How the payday loan industry cleaned up its act

The recent headline in the payday loan industry has all been about a lender – CFO Lending – being forced by the industry watchdog, the FCA, to write off £31.9 million in outstanding loans and pay back £2.9 million in fees to customers. CFO Lending (which used six different brands), was found to have taken money out of customer accounts without authorisation, sent threatening correspondence and charged exorbitant and unwarranted fees. But what is less far less publicised is the extent to which Britain’s payday loan industry has cleaned up its act over the last two years. The efforts lenders have made to comply with rules laid down by the FCA and improve self-regulation have resulted in an industry that many commentators insist provides a valuable service to hundreds of thousands of customers and people on low incomes. How payday lending bounced back In early 2015, new rules governing payday lending were introduced by the FCA. These governed the interest rates that lenders were


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