IPPR proposes payday-loan levy to help fund affordable lending

Payday loans

Thinktank report suggests not-for-profit lenders could be sited in Post Office branches and compete with firms such as Wonga

A one-off levy of £450m on Britain’s £180bn consumer credit industry could create enough affordable lenders to take on Britain’s legal loan sharks, according to a report from the centre-left thinktank IPPR.

The proposals, which are being considered by Labour, say that as well as a legal cap on the total cost of credit, Britain needs a new generation of not-for-profit affordable lenders with enough capital liquidity and geographic coverage to compete with firms such as Wonga, QuickQuid and Payday Express.

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