OFT sends payday lenders to regulator for investigation

The Office of Fair Trading (OFT) said it decided to make the referral because it continues to suspect that features of the market "prevent, restrict or distort competition", according to Channel 4 news. The "fundamental" problems it has found, such as loans becoming far more expensive than struggling borrowers had expected, cannot be tackled by existing laws and guidance, it said. The OFT decision is the result of a large-scale investigation into the payday loans sector, including spot checks on household names such as Wonga. The OFT said it is concerned that lenders are mainly com...