OFT reacts to UK payday loan cap

Tue, 26 Nov 2013

The Office of Fair Trading says it will follow a new UK law capping the interest on payday loans.

Legislation is being introduced by the UK Government to hold payday lenders to account - with controls on charges including arrangement and penalty fees.

The OFT says that whilst payday lenders have a role to play in providing short-term credit it’s vital that consumers have options beyond legal and illegal loan sharks.

Chief officer Mike Ball says as it stands a lot of locals use the UK providers: