Nesta Challenges launches £2m in prize money to increase affordability in the lending industry

Nesta Challenges launches £2m in prize money to increase affordability in the lending industry

Nesta Challenges have recently launched the Affordable Credit Challenge, in the hopes of creating incentive for community lenders and fintech companies to partner up and develop solutions to help improve affordability within the lending industry. The funding organisation has claimed that high-cost credit loans do have “a role to play in the market” however, “too many people have been turning to these lenders […] when it has not been appropriate for their own personal situation.” Whilst community lending and other not-for-profit lenders can provide a better means of borrowing for people in particular financial situations, studies have shown that many […]

Read more »

Hundreds of jobs at risk after payday lender The Money Shop faces collapse

Over 400 members of staff at the Money Shop are being faced with the prospect of losing their jobs. The Nottingham based company has started a mass redundancy of 427 staff around the UK. Instant Cash Loans limited (ICL), who are the major pawn broking and cash loans company have released plans to sell of all of the UK stores. They have sent a letter to all its employees. In the letter ICL stated: “The proposal to make collective redundancies is considered appropriate due to the poor financial performance of Instant Cash Loans Ltd (ICL).” They further went on to […]

Read more »

Payday lender PiggyBank under investigation by the FCA

The UK’s financial watchdog has recently started investigations into the payday lender PiggyBank. The Financial Conduct Authority (FCA) are examining the lender’s assessment process of its borrower’s creditworthiness. This creditworthiness determines if a borrower is “worthy” of being lent a loan by the providers, and often has much lower requirements than the standard high-street providers. Payday, and other forms of high-cost short-term (HCST) lenders set their credit-worthy bar so low as their main clientele are those who have been rejected from the main high-street providers due to their poor credit rating. As a result of accepting mainly those with a […]

Read more »

10 Ways to Save When You Travel

It’s no secret that travelling abroad can be very expensive, with the UK’s travel and tourism industry predicted to be worth more than £257 billion by 2025. However, it’s also an immensely popular industry, and an expense that travel bugs are willing to take in order to create incredible new memories in far-off lands. But how do people afford to travel so much? And what are some ways to cut back on travel expenses whilst going on holiday? This piece will be exploring 10 of the top ways to save on travel expenses, these being as follows: Free days Social […]

Read more »

Payday loan complaints soar to 5 year high

The Financial Ombudsman Service has recently revealed in new statistics that complaints against payday lending providers across the country have risen to a staggering five-year high. How many complaints have been filed? The industry watchdog has said that a whopping 40,000 new complaints against payday lenders were brought against them last year. This is a dramatic rise, representing an increase of 130% (17,000 complaints were made in the year previously). The industry body, the Consumer Finance Association (CFA) has said that the majority of these filed complaints had dated back to a number of years. What were the complaints about? […]

Read more »
Mis-sold customers of payday loans won’t receive full compensation

Mis-sold customers of payday loans won’t receive full compensation

After the collapse of payday loan lenders Juo Loan and Wage Day Advance, as we have previously written earlier this year, it has now been revealed that customers who were mis-sold loans will now only be partly compensated. The company that owns the two businesses, CURO Transatlantic Limited (CTL) went into administration on 25th February and appointed KPMG as its administrator. How much compensation is owed? In terms of the amount that is owed to customers who were sold a payday loan which did not meet lending standards set out by the FCA, it is estimated to be around £223 […]

Read more »
Mortgage rates fall for those with bad credit

Mortgage rates fall for those with bad credit

Are you struggling with a bad credit score, and either have a mortgage or looking at getting one? We have some good news for you! It appears in new research that the average rate for credit-impaired borrowers with a mortgage has fallen. Mortgages for those with bad credit Those who damaged their credit score – for example, getting into a cycle of debt with not being able to keep up with repayments for things such as payday loans or guarantor loans – have been well-known to typically receive much higher interest rates – and as a result, higher overall repayments, […]

Read more »
Payday loan advert banned for encouraging Brexit fears

Payday loan advert banned for encouraging Brexit fears

This month, the payday loan short-term credit provider Peachy.co.uk most recent advertisement campaign has been banned by the Advertising Standards Authority (ASA). The reason behind this was that its advert was seemingly capitalising on consumers fears about the outcome of the Brexit referendum. What was in the advert? The email advertisement by Peachy.co.uk (which is part of Cash on Go Ltd) promoted short-term loans to people with the specific aim of those hoping to purchase stockpiling goods should the outcome of Brexit be a no-deal scenario. It featured in bold text 'IN CASE OF EMERGENCY PRESS HERE' whereby if you [...] Read more »
Wage Day Advance and Juo Loans collapse into administration

Wage Day Advance and Juo Loans collapse into administration

It has been recently revealed that at the end of February the company that owns payday lenders Wage Day Advance and Juo Loans, CURO Transatlantic Limited, has now gone into administration. This follows on from the huge collapse of UK payday lender Wonga, in August of last year. What has led to their collapse? The collapse of these payday lenders is similar to the reasons why Wonga ended up going bust in August 2018. Wage Day Advance had been processing thousands of compensation complaints, after being accused of having irresponsibly lent a staggering £18 million. This has been argued to have [...] Read more »
Wonga still damaging borrowers finances

Wonga still damaging borrowers finances

Despite Wonga going into administration in August last year, it is still gravely affecting the finances of 10,500 borrowers as a result of its collapse, according to  MPs in a recent Treasury Committee meeting. Thousands of customers who were the victim of mis-sold, eye-wateringly expensive payday loans could end up losing thousands of pounds in compensation as a consequence. But why is Wonga struggling to readdress the issues that have resulted due to its closure? We take a further look, and how this will affect its payday loan borrowers.   A surge in compensation claims One of the main factors […]

Read more »