Payday lending companies look to be turning on each other under pressure from campaigners and regulators — with a major player quitting the industry body and slamming the remaining membership in a statement issued exclusively to Political Scrapbook. The logo of multinational pawnbroking franchise Cash Converters mysteriously disappeared from the Consumer Finance Association’s website in the last few days. When this website asked them […]

An economic adviser to financial regulators on payday loans had his favourable report on the potential “social good” of high cost credit funded by the payday loan industry, Political Scrapbook has confirmed. Having been dragged into an interest rate cap, the government left it to the Financial Conduct Authority to deal with the detail. Academic John Gathergood was commissioned to […]

The Respublica think tank — founded by ‘Red Tory’ Phillip Blond — is to launch a report hailing the potential “social good” of the parasitic payday loan industry. That this bonkers notion is seeing the light of day may have something to do with the report being “kindly supported by” the Consumer Finance Association — the, […]

Payday parasites Wonga have been subject to yet another ruling by the Advertising Standards Authority — for an ad claiming that consumers can “save money” with a 5,853% APR loan. The TV spot, which was subject to a complaint from the Citizens Advice Bureau, was slammed not only for conveniently failing to mention the punitive level of […]

With Wonga pushing to expand internationally, it was only a matter of time before the parasitical lender drew the ire of foreign financial regulators. Speaking of operations launched in five other countries across three continents, former chief exec Nial Wass told the BBC: “We are still refining our algorithms [the arithmetical rules underlying the lending decisions] […]

Payday loan firm Wonga has had an advert banned in a damning ruling by the Advertising Standards Authority — and not because those puppets are really annoying. The TV spot featured an exchange between two of the firm’s elderly mascots discussing interest rates: “Right, we’re going to explain the costs of a Wonga short-term loan” “Some […]

With the Financial Conduct Authority (FCA) poised to take over the regulation of consumer credit — including payday loans — the new watchdog has retained M&C Saatchi to support its comms work: “Their extensive experience in developing behaviour-change communications will be critical in helping us reach and influence consumers when they are facing particular financial risks.” […]

“It can only be a matter of time before the Information Commissioner comes knocking.”, claimed Scrapbook back in June, when we reported on the case of a payday loan company that was sending out fake text messages purporting to be from recipients’ friends. The ICO didn’t so much knock as blow the house in — with a £175,000 […]

In addition to driving up queues at food banks, payday lenders such as Wonga also stand to profit from George Osborne’s seven day block on the newly unemployed claiming Jobseeker’s Allowance. A spokesperson from debt charity StepChange told Scrapbook: “If people don’t have a redundancy settlement then that seven day period will increase the risk of people taking […]