The karma fest for payday loan companies continues — with news that Wonga has been forced to go begging to regulators to continue operating.
The assertive posture from the Financial Conduct Authority is leading some legal loan sharks to consider closing their doors.
The FT reports (£):
“Lenders hoping to remain in business had to apply to the watchdog before the end of February, but the authorisation process could take months or even up to a year for some of the larger companies.
This development comes after Labour’s manifesto promised to fund credit unions using a levy on payday parasites:
“we will deal with the scourge of household debt by introducing a new levy on payday lenders, using the funds raised to boost low-cost alternatives like credit unions
It couldn’t happen to a nicer industry.