OFT Refuses 50% of Lenders’ Applications

As the number of loans in the UK grows, the Office of Fair Trading (OFT) decided it is high time to improve the practices of so-called doorstep lenders.

In the past 18 months, the organisation refused over 50% of all applications for licences and renewals sent by lenders. Moreover, the OFT sent warning letters to 50 British lenders urging them to provide the watchdog with paperwork that proves they are complying with the Consumer Credit Act.

There are certain cases when the Office of Fair Trading made lenders provide their clients with statements that clearly show the amount of money they owe.

The move launched by the OFT is very timely as many Brits might be tempted to borrow extra money during the Christmas holidays. If there is a true need to do so, Mr. Watson of the OFT recommends shopping “around for the cheapest and most suitable credit."

A good deal might be found on online comparison sources, so try using them before actually visiting bank branches in person.