OFT mulls rules for payday lenders in Isle of Man

Tynwald buildings

Tynwald buildings

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Consideration is being given to regulation of payday lenders and a report is due soon from the island’s Office of Fair Trading.

Proposed regulation in the UK would place a variety of restrictions on payday lenders.

The rules would mean, for example, loans could only be rolled over twice, they must be affordable and payday lenders would have to provide warnings on advertisements and give information on free advice.

Office of Fair Trading chairman David Quirk MHK (Onchan) confirmed the issue was being looked at and a report is to be published next month.

‘It will, amongst other things, consider whether there is any need to tighten existing rules in relation to the three local companies registered pursuant to the Moneylenders’ Act 1991 who currently offer consumer payday-style lending in the island,’ he said.

He added most Manx people who used payday loans were customers of the UK market using online or call centre services and would therefore benefit from the proposed UK regulations.

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