Payday lending review of 50 companies down to 31 as firms retreat from the market

Updates from the Office of Fair Trading (OFT) have revealed that almost 40 per cent of payday lenders involved in its review of the industry have stopped offering these loans.

The OFT looked at the 50 largest operators in the field at the start of its review.  All were given 12 weeks to address any areas where their practices may have been non-compliant with regulations.

At the end of July the OFT said that 14 companies had subsequently stopped operating in the payday loans market, and since then that list has lengthened to 19.  Of those 19, four have surrendered their credit licences while the rest are still operating in other areas of credit business.

The 50 lenders represented some 90 per cent of the payday loans industry in the UK.

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