OFT has announced a Market Investigation Reference of payday lending to the Competition Commission. OFT is concerned about:
- the uneven playing field created by variations in the level of regulatory compliance by payday lenders;
- lack of cost transparency, which hinders comparison, and barriers to switching at point of rollover; and
- weak price competition due to borrowers' limited access to other forms of credit and their pressing needs, which leads to competition being based on speed of approval and rollovers.