A future of affordable and sustainable credit is possible
A bad day for Wonga provides a valuable opportunity to reform the credit industry
A bad day for Wonga provides a valuable opportunity to reform the credit industry
Despite new regulation, the big lenders will remain.
The proposed cap means that if someone pays back a £100 loan within 30 days they would pay a maximum of £24 in charges.
But it could be just the tip of the iceberg, says Financial Ombudsman Service.
If the regulator had been firmer before then some borrowers might not have been treated unfairly.
Encouraging the FCA to be even more tougher with the industry is of vital importance.
A new report has called payday lending the most harmful type of debt that an individual can obtain.
The Archbishop Justin Welby is back in the news today after it emerged that he met with Errol Damelin, the chief executive of payday lender Wonga.com, to tell him he wants to put the company out of business.
Labour-run Plymouth council has sought measures to stop payday lending companies such as Wonga and The Money Shop from advertising on its billboards and bus stops – a move that will sit alongside agreements reached with city commercial partners to block adverts on the council’s computer network, including in libraries.
The chorus of disapproval is starting to become deafening on payday lending. However Canada shows that another model of payday lender regulation is possible.