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 Advice 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 information 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 general market trends agency and study methodology (PDF, 43 Kb) 20.8.13
- Invitation to comment on agencies invited to tender for marketing research (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
Overview of work
On 6 March 2013, the OFT published a session document aiming its provisional choice to refer the payday financing market in britain towards the CC and started a general public assessment. The assessment document identified lots of features that the OFT suspected were – either separately or perhaps in combination – preventing, restricting or competition that is distorting the forex market. The general public assessment closed on 1 might 2013.
On 27 June 2013, the OFT announced its concluding decision to mention the marketplace for payday financing in britain into the Competition Commission (CC) for an industry research. Having considered reactions towards the assessment, the OFT stayed for the view that there have been reasonable grounds for suspecting that has for the payday financing market had been preventing, limiting or competition that is distorting.
The features identified because of the OFT had been:
Variability in compliance – the OFT Compliance Review discovered varying quantities of non-compliance with appropriate guidance and law by payday lenders. The OFT suspects that people companies which spend additional time and energy in complying could be put at a competitive drawback to those that spend less.
Insufficient price transparency – the OFT has identified methods which will make it burdensome for customers to spot or compare the complete price of payday loans effortlessly in 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 – a substantial percentage of payday borrowers have actually dismal credit histories, restricted usage of other designs of credit and/or pushing needs. This could cause them to less cost delicate 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 steer clear of, limit or distort competition from feasible lenders that are alternative the idea 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 their abilities under Sections 131 for the Enterprise Act 2002 (the Act), referred the supply and of payday advances in the united kingdom towards the CC for research.