Skip to content

IPPR proposes payday-loan levy

Thinktank report suggests not-for-profit lenders could be sited in Post Office branches and compete with firms such as Wonga

23 April 2014
Money
Loan Money

A one-off levy of £450m on Britain's £180bn consumer credit industry could create enough affordable lenders to take on Britain's legal loan sharks, according to a report from the centre-left thinktank IPPR.

The proposals, which are being considered by Labour, say that as well as a legal cap on the total cost of credit, Britain needs a new generation of not-for-profit affordable lenders with enough capital liquidity and geographic coverage to compete with firms such as Wonga, QuickQuid and Payday Express.

The payday lending industry provides more than 8m loans a year, and has expanded from loans worth an estimated £100m in 2004 to more than £2.2bn in 2012-13.

Two-thirds of those who take out a payday loan have a household income of less than £25,000.

http://www.theguardian.com/money/2014/apr/20/ippr-payday-loan-levy-affordable-lending-wonga

Advisor Magnifyglass

Get in touch with your local MoneySave adviser.

Financialadvisor Family

Take our FREE no obligation Financial Health Check

Start your Health Check today
Sign up to our newsletter to receive regular updates.