CMA launches Home Credit Market Order review

CMA has formally launched a consultation on part of the Home Credit Market Investigation Order 2007. The review relates to the operation, information and management of a cash loan price comparison website. The website is aimed at making it easier for borrowers to choose the most appropriate lender, and all home credit lenders had obligations placed on them to ensure details of their loans appeared on the site. Defined “large lenders” fund the costs of the site. At the time of launch, this meant 6 lenders shared the funding costs, but now only one of those lenders is still in the market – and, even worse, the administration of Morses Club has meant that the site cannot afford to operate throughout the coming year.

As a result, CMA is reviewing the numbers of lenders and the continuing usefulness of the site, and on whether it should be amending or revoking relevant parts of the Order. It asks for views by 22 March.

Emma Radmore