduct Authority (FCA) to implement them from this summer.....Read more here