CMA publishes payday lending report: CMA has published its final report on payday lending. It has confirmed that online payday lenders must publish details of their products on at least one authorised price comparison website (PCW). It says lenders will have to set up an authorised PCW if one or more do not otherwise emerge. CMA has recommended to FCA that authorised PCWs should provide customers with clear, objective and comparable information on all potential loan costs, in particular the total amount payable, and allow customers to compare different loans by searching easily on the most relevant features such as loan amount and duration. CMA also recommends FCA:
- improves the disclosure of late fees and other additional charges;
- helps customers to shop around without unduly affecting their ability to access credit;
- improves real-time data sharing between lenders and credit reference agencies; and
- ensures that lead generators explain how they operate much more clearly to customers.
Online and high street payday lenders will also have to give customers a summary of their cost of borrowing so borrowers can see the total cost of their most recent loan, the cumulative cost of their borrowing with that lender over the previous 12 months, and how late repayment affected their cost of borrowing. (Source: CMA Publishes Payday Lending Report)