OFT to investigate irresponsible lending

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: “Credi...