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 guidance Scotland (PDF, 395 Kb) 26.9.13
- Consumer Finance Association (PDF, 73 Kb) 26.9.13
- customer Finance Association response that is supplementary
- 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 information Trust (PDF, 66 Kb) 26.9.13
- MYJAR (PDF, 97 Kb) 30.8.13
- StepChange Debt 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 Global 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
- Problems 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 investigation guide group
Overview of work
On 6 March 2013, the OFT published an appointment document aiming its provisional choice to mention the payday financing market in britain towards the CC and launched a general public assessment. The consultation document identified lots of features that the OFT suspected were – either separately or in combination – preventing, restricting or competition that is distorting forex trading. The general public assessment closed on 1 might 2013.
On 27 June 2013, the OFT announced its decision that is final to the marketplace for payday financing in britain into the Competition Commission (CC) for market research. Having considered reactions to your assessment, the OFT stayed regarding the view that there have been reasonable grounds for suspecting that features for the payday financing market had been preventing, limiting or distorting competition.
The features identified by the OFT had been:
Variability in conformity – the OFT Compliance Review discovered varying degrees of non-compliance with appropriate guidance and law by payday lenders. The OFT suspects that people organizations which spend more hours and energy in complying could be put at a competitive disadvantage to those that spend less.
Insufficient price transparency – the OFT has identified techniques which will make it burdensome for customers to determine or compare the cost that is full of loans effortlessly during the point whenever loans are applied for. The OFT suspects why these techniques undermine cost competition by making customers in general less able to constraining rates.
Cost insensitive clients – an important percentage of payday borrowers have actually woeful credit records, limited use of other designs of credit and/or pushing needs. This might 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 in the point of rollover. The OFT suspects why these obstacles benefit incumbent loan providers and avoid, limit or distort competition from feasible lenders that are alternative the idea of rollover.
Market concentration – the OFT suspects that high concentration and barriers to expansion and entry exacerbate the avoidance, limitation or distortion of competition as a result of the features identified above.
The OFT, in exercise of its abilities under Sections 131 of this Enterprise Act 2002 (the Act), referred the supply as well as payday advances in britain towards the CC for research.