Moneylenders that want a mere 4,214%
A usury law could drive the vulnerable into the arms of loan sharks. Regulation makes more sense, writes John Plender
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The fast cash trap
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‘Payday lenders’ from the US, attracted by the UK’s lax regulatory environment, are filling demand for credit from low income borrowers abandoned by high street banks
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About 1m take out payday loans
Shelter, which commissioned a YouGov survey on payday loans, said the “shocking” findings revealed the spiral of debt people were falling into
Payday loan complaints double
Concern mounts about the high costs and aggressive marketing practices of controversial short-term credit
Payday lenders warned of clampdown
Minister hopes to limit companies’ ability to collect money direct from customers’ bank accounts
Government acts on payday loan worries
The government is in discussions with the industry to ensure that the vulnerable are protected from unscrupulous lending practices
Calls grow for clamp on payday lenders
Critics have hit out amid sings that an increasing number of low-income Britons are turning to these high-cost loans to combat financial problems
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Interactive
Payday lenders’ growth on deprived high streets
Interactive database shows the growth of payday lenders and pawnbroking businesses since 2008 alongside the decline in bank and building society branches, most notably in deprived areas
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Comment and analysis
Is payday lending really wrong?
Payday loans may be controversial but, as Tim Harford points out, they can be less expensive than an unauthorised overdraft
Rate curbs would trigger loan shark feeding frenzy
The growth of payday lenders reflects tough economic conditions and the withdrawal of credit to poor Britons by our incredible shrinking banks
Tighten rules for legal loan sharks
The current system of licensing is inadequate; a ban would drive people to illegal lenders, so payday loan industry must become more transparent
