News

Irresponsible' lending probed

Irresponsible' lending probed

• Click here to see how we can find you a loan
• Use our Loan calculator

 

The Office of Fair Trading (OFT) has announced that it is launching an investigation into the practice of irresponsible borrowing.

It said this consultation into the issue has come about as part of its new remit to tackle the subject following the introduction of the updated Consumer Credit Act.

The plan is that the consultation will result in clear guidance for lenders, brokers and others as to what actually constitutes irresponsible lending.

OFT director of credit Ray Watson said: "Credit is an important part of everyday life so it is vitally important that consumers are safeguarded from irresponsible lending and that businesses have clarity about what this constitutes."

Such a development may be good news for those who are concerned about debt incurred through sources such as loans and credit cards.

Earlier this week This is Money reported that increases in loan rates by a number of lenders has prompted some consumers to seek money from unauthorised doorstep lenders.

Your home may be repossessed if you do not keep up repayments on your mortgage.

The news articles on our website are produced by Adfero Ltd and do not in any way represent the thoughts and opinions of anyone associated with mdnationwide limited. They are purely here for the reader to obtain the latest news and breaking news from the world of finance.