The European Commission could fine loan companies after a review found that many of their websites mislead customers by providing inccorect information and costs.
The European Commission stated that 38 out of the 47 loan websites it investigates contained 'some irregularities', but not name th companies. This is part of a European wide investigation, the UK side of which is being run by the Office of Fair Trading (OFT).
"The main findings were that sites did not comply with the consumer credit advertising regulations; they omitted key information about the products offered; and gave misleading information on costs, " a spokesman for the OFT said.
The spokesman said the investigation had been focused on loans for those who have poor credit ratings "where the risk of financial hardship to people may be higher". He said: "The investigation did not cover the whole consumer credit market."
It is believed that the OFT will launch its own investigation into payday loans in the near future to see if they comply with the standards set out in the OFT's Irresponsible Lending Guidance.
