London, England – According to the BBC, the Office of Fair Trading (OFT) report dated 15 June 2010 recognises the value provided by payday lenders.  The short-term lending “…markets work reasonably well in that they service borrowers not catered for by mainstream lenders,” says the OFT.

“The recognition of the important service we provide is very encouraging,” says Alex King, Managing Director of QuickQuid, one of Britain’s leading short-term lenders.  “In essence, the OFT acknowledges that lenders like QuickQuid provide an important and fair service for Britons in need of short-term lending solutions.”

One of the recurring proposals brought up by payday opponents to supposedly protect consumers is a rate cap.  According to The Guardian, the OFT report was clear that a rate cap would likely have the opposite effect.  Consumers will have dramatically less options as some lenders might exit the market, leading to reduced competition and higher fees for consumers who rely on payday loans for emergency situations.

As the short-term lending industry stands today, it is working reasonably well; consumers can quickly and easily access the money they need for urgent and unexpected expenses.  According to the BBC, the OFT says that payday loans meet a need for people who could not otherwise borrow cash from more traditional sources.

For more information, contact Andrew LaPointe at 0808 101 7453 or media@quickquid.co.uk.

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