On 13 August 2015, the Competition and Markets Authority (CMA) announced that it has made the Payday Lending Market Investigation Order 2015, which comes as a result of the CMA’s market investigation into the supply of payday lending in the UK. The Order prohibits online payday lenders from supplying payday loans unless the lender has published information on a payday loan price comparison website authorised by the FCA. In addition, with effect from 13 August 2016, payday lenders will be prohibited from supplying payday loans unless customers are provided with a summary of the cost of borrowing. The Order is intended to increase price competition between payday lenders and help borrowers.
The CMA is also welcoming steps taken by the FCA, particularly in relation to improving the disclosure of late fees and other additional charges, helping customers to shop around without unduly affecting their ability to access credit and improving real time data sharing between lenders and credit reference agencies.