Revealed: The £1 billion high cost lending industry
|Bundles of cash are being lent to consumers with poor credit ratings. (Image via Sutterstock.com)|
The disclosures come as the Office of Fair Trading (OFT) is due to decide whether it will refer the payday loans industry to the Competition Commission for a market investigation into alleged restrictive business practices.
Stella Creasy MP
Labour MP Stella Creasy, who has campaigned to limit the interest that firms can charge, said: ’Recommendation after recommendation and review after review has uncovered a systematic failing in this industry, which continues to claim it can sort itself out.
The growth in the industry has rewarded investors and directors well. Many of the chief executives of the companies analysed by the Bureau are earning six-figure salaries. The highest paid director at Wonga.com earned £1.6m in 2010, according to company accounts.