The Competition and Markets Authority (CMA) has published a guide for payday lenders regarding the rights and obligations created by the Payday Lending Market Investigation Order 2015 (the Order). The guide covers:
- the “cost of borrowing” definition (Article 2 of the Order);
- the publication of information on an FCA-authorised payday loan price comparison website (Part 3 of the Order);
- making available a summary of borrowing to the borrower (Article 12 of the Order); and
- the content of the summary of borrowing (Article 13 of the Order).
At the beginning of the guide it is stated that Community Development Financial Institutions, which comprise registered charities, community benefit societies, and community interest companies limited by guarantee, fall outside the scope of the Order. It also states that it will be for individual organisations to seek their own legal advice on whether or not they fit into this category.
The guide does not form part of the Order and has no legal force or effect. It is intended for guidance only.
View CMA issues guide on Payday Lending Market Investigation Order 2015 to payday lenders, 3 February 2017
