Payday loan firms have been told to change their behaviour after the Office of Fair Trading (OFT) found evidence of ‘widespread irresponsible lending’. The OFT is giving the biggest 50 firms 12 weeks to change their practices, or they risk losing their licences. It also plans to refer the market to the Competition Commission, after it found ‘deep-rooted’ problems in how payday loan companies compete. In response, the loans industry said it was already changing its operations. The Government has also announced plans to ‘weed out rogue lenders’ and place further controls on the way they are allowed to advertise. In addition, it said the high rates of interest charged by payday lenders could make the consequences of irresponsible lending ‘particularly acute’. (See also Prayer Alert 50-2012)

Pray: that the OFT’s pressure and the Government's move to exert controls will restrict irresponsible lending. (Pr.28:25)

More: http://www.bbc.co.uk/news/business-21683739