Payday loans 'lack competition'

%VIRTUAL-SkimlinksPromo%Payday lenders could be forced to spell out the overall cost of defaulting on a loan more clearly up front and an independent price comparison website could be set up to help people shop around after a watchdog found an "absence of price competition".

The Competition and Markets Authority (CMA) suggested the possible remedies after finding that a payday customer could typically save around £30 to £60 per year if the market were more competitive.