UK regulator, OFT toughens stance against irresponsible lending practices

According the UK body the Office of Fair Trading (OFT), lenders must stop misleading consumers and instead empower them to make more
 informed decisions.

In a bid to check creditors from indulging in irresponsible lending practices, the OFT has issued guidelines for both businesses and consumers.
Accordingly the guidance states creditors should:

Refrain from misleading or oppressive behaviour in advertising, selling or seeking to enforce a credit agreement

Assess in a reasonable manner borrowers' capacity to make repayments in a suitable manner

Explain salient features of the credit agreement to empower the borrower to be able to make an informed choice.

Monitor borrower's repayment record throughout the course of the agreement and offer assistance as required. They are also expected to treat borrowers fairly and with forbearance if they experience difficulties.