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However, the private student loan sector does not play by the same rules.
Martin Wheatley, incoming chief executive of the FCA, said there was clearly growing concern about "abusive practices" in the payday loan sector.
The responsibility for regulation of consumer credit – including the payday loan sector – will move from the OFT and come under the jurisdiction of the new regulator Financial Conduct Authority (FCA) from 2014.
But a number of experts who deal with complaints about the payday loan sector have told the Guardian that the affordability tests carried out by many of these other lenders are as bad or worse than Wonga's.
Just days after Google proudly announced it had banned the morally dubious payday loan sector from its advertising platforms, its parent company has been revealed to be a repeat investor in a payday loan lender.
The short-term loan sector, which is worth more than £2bn a year, was referred to the commission in 2013 following an investigation by the Office of Fair Trading.
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In addition to watching the mortgage-backed security markets, we should pay close attention to the credit card and auto loan sectors.
"Now is probably a really good time to start looking at jumbo rates if you are somebody who has been shopping for a jumbo mortgage," said Cameron Findlay, LendingTree chief economist, who attributed to the narrowing spread to lenders viewing the default rates in the higher-loan brackets as improving or less risky than in the lower-loan sector.
The ban is the latest in a string of troubles for the lender and the payday loans sector more widely.
A second investigation into the payday loans sector is also under way by the Financial Conduct Authority which is examining rollover loans and some of the exorbitant interest rates charged.
However, a regulatory clampdown on the payday loans sector – led by a cap on the overall cost of loans – appears to be benefitting vulnerable borrowers.
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