Payday Lending: Interest Rates and Marketing Tactics

payday lending: The claims, said Wonga, related to loans taken out before 2014, when outrage over its payday lending offers prompted new rules to cap the cost of borrowing, according to The Guardian. The UK's payday lending industry has been criticised by campaigners who claim its high interest rates and marketing tactics unfairly target vulnerable borrowers. The short-term loan firm said the development was a way of coping with a surge in claims from former customers seeking compensation. A Wonga spokesman, confirming the 10m injection, said its shareholders remained fully supportive of management's plans for the business . Wonga continues to make progress against the transformation plan set out for the business. The lender was forced to scrap its business model after running into regulatory problems and because of the cap on loan rates introduced by the Financial Conduct Authority in 2015. In recent months, however, the short-term credit industry has seen a marked increase in claims related to legacy loans, driven principally by claims management company activity. (news.financializer.com). As reported in the news.