Will the FCA’s cap on payday lender charges lead to an upsurge in the use of loan sharks? John Lamidey, senior partner at Arminius Associates and former chief executive of the Consumer Finance Association, says Yes. There has already been a significant increase in community illegal lending. The Illegal Money Lending Team for England saw a 62 per cent rise in 2013-14 for successful prosecutions. An estimated 310,000 households are borrowing from illegal [...]
As Wonga profits slide, will regulatory pressure squeeze payday lenders out of the market? John Lamidey, senior partner at Arminius Associates and former chief executive of the Consumer Finance Association, says Yes. The Competition and Markets Authority says that 83 per cent of payday lending customers have taken out a loan online, and 29 per cent have done so on the high street (12 per cent use both). The [...]
