Research from YouGov has shown that 16% of people in the UK have taken out credit with no intention of paying it back, and half of those would consider repeating that behaviour.
The Financial Conduct Authority (FCA) has announced new regulations for payday loan middlemen, in an attempt to crackdown on unfair and extortionate fees.
Thousands of people who are owed compensation from pay day loan company Wonga have yet to be given any money.
The Financial Conduct Authority (FCA) has announced a cap on the amount of interest that pay day loan companies can charged their customers. The new regulations announced mean that pay day loan interest rates will be capped at 0.8% of the amount borrowed a day, including fees.
MPs call for an urgent review of student loans has been rejected by the Government, despite being told the current system is under threat because of a “large potential black hole” in its figures.
Consumers are being warned about “rip off” websites for online loan brokers, who offer to find people the best pay day loan, but end up taking money without the consumers permission, and sometimes don’t even provide a loan.
The Consumer Finance Association (CFA) believe borrowers who are denied credit from payday loans under new lending rules, may actually end up worse off than they would have done if they were granted a pay day loan.
New regulations have been proposed by the Competition and Markets Authority (CMA) which would increase price competition between payday lenders and help borrowers get a better deal.The CMA would like to encourage the development of a high quality price comparison site for pay day loans.
The UK’s biggest pay day lender, Wonga, have today announced they will write off 300,000 customer loans, totalling in £220 million, after the financial conduct authority (FCA) discovered the company was not doing enough to assess customers ability to meet their repayments.
Just 1 in 5 people struggling to pay back a pay day loan have had their interest frozen and only a quarter of pay day loan customers feel like that are being treated sympathetically. Pay day lenders are still not working hard enough to improve their practices, despite regulations set by the FCA and pressure from inside the industry to clean up its act.