A 20-month study by the Competition and Markets Authority (the CMA) has revealed that most borrowers from payday loan companies do not look for better deals elsewhere.
Simon Polito, chair of the Payday Lending investigation group, said: “We think costs can be driven lower and want to ensure that customers are able to take advantage of price competition to further reduce the cost of their loans.”
The CMA’s findings come as payday lenders are under more pressure than ever before to play fair, with new rules forcing lenders to put strict caps on interest and other charges.
Other recommendations of the CMA report include:
“Our actions are aimed at making the market more competitive and further driving down costs for borrowers,” said Mr Polito.