OFT's action on payday lenders 'ineffective and timid', say MPs

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The Office of Fair Trading (OFT) has been criticised by MPs for being "ineffective and timid in the extreme" over its failure to tackle loan sharks and payday lenders.

The Telegraph reports the Public Accounts Committee (PAC) has accused the watchdog of failing to properly regulate or even understand the growing market. MPs said the watchdog has been "passively waiting for complaints from customers before acting". Committee chairman Margaret Hodge said the OFT had "never given a fine to any of the 72,000 firms in this market" and had "very rarely revoked a company's licence." The PAC report found regulatory spending on payday loans was "paltry" compared to other markets. Hodge said: "It could easily have increased its fees, especially to larger credi...

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