Alternative finance lender Oakam is trying to help the unbanked November 30, 2018 Payday loan companies get a bad rap. And it’s easy to see why, considering the predatory businesses practices and extortionate interest rates charged by lenders like Wonga, which collapsed into administration this year. High-interest, short-term loans were back in the news this week, with the announcement that the fintech startup Monzo is considering offering such [...]
The City helps fuel economic growth right across the country, so be wary of those who want to clip its wings October 28, 2018 One of the most pernicious elements of Labour's current economic platform is the idea that the City is entirely distinct from (and damaging to) the so-called real economy. Jeremy Corbyn and John McDonnell's stump speeches routinely contain attacks on predatory bankers, fat-cats and financial speculators. The labour leader also seems to have a personal vendetta against [...]
FTSE asset management fund LBOW takes £25m loan from challenger bank Oaknorth October 17, 2018 UK challenger bank Oaknorth has completed a £25m loan to ICG-Longbow (LBOW), the London listed commercial real estate lender. Oaknorth has said today that it agreed a ‘loan-on-loan’ deal with LBOW, in which the challenger firm will lend the asset manager money which can then be further loaned out to property investors. The deal is [...]
Regulator warns payday lenders over risky loans October 15, 2018 The Financial Conduct Authority has written to the bosses of payday lending firms, urging them to consider ‘affordability risk’ before making loans to financially vulnerable borrowers. In a ‘Dear CEO’ letter sent today, the FCA warned that lenders should “take prompt action” to ensure they maintain compliance with regulations that force them to assess customers’ [...]
Payday lender Cash Genie told to repay £20m to customers by Financial Conduct Authority July 27, 2015 A payday lender has been told to give back millions of pounds to customers because its lending practices were deemed unfair by the financial regulator. After it found "serious failings" at the lender, the Financial Conduct Authority (FCA) told Cash Genie to repay £10m to customers – after it's already waived fees and interest totaling £10.3m. [...]
Guarantor loans are “as damaging” as payday loans, Citizens Advice says July 17, 2015 A charity has warned as Britain's regulators heap pressure onto payday lenders, problems linked with this sector are simply shifting to other parts of the market for credit products. Citizens Advice said "guarantor loans", which allow borrowers to use the name of someone else, usually a friend or family member, as security for a loan. [...]
New guidance issued for payday loan adverts to prevent trivialisation of short-term high-cost borrowing June 4, 2015 New guidance has been published on the regulation of adverts for payday loan products, designed to prevent ads from trivialising taking out short-term high-cost loans. The Committee of Advertising Practice's rules, which come into immediate effect, say that ads must be responsible to the audience and society, and should not encourage consumers to make ill-considered or [...]
Wonga revamp adds money-back guarantee, ditches puppets – and aims new products at “hard working people” May 19, 2015 Wonga’s re-brand is here: the payday lender is to roll out new television adverts aimed at its new middle-class target base. It is also offering a money-back guarantee as part of an image revamp aimed at repairing the reputation damage it suffered during a tumultuous 2014. It will keep the Wonga name, despite speculation about [...]
Payday lender Wonga to drop toxic name and advert puppets after losses April 21, 2015 Payday lender Wonga is planning to replace its toxic brand with a new name and a range of products beyond its core payday lending business, its bosses said yesterday. The online loans firm made a £37.3m loss in 2014 on falling lending and a sharp rise in costs. It is under financial strain as [...]
Wonga re-branding: Experts predict payday lender to pick a very boring new name April 21, 2015 Wonga is likely to pick a dull name to deflect attention in future, brand consultants told City A.M. The online payday lender ran a hugely successful branding campaign, rapidly becoming the most high-profile firm in its sector. “Its success was also its downfall,” said Sholto Lindsay-Smith from brand consultancy Industry. “It was the most catchy name [...]