Any office of Fair Trading (OFT) has introduced the payday financing industry into the Competition Commission due to concerns about “deep-rooted difficulties with just how competition works”.
The OFT said it discovered that customers discovered it tough to determine or compare the complete price of payday loans.
It included that there have been obstacles to switching between loan providers whenever loans had been “rolled over”.
However the loan providers included stated they have been already changing their techniques.
‘Unaffordable’ loans
It had been stated by the OFT ended up being additionally worried that competition ended up being predicated on rate instead of price.