CMA has issued its final order on the payday loan market. The order requires:
- online payday lenders to post their product details (including things like loan term, loan amount, and overall loan costs) on at least one FCA-authorized price comparison website; and
- online and department store payday lenders to provide existing customers with a summary of their cost of borrowing that shows the total cost of their most recent loan, as well as the cumulative cost of their borrowing from that lender over the course of the last 12 months and the late repayment affected their cost of borrowing.
The CMA commended the steps taken by the FCA to advance its other recommendations, including:
- improving the disclosure of late fees and other charges;
- help customers shop without affecting their access to credit;
- improving real-time data sharing between lenders and credit reference agencies; and
- ensure that lead producers explain to customers much more clearly how they operate.
(Source: CMA issues final payday loan order)