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CMA’s action on payday lending ‘good news for the consumer’

The Competition and Markets Authority (CMA) has today published  its report following a 20-month investigation into competition in the payday lending sector, announcing new measures to increase competition and transparency.

Joanna Elson OBE, chief executive of the Money Advice Trust, the charity that runs National Debtline, said:

"This is good news for the consumer. More competition and transparency in the payday loan market will ensure that the FCA's cap on the cost of credit remains precisely that - a cap, not the norm. This is a good example of regulators working together to bring about meaningful change in this sector.

"However, these improvements in the way that payday loans are regulated must not dilute the core message that payday lending remains an extremely expensive way to borrow. Anyone who finds themselves turning to high cost credit to make ends meet would be far better served by seeking free debt advice, to resolve the underlying causes of their financial difficulty, instead."

 

 
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