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News Tag: payday loans

December 17, 2012

Wonga launches Paylater loans on retailer website

by Jan Harris
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 spokesman for Wonga said: ...




November 28, 2012

Interest to be capped on payday loans

by Jan Harris
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 Lord Mitchell, the incoming Archbishop of ...




November 26, 2012

Payday loan rules come into force

by Jan Harris
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 an example of the price for ...




October 1, 2012

BBC documentary reveals payday loan concerns

by Jan Harris
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 BBC’s undercover investigation into the company, an ...




August 9, 2012

Help Loan closed after breaching money-laundering rules

by Jan Harris
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 the identities of 7,000 people and used ...




July 25, 2012

Payday loan code falls short of expectations

by Jan Harris
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 Association, the Consumer Credit Trade ...




July 24, 2012

Jobless need protection from payday loans, charity says

by Jan Harris
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 that affordability checks are carried ...




May 22, 2012

OFT warns Wonga over debt collection methods

by Jan Harris
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 also made the allegations in phone ...




May 18, 2012

Payday loans trapping people in debt

by Jan Harris
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 charged £150 for repaying a ...




February 24, 2012

OFT to investigate payday loan companies

by Jan Harris
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 end of the term – ...




February 17, 2012

Netmums says families in financial crisis

by Jan Harris
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 the findings are startling. Twenty per ...




February 7, 2012

More women experiencing debt difficulties

by Jan Harris
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, Georgina Earle, said: "Females have fought for ...




February 6, 2012

Younger generation shunning credit cards

by Jan Harris
Credit card usage falls
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 trend for consumers to shun banks and ...




January 27, 2012

Payday lenders face tighter regulations

by Jan Harris
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 £100 borrowed. If the loan is ...




January 4, 2012

Housebuyers using payday loans to pay mortgages

by Jan Harris
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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 falling into a "spiral of debt” and losing their homes, Shelter ...




December 13, 2011

OFT clamps down on payday lenders

by Jan Harris
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 November. In 2010, the number ...