Wonga collapse renders Britain’s other lenders that are payday firing line
LONDON (Reuters) – The collapse of Britain’s biggest payday lender Wonga probably will turn up the temperature on its competitors amid a rise in grievances by clients and telephone phone telephone telephone calls by some politicians for tighter legislation. Britain’s poster kid of short-term, high-interest loans collapsed into administration on Thursday, just months after increasing 10 million pounds ($13 million) to greatly help it handle a rise in settlement claims.
Wonga stated the rise in claims ended up being driven by alleged claims administration businesses, companies that assist consumers winnings payment from companies. Wonga had recently been struggling after the introduction by regulators of a limit from the interest it among others in the market could charge on loans.
Allegiant Finance Services, a claims management business dedicated to payday lending, has seen a rise in company into the past two months as a result of news reports about Wonga’s woes that payday loan companies Litchfield are financial its handling manager, Jemma Marshall, told Reuters.
Wonga claims constitute around 20 % of Allegiant’s company today, she stated, incorporating she expects the industry’s attention to turn to its rivals after Wonga’s demise. […]