Expand credit unions as alternative to payday lenders, FCA urges

Non-profit cooperatives should be encouraged to disrupt high-cost lenders, says regulator The financial regulator is calling for a government review of credit union rules to give vulnerable consumers a viable alternative to payday lenders. The Financial Conduct Authority said looser laws would allow credit unions to offer a wider range of products and services to […]Read More

Monzo insists new short-term loans won't be at Wonga rates

Challenger bank offers short-term loans but says it is not targeting customers who use payday lenders Digital bank Monzo is dipping its toes into the short-term loans market a year after Wonga’s collapse, but insists it will not target customers who usually turn to payday lenders. The challenger bank formally launched loans for its 2.5 […]Read More

Romford borrowed more in payday loans than Leeds in 2018

Town took out £15m, compared with £14.7m, despite vastly smaller population, data shows The people of Romford in east London borrowed more money via payday loans in 2018 than the entire population of Leeds, according to official data. A study based on the figures named Birmingham as “the payday loan capital of the UK”, with […]Read More

Payday lenders face sharp criticism as complaints rise 130%

Financial Ombudsman Service says conduct by some firms in sector has been unacceptable The finance industry’s adjudicator has criticised the “unacceptable” behaviour of some payday lenders after a 130% rise in complaints, which it said goes beyond the practices of recently collapsed industry leader Wonga. The Financial Ombudsman Service (FOS) said the surge contributed to […]Read More

Payday lenders being 'bombarded' by spurious claims

Compensation firms said to be looking for next big earner after PPI claims expire Compensation claims management firms looking for the next big earner after the PPI scandal have been accused of bombarding the much-criticised payday lending sector with complaints that are often spurious and sometimes without the knowledge of borrowers. In some cases the […]Read More

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