Responses to issues statement
- BCCA (PDF, 113 Kb) 26.9.13
- Cash Converters (UK) restricted (PDF, 64 Kb) 30.9.13
- CashEuroNetUK, LLC 7.10.13
- People Advice (PDF, 50 Kb) 26.9.13
- People information Scotland (PDF, 395 Kb) 26.9.13
- Consumer Finance Association (PDF, 73 Kb) 26.9.13
- customer Finance Association supplementary response 21.1.14
- Debt guidance Foundation (PDF, 295 Kb) 26.9.13
- DFC worldwide Corp 4.10.13
- Law Society of Scotland (PDF, 40 Kb) 30.9.13
- cash guidance Trust (PDF, 66 Kb) 26.9.13
- MYJAR (PDF, 97 Kb) 30.8.13
- StepChange financial obligation Charity (PDF, 441 Kb) 3.10.13
- Think Finance (UK) (PDF, 498 Kb) 26.9.13
- Veritec Options LLC (PDF, 273 Kb) 3.10.13
- Which? (PDF, 261 Kb) 26.9.13
- Wonga Group Limited (PDF, 3.5 Mb) 4.10.13
- Albemarle & Bond (PDF, 33 Kb) 30.8.13
- Amigo Loans Limited (PDF, 1.2Mb) 17.4.14
- Credit rating Trade Association (PDF, 28 Kb) 22.8.13
- CashEuroNetUK, LLC (PDF, 329 KB) 27.8.13
- DFC Worldwide Corp 20.8.13
- Equifax Ltd (PDF, 43 Kb) 20.8.13
- LOAF (PDF, 117 Kb) 21.1.14
- Mutual Clothing & provide Co Ltd (PDF, 326 Kb) 20.8.13
- Think Finance (UK) Ltd (PDF, 34 Kb) 20.8.13
- Wonga Group Limited (PDF, 1.1 Mb) 20.8.13
Invitation to discuss agencies invited to tender on research: Now closed
- Invitation to comment on draft study questionnaire (PDF, 223 Kb) 26.9.13
- Invitation to comment on visit of researching the market agency and study methodology (PDF, 43 Kb) 20.8.13
- Invitation to comment on agencies invited to tender for researching the market (PDF, 41 Kb) 7.8.13
- Annotated issues declaration (PDF, 176 Kb) 31.1.14
- Dilemmas declaration (PDF, 115 Kb) 14.8.13
- pr release: Payday financing research – problems declaration 14.8.13
Terms of guide
- Terms of reference (PDF, 50 Kb) 27.6.13
Market research guide group
Summary of work
On 6 March 2013, the OFT published a session document aiming its provisional choice to mention the payday financing market in the united kingdom towards the CC and started a consultation that is public. The assessment document identified lots of features that the OFT suspected were – either separately or in combination – preventing, restricting or competition that is distorting the forex market. The consultation that is public on 1 might 2013.
On 27 June 2013, the OFT announced its ultimate decision to refer the marketplace for payday financing in britain towards the Competition Commission (CC) for an industry investigation. Having considered responses into the assessment, the OFT stayed associated with the view that there were reasonable grounds for suspecting that has for the payday financing market had been preventing, limiting or competition that is distorting.
The features identified by the OFT had been:
Variability in conformity – the OFT Compliance Review discovered varying degrees of non-compliance with appropriate legislation and guidance by payday lenders. The OFT suspects that people companies which spend more hours and effort in complying could be put at a competitive drawback to those that spend less.
Insufficient price transparency – the OFT has identified techniques which will make it problematic for customers to spot or compare the cost that is full of loans efficiently during the point when loans are applied for. The OFT suspects why these methods undermine cost competition by making customers in general less with the capacity of constraining costs.
Cost insensitive clients – an important percentage of payday borrowers have actually woeful credit records, restricted use of other types of credit and/or pushing needs. This could make sure they are less cost sensitive which, the OFT suspects, weakens cost competition between payday lenders.
Obstacles to switching – you can find obstacles to switching between payday loan providers or to alternate items or choices during the point of rollover. The OFT suspects why these obstacles benefit incumbent loan providers and give a wide berth to, limit or distort competition from feasible lenders that are alternative the purpose of rollover.
Market concentration – the OFT suspects that high concentration and obstacles to expansion and entry exacerbate the avoidance, limitation or distortion of competition due to the features identified above.
The OFT, in workout of its abilities under Sections 131 of this Enterprise Act 2002 (the Act), referred the supply as well as pay day loans in the united kingdom into the CC for research.