Tag: payday loans

Wonga launches Paylater loans on retailer website

Wonga launches Paylater loans on retailer website

Payday loan company Wonga has launched a new Paylater service on furniture firm Cotswold Company’s website. The service, which allows customers to “buy now, pay later” will be introduced on other retailers’ sites in the near future. Although the Paylater branding is similar to Wonga’s, the Wonga name only appears in the small print. A […]

December 17, 2012 More
Interest to be capped on payday loans

Interest to be capped on payday loans

The government has agreed to give the incoming Financial Conduct Authority the power to take action against unscrupulous lenders. In the face of defeat on a proposed amendment to the Financial Services Bill it has also agreed to allow the interest rates charged for payday loans to be capped. The cross-party amendment was backed by […]

November 28, 2012 More
Payday loan rules come into force

Payday loan rules come into force

A new code of practice for payday loan companies came fully into effect today. The code, devised by the Consumer Finance Association (CFA), is designed to curtail practices that could cause people to fall further into debt. People applying for a loan must be given clear information about the way a payday loan works and […]

November 26, 2012 More
BBC documentary reveals payday loan concerns

BBC documentary reveals payday loan concerns

A documentary by the BBC, to be screened tonight, claims that payday loan company Provident Financial has made multiple loans to a vulnerable woman diagnosed with mental health problems. The Panorama documentary, Debt on the Doorstep, claims that Provident Financial loaned thousands of pounds to the woman, who has been diagnosed with schizophrenia. During the […]

October 1, 2012 More
Help Loan closed after breaching money-laundering rules

Help Loan closed after breaching money-laundering rules

Payday Loan company MCO Capital has been closed down by the Office of Fair Trading (OFT) and fined £544,000 after failing to check the identity of its borrowers. The firm, which traded as Help Loan, was targeted by criminals and cheated of more than £1.5m by the fraudsters due to its negligence. The criminals stole […]

August 9, 2012 More
Payday loan code falls short of expectations

Payday loan code falls short of expectations

A new code of practice for payday lenders has been launched but consumer groups say it amounts to mere rebranding and doesn’t go far enough to protect borrowers. The code was agreed following lengthy negotiations between the payday loan industry and government. Four trade bodies – the Consumer Finance Association, the British Cheque and Credit […]

July 25, 2012 More
Jobless need protection from payday loans, charity says

Jobless need protection from payday loans, charity says

Prior to the Payday loan industry’s launch of a new code of conduct this week, the Consumer Credit Counselling Service (CCCS) is calling for more protection for the unemployed. The charity warns that the number of jobless people struggling to repay short-term, high-interest payday loans is increasing. It wants the payday loan industry to ensure […]

July 24, 2012 More
OFT warns Wonga over debt collection methods

OFT warns Wonga over debt collection methods

Payday loan company Wonga used aggressive and misleading methods to collect debts from customers, the Office of Fair Trading (OFT) has found. Wonga sent letter and emails to certain customers suggesting they had committed fraud and threatening to report them to the police if they did not act in the way Wonga suggested. The company […]

May 22, 2012 More
Payday loans trapping people in debt

Payday loans trapping people in debt

Payday loans have soared in popularity over the past few years, but consumer group Which? warns they are trapping people in a ‘downward spiral of debt’. Problems start to escalate if people are unable to pay back their loan on time, with some companies charging excessively high penalties for late repayments. Which? discovered that Quid24.com […]

May 18, 2012 More
OFT to investigate payday loan companies

OFT to investigate payday loan companies

The Office of Fair Trading (OFT) is to investigate Payday lenders over concern that they may be encouraging people to take out loans without checking that they can afford to repay them. Payday lenders offer short-term loans at very high interest rates and while these can be affordable if they are paid back at the […]

February 24, 2012 More
Netmums says families in financial crisis

Netmums says families in financial crisis

The economic downturn, the rising cost of living and the government’s austerity programme have pushed over 70 per cent of UK families to the brink of poverty, according to online parenting organisation Netmums. The organisation surveyed over 2,000 of its members this month to find out how they are coping in the economic downturn and […]

February 17, 2012 More
More women experiencing debt difficulties

More women experiencing debt difficulties

Women in Debt, which offers female-focused debt advice, has warned that the number of UK women facing serious debt has grown significantly over recent years. The organisation believes that more women will need advice on solving debt problems in the future because they are building up an unsustainable level of indebtedness. Women in Debt’s director, […]

February 7, 2012 More
Younger generation shunning credit cards

Younger generation shunning credit cards

Consumers are shunning credit cards in favour of debit cards, digital payment and payday loans, according to a new report from PricewaterhouseCoopers (PwC). Although UK households paid off some unsecured debts in 2011, the average debt was around £7,900 at the end of the year. The Ernst & Young Item Club has also reported a […]

February 6, 2012 More
Payday lenders face tighter regulations

Payday lenders face tighter regulations

The government’s Financial Services Bill, which was presented to Parliament today, could see Payday loan companies facing much tighter regulation. Payday loans are designed to provide emergency funds for a short period of time. Amounts of between £50 and £1,000 are offered on weekly or monthly terms for a charge of around £30 for every […]

January 27, 2012 More
Housebuyers using payday loans to pay mortgages

Housebuyers using payday loans to pay mortgages

In the last year around seven million UK house buyers have been forced to use payday loans or unauthorised overdrafts to meet their mortgage repayments, according to housing charity Shelter. With both of these sources of finance potentially carrying extremely high interest rates, this represents one in seven Britons who could be at risk of […]

January 4, 2012 More
OFT clamps down on payday lenders

OFT clamps down on payday lenders

The Office of Fair Trading (OFT) is increasing its scrutiny of payday loan companies after the number of complaints about them soared. In a report to the Government, the OFT revealed that the number of complaints received by helpline Consumer Direct about payday loan companies more than doubled to 1,535 in the 11 months to […]

December 13, 2011 More