LONDON (Reuters) – The collapse of Britain’s biggest payday loan provider Wonga will probably turn the heat up on its competitors amid a rise in grievances by clients and telephone calls by some politicians for tighter legislation. Britain’s poster kid of short-term, high-interest loans collapsed into administration on Thursday, just months after increasing 10 million pounds ($13 million) to aid it deal with a rise in payment claims.
Wonga stated the rise in claims ended up being driven by alleged claims management businesses, companies which help consumers winnings payment from companies. Wonga had recently been struggling following a introduction by regulators in 2015 of the limit regarding the interest it among others in the market could charge on loans. Read More