Regulatory body hasn’t done sufficient to tackle ‘predatory’ companies, committee reports

Timid and regulators that are ineffective neglected to tackle “predatory” payday-loans businesses which leave clients with “out of control” debts, a committee of MPs has warned.

It accuses unscrupulous organizations in the “shabby end” associated with credit market of focusing on susceptible visitors to sign up for loans which quickly mount as a result of high interest levels – and soon become impractical to repay.

The Public Accounts Committee is scathing concerning the workplace of Fair Trading’s (OFT) failure to access grips aided by the unsavoury techniques of some organizations, which cost their victims at the least £450m a 12 months. Its president, Margaret Hodge, accused the watchdog of being “ineffective and fearful in the extreme” and of passively looking forward to customers’ complaints before acting.