Responses to issues statement
- BCCA (PDF, 113 Kb) 26.9.13
- Cash Converters (UK) restricted (PDF, 64 Kb) 30.9.13
- CashEuroNetUK, LLC 7.10.13
- People Advice (PDF, 50 Kb) 26.9.13
- People information Scotland (PDF, 395 Kb) 26.9.13
- Consumer Finance Association (PDF, 73 Kb) 26.9.13
- customer Finance Association supplementary response 21.1.14
- Debt guidance Foundation (PDF, 295 Kb) 26.9.13
- DFC worldwide Corp 4.10.13
- Law Society of Scotland (PDF, 40 Kb) 30.9.13
- cash guidance Trust (PDF, 66 Kb) 26.9.13
- MYJAR (PDF, 97 Kb) 30.8.13
- StepChange financial obligation Charity (PDF, 441 Kb) 3.10.13
- Think Finance (UK) (PDF, 498 Kb) 26.9.13
- Veritec Possibilities LLC (PDF, 273 Kb) 3.10.13
- Which? (PDF, 261 Kb) 26.9.13
- Wonga Group Limited (PDF, 3.5 Mb) 4.10.13
Submissions
- Albemarle & Bond (PDF, 33 Kb) 30.8.13
- Amigo Loans Limited (PDF, 1.2Mb) 17.4.14
- Credit rating Trade Association (PDF, 28 Kb) 22.8.13
- CashEuroNetUK, LLC (PDF, 329 KB) 27.8.13
- DFC Worldwide Corp 20.8.13
- Equifax Ltd (PDF, 43 Kb) 20.8.13
- LOAF (PDF, 117 Kb) 21.1.14
- Mutual Clothing & provide Co Ltd (PDF, 326 Kb) 20.8.13
- Think Finance (UK) Ltd (PDF, 34 Kb) 20.8.13
- Wonga Group Limited (PDF, 1.1 Mb) 20.8.13
Invitation to discuss agencies invited to tender on research: Now closed
- Invitation to comment on draft study questionnaire (PDF, 223 Kb) 26.9.13
- Invitation to comment on appointment of marketing research agency and study methodology (PDF, 43 Kb) 20.8.13
- Invitation to comment on agencies invited to tender for researching the market (PDF, 41 Kb) 7.8.13
Issues statement
- Annotated issues declaration (PDF, 176 Kb) 31.1.14
- Problems statement (PDF, 115 Kb) 14.8.13
- pr release: Payday financing research – problems declaration 14.8.13
Terms of guide
- Terms of reference (PDF, 50 Kb) 27.6.13
Market research reference group
Case opened
Phase 1
Overview of work
On 6 March 2013, the OFT published an appointment document aiming its provisional choice to mention the payday financing market in britain towards the CC and exposed a consultation that is public. The assessment document identified lots of features that the OFT suspected were – either individually or perhaps in combination – preventing, restricting or competition that is distorting forex trading. The general public assessment closed on 1 might 2013.
On 27 June 2013, the OFT announced its ultimate decision to refer the marketplace for payday financing in the united kingdom towards the Competition Commission (CC) for market research. Having considered reactions to your assessment, the OFT stayed associated with the view that there have been reasonable grounds for suspecting that has of this payday financing market had been preventing, limiting or distorting competition.
The features identified by the OFT had been:
Variability in conformity – the OFT Compliance Review discovered varying quantities of non-compliance with relevant guidance and law by payday lenders. The OFT suspects that people companies which spend additional time and energy in complying could be placed at a disadvantage that is competitive those that spend less.
Insufficient price transparency – the OFT has identified techniques which will make it hard for customers to spot or compare the complete price of payday loans efficiently in the point whenever loans are applied for. The OFT suspects why these techniques undermine cost competition by making customers in general less with the capacity of constraining rates.
Cost insensitive clients – an important percentage of payday borrowers have actually woeful credit records, restricted usage of other styles of credit and/or pushing needs. This might cause them to less cost sensitive which, the OFT suspects, weakens cost competition between payday lenders.
Obstacles to switching – you can find barriers to switching between payday loan providers or to alternate items or choices in the true point of rollover. The OFT suspects that these obstacles benefit incumbent loan providers and give a wide berth to, limit or distort competition from feasible lenders that are alternative the idea of rollover.
Market concentration – the OFT suspects that high concentration and obstacles to entry and expansion exacerbate the avoidance, limitation or distortion of competition as a result of the features identified above.
Action
The OFT, in workout of the capabilities under Sections 131 sites associated with the Enterprise Act 2002 (the Act), referred the supply as well as payday advances in britain towards the CC for research.