'Payday' loans firms set for OFT probe

Aug 5 2008

FIRMS that offer shortterm "payday" loans are to be investigated by the Office of Fair Trading.

Debt advice groups want government action over the loans, which they say charge interest rates of up to 2000 per cent annually.

However, the firms - who are already regulated and licensed - insist they are responsible and offer a valuable service.

"Payday" loans involve the lender advancing the customer cash in return for a post-dated cheque.

Source:
http://www.sundaymail.co.uk