The Office of Fair Trading (OFT) is to investigate irresponsible lending practices in the UK, including the roles of lenders, brokers and intermediaries.
Changes in the Consumer Credit Act (CCA) mean the OFT must have regard to irresponsible lending when considering a business’s fitness to hold a consumer credit licence.
As part of its investigations, the OFT will be holding a consultation with business, consumer groups and other stakeholders to create clear guidance on lending practices which the OFT will consider to be irresponsible.
The consultation will consider all forms of lending which the OFT licences and all businesses involved in consumer credit, including brokers.
Ray Watson, director of consumer credit at the OFT, says: “Credit is an important part of everyday life so it is vitally important that consumers are safeguarded from irresponsible lending and that businesses have clarity about what this constitutes.
“The OFT looks forward to hearing from a wide range of businesses, consumers and representative bodies on these issues.”
Issues the OFT will consider include advertising and marketing of products, selling techniques, use of credit scoring, sale of associated products and management of defaults and arrears.
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Annuity market worth £4bn in 2017
For ‘distress’ caused
Oversees £30bn of advised and D2C assets
Less than a third of top paid employees are women
£1bn business since inception