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Pay Day Lenders versus the Credit Unions

Geoff Riley

27th July 2013

A major news story this week has been the attack made on the pay-day lending industry by the Archbishop of Canterbury Justin Welby. He claimed that he wanted to compete the likes of Wonga out of existence by encouraging the Church of England to offer more support for credit unions. Whether this is likely is open to question.

The commercial pay day loans businesses have grown rapidly in recent years but concerns over some of their practices has led to an investigation into the industry by the Office of Fair Trading. Payday lenders have been accused of a variety of poor practices, including aggressive debt collection and failing to work out whether repayments are affordable.

Pay day loans industry by numbers (Telegraph)

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Geoff Riley

Geoff Riley FRSA has been teaching Economics for over thirty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD conferences in the UK and overseas.

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