It is very welcome news indeed that the OFT have finally sought powers to shutdown payday lenders quickly and easy if they are found to be in breach of the guidance on responsible lending.
Given its size and capacity, it has previously been too costly and time consuming for the OFT to have any proper teeth in its regulation.
Further, with an amendment to the financial services bill not being carried earlier this year, which would give the new financial conduct authority (FCA - which soon take over the OFT) more powers over payday lenders, it was looking bleak for those who call for tighter regulation.
But this is only one step. More work should be carried out on who ultimately qualifies for consumer credit licenses in the first place, and consideration be given to cap the cost of credit.
Carl is the author of the recently published Loan Sharks.