Policing of payday lenders is timid, say MPs

A regulator has been "ineffective and timid" in tackling rogue payday and door-to-door lenders, MPs have said.

Unscrupulous behaviour by the "shabby end" of the UK consumer credit market cost consumers at least £450m a year, the Public Accounts Committee said.

It criticised the Office of Fair Trading (OFT) for failing to act quickly to stop lenders targeting vulnerable people.

But the OFT said it had taken strong action while facing legal restrictions

Kevin Peachey reports.