OFT has published a generic letter setting out its action to date on payday loans and the action it expects firms in the sector to take. It requires an audit report from firms showing the changes they have implemented to ensure they comply with legal obligations and the minimum standards OFT expects of its licensees. The letter requires acknowledgement within 14 days and the audit report within 12 weeks. OFT warns that failure to meet OFT standards may lead to a revocation of a licence or the imposition of requirements under the Consumer Credit Act. (Source: OFT Publishes Generic Letter on Payday Loans)