Payday lenders told to behave themselves
The clampdown on payday lenders starts tomorrow, which means they won’t be able roll over loans more than twice – plus there’ll be tighter restrictions to your bank account, so Wonga won’t be able to drain all your wonga.
July 1st will also be the day they’ll have to start being more transparent in their advertising. They’ll have to slap warnings all over the big rubbery face of Earl and his old lady friends, telling people about the risks of late repayment, with a link to the Money Advisory Service in case people need help.
The exact wording? This:
'Warning: Late repayment can cause you serious money problems. For help, go to moneyadviceservice.org.uk.'
Things are looking a bit shaky for the payday loans industry as a whole. A massive investigation is currently being conducted by the Competition and Markets Authority, following the billions of complaints and debt from its customers and critics. The FCA is also looking into capping the overall cost of a payday loan.
So could these new regulations mean that payday loans will soon be a thing of the past? Or are we all so skint and desperate that we’ll do anything to borrow a quick buck?