UK Watchdog Requests Antitrust Review Of Payday Lenders

Law360, Los Angeles (June 27, 2013, 4:21 PM EDT) -- The U.K.'s Office of Fair Trading on Thursday asked an antitrust watchdog to review the country's burgeoning payday industry, which is valued as high as $3.35 billion, over concerns that lenders are using rollovers, additional interest and other charges to rip off borrowers.

The OFT, which revoked the licenses of three lenders earlier this year, said that roughly half of payday lenders' revenue is derived from forcing borrowers to pay surcharges. The office on Thursday asked the Competition Commission to evaluate how fast lenders are granting...
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UK Financial Services

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Financial Services Law360 UK provides breaking news and analysis on the financial sector. Coverage includes UK and European Union policy, enforcement, and litigation involving banks, asset management firms, and other financial services organizations.