Why are countless payday loan providers going into management?

Why are countless payday loan providers going into management?

“There will simply be four main payday loan providers running within the sector.”

It was the claim created by the Financial Conduct Authority (FCA) back 2014, when I sat in a seminar that is crowded enclosed by other payday loan providers and agents. Using the FCA taking over through the workplace of Fair Trading that 12 months, numerous industry players had been anticipating a shake-up as directors of pay day loan businesses and I also huddled into this space hoping to get some understanding of the pending legislation.

Needless to say, we laughed from the concept of a business with only four players. At this time, payday financing was indeed a booming company with an industry valuation of ВЈ2 billion, over 3 million loans funded per year, around 200 loan providers, and much more than 200 agents, effortlessly. Continue reading “Why are countless payday loan providers going into management?”