ISLE OF MAN OFFICE OF FAIR TRADING SEEKS INFORMATION FROM CONSUMERS ON PAYDAY LOANS - REMINDER

The Isle of Man Office of Fair Trading (OFT), as the registration authority under the Moneylenders Act 1991, is seeking information from local consumers about their experiences with payday loans.

Payday lending consists of the provision of small sum unsecured cash loans on a short-term basis, typically repayable on the consumer’s next payday or at the end of the month, but specifically excluding home credit (where repayments are collected at the consumer’s home). Some payday lending providers also engage in wider activities such as pawnbroking, medium-term loans, cheque cashing, gold buying, foreign currency exchange, international money transfers or buying and selling of second-hand goods.

Consumers can access payday loans in various ways. They can borrow locally from lenders who are registered with the OFT as moneylenders and they can also access payday loans through online and call centre channels from lenders in other jurisdictions. Typically these are UK based because these are the services which are heavily (and based on the UKOFT Report, often misleadingly) marketed in the UK media.

The Office would like to remind members of the public who wish to submit information that their surveys should be received no later than Friday 28 June 2013.

The OFT has created an online survey which can be accessed at https://www.surveymonkey.com/s/iomoftpaydayloansconsumers.

Chief Officer, Mike Ball explained:

“The Office has received a good number of responses so far from members of the public and I would like to take this opportunity to thank them for their valued input. This is simply a reminder to those who have had personal experiences of payday loans from whatever source, be it via local lenders or obtained online or through a call centre, or even if it was from an illegal moneylender, that we would like to hear your views. Everything you tell us will be treated in confidence. The information provided will help us understand whether the local payday loan market is functioning in the interest of consumers and ultimately inform a decision as to whether further action on the part of the Isle of Man Office of Fair Trading is needed.”

Anyone who wishes to complete the survey in paper format can obtain a copy from the OFT’s counter at Government Building, Lord Street, Douglas or by telephoning 686500.