An Isle of Man Office of Fair Trading report into the impact of pay day loan companies in the Isle of Man is due to be published in October.
Trading standard bosses reckon there are four payday loans now operating in the island.
But the report will show that most Manx customers who take out such loans use UK-based companies.
The OFT investigation looked at the operation of local providers registered under the Moneylenders Act 1991 and also loans made to island consumers by UK lenders through online and call centre channels.
It was prompted by concerns in the UK about payday loans rather than specific complaints by local consumers.
In the UK, an inquiry into competition in the payday loan market has been launched after the OFT referred the industry to the Competition Commission.
UK OFT chief executive Clive Maxwell said borrowers are suffering ‘misery and hardship’ after taking loans they cannot afford to pay back.
Following a review of compliance by payday lenders with relevant legislation and guidance, 50 leading lenders, making up 90 per cent of the market, were each given 12 weeks by the OFT to prove they have addressed areas of non-compliance identified. A total of 19 announced they were leaving the market, of which four have surrendered their licences.
Island OFT chief executive Mike Ball said: ‘We are planning to get the report published in October.
‘It contains conclusions and recommendations. It does show that to a large extent Manx consumers making use of payday loans are doing so in the UK market.
‘Whatever changes result in the UK market from the work of the OFT and Communication Commission will apply to those operations.’
As part of the Manx OFT inquiry, there was an online questionnaire which elicited 23 responses. These respondents had taken out a total of 26 loans, of which about a quarter were with local lenders.
One website called Manx Quick Cash is offering payday loans of up £1,000, promising customers they will get their cash in just 15 minutes with no paperwork. But it comes at a price - with interest charged at a rate of as much as 1,737 per cent APR.
Manx Quick Cash is not registered with the Manx Office of Fair Trading. It is operated by SDM Corporation Ltd of Fareham, Hampshire, under the trading name Lending Hub Technology, with a Consumer Credit Licence issued by the UK OFT.
There are currently 89 moneylenders registered in the island but only four offer payday loans in the Manx market.