OFT will not control loan rates

The Office of Fair Trading has said it will not recommend price controls on expensive forms of short-term borrowing, such as payday loans. The watchdog has been scrutinising immediately available credit since last July, and said although such financing came at high rates, it met a need for a demographic who could otherwise not borrow money. “In a number of respects, these markets work reasonably well in that they serve borrowers not catered for by mainstream suppliers,” the OFT said.