The headline from the Office of Fair Trading’s (OFT) Final Report (the Report) on the Payday Lending Compliance Review is that the OFT has found a widespread lack of compliance on the part of licensed businesses.
The key areas where compliance issues have been identified include:
- lenders failing to conduct adequate assessments of affordability before lending or before rolling over loans
- lenders failing to explain adequately how payments will be collected
- non-compliant advertising (including lenders’ websites)
- using aggressive debt collection practices
- not treating borrowers in financial difficulty with forbearance…
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