The Office of Fair Trading has confirmed 10 payday lenders have exited the market following its crackdown in June which required 50 lenders to prove within 12 weeks that they were compliant with the law and OFT guidance.

Of the 50 lenders which were written to, 28 responded, ten of which have dropped out of the payday lending market.

A spokesman from the OFT confirmed that two of the ten companies had surrendered their licences; the Payday Loan Company, trading under numerous names including Cashnet, Telecash and Payday Co, and Hamilton Management Co, trading as Anfield Cheque Cashing Centre.

The remaining eight were still trading in some capacity and therefore could not be named.

The review in June involved the referral of the entire market for payday lending in the UK to the Competition Commission because of concerns the OFT had about deep-rooted problems with the way competition works.

In addition to the 50 lenders written to, the OFT has also revoked the licences of three other payday lenders since the review and another has surrendered its licence.

The three licences revoked belonged to MCO Capital, B2B International UK and Loansdirect2u.com.

The spokesman added that formal investigations had been opened into three payday lenders but he said he could not comment further on these at this stage.

The regulation of the payday loan industry is due to be handed over to the Financial Conduct Authority in April next year.