Watchdog forces payday lenders to put prices on comparison site
THE COMPETITION and Markets Authority (CMA) yesterday ordered payday lenders to publish details of their loans on at least one comparison website, as the competition watchdog looks to increase transparency in the industry.
In a report on the payday lending market, the CMA said that the country’s short-term lenders “should provide customers with clear, objective and comparable information on all potential loan costs”.
Following a 20-month probe, the report held that a lack of price competition has resulted in customers footing higher costs.
The CMA said it expected at least one price comparison website to be established, but if it was not, lenders would be forced into creating one that is authorised by the FCA.