A report by the Public Accounts Committee (PAC) on the regulation of consumer credit criticises OFT, calling its regulation ineffective and timid. It accuses OFT of not understanding the markets and investing too little money in regulation. It notes OFT’s recent actions in respect of payday lending and says it wants this to be the start of a “genuine step up” in approach. It says it is encouraged by what it has heard about the emerging plans of the Financial Conduct Authority (FCA) but says it does not expect to wait until 2014 to see meaningful change in the regulatory regime. It invites OFT and FCA to address plans for immediate action in their response to the report. OFT expressed disappointment at the report, commenting on OFT’s recent actions not just in relation to payday lenders but also in its action in revoking or refusing licences for credit brokers and debt management firms. It said the PAC had not recognised the constraints of the current legislation, which the National Audit Office had noted in its report on which the PAC report was based. (Source: PAC Reports on Consumer Credit and OFT Reacts to PAC Report)