LONDON (Reuters) – The collapse of Britain’s biggest payday loan provider Wonga probably will turn the heat up on its rivals amid a rise in grievances by clients and telephone calls by some politicians for tighter legislation. Britain’s poster youngster of short-term, high-interest loans collapsed into administration on Thursday, just months after raising 10 million pounds ($13 million) to assist it deal with a rise in payment claims.
Wonga stated the rise in claims ended up being driven by alleged claims administration companies, businesses that help consumers winnings settlement from companies. Wonga had been already struggling after the introduction by regulators in 2015 of the limit in the interest it yet others on the market could charge on loans. Read More Wonga collapse will leave Britain’s other lenders that are payday firing line