The present news that payday lender QuickQuid went into administration follows just last year’s collapse of previous industry frontrunner, Wonga. For me personally, this raises wider implications for monetary solutions providers to test that their clients obviously comprehend the dangers and tend to be able to just take them on.
Freedom to choose vs consumer security
In 2015, the Financial Conduct Authority imposed affordability checks and capped payday loan costs in an attempt to protect susceptible clients. Ever since then, the amount of claims against payday loan providers has increased, including claims that affordability checks weren’t performed properly.
That is an area that interests me personally them to understand how they should approach high-stake claims, as well as how to innovate their processes to protect their customers and their businesses from future harm as I work with financial services firms involved in consumer claims, helping.
In a democratic culture, folks have the freedom to decide on the way they reside their life, including the way they approach cashflow problems. Sadly, with at the very least 22percent of men and women in the united kingdom living in relative income that is low there clearly was an industry for solutions offering temporary money to struggling households.