Comparison sites for payday lenders

It is hope the increased competition will drive down loan costs

Updated: 
File photo dated 16/12/12 of the Wonga logo as a television advert for the payday lender has been banned for breaching regulations by failing to disclose the relevant cost of borrowing. PRESS ASSOCIATION Photo. Issue date: Wednesday October 8, 2014. The television ad showed a man anxiously jotting down figures on a napkin before looking at his phone calculator and seeing the amount of �153.79. The Citizens Advice Bureau complained that the ad breached regulations by omitting the representative annual percentage rate (RAPR), as it understood that the claim

Payday lenders will be forced to provide details of their products on impartial price comparison websites so the sector's 1.8 million customers can shop around more easily for the best deal under a proposed clampdown set out by a watchdog.

Unveiling the plans, the Competition and Markets Authority (CMA) said at the moment there is little transparency over the cost of loans and competition on price is "weak".

It said that by ensuring there are accredited websites providing "impartial, relevant and accurate" information about payday loans, there will be a much greater incentive for lenders to offer low cost loans to win borrowers' business.

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