Payday loan boss: Rivals are unethical
A payday loan site boss has attacked the "unethical practices" of rivals. Jason Gardiner, founder of FridayFriday, has called for regulators to crack down on lenders which encourage borrowers to endlessly roll-over debts.
Mr Gardiner said: "I believe that many companies in the industry try to maximise their returns by adding additional charges and interest to loans that have defaulted. The net result of this to the consumer is more debt and certainly a lot more stress.
"This also creates a spiral effect where ultimately lenders end up owing in multiples of what they originally borrowed, making what was originally a short-term financial solution into a long-term debt nightmare."
This week the most high-profile payday loan firm Wonga announced soaring profits and a big increase in the number of loans being taken out. The figures have fuelled worries that firms are preying on vulnerable people that can't really afford credit.
However, Independent reader David Humphrey thinks that tighter regulation is not the answer. "Instead, any lender that wants to use the courts to enforce repayment of any form of loan must be forced to show that it did not behave recklessly when the loan was granted," he said.
"The move would mean no complicated rules to provide a feast of opportunity for nit-picking lawyers. Just a simple one-line piece of legislation, a few court decisions and no further problem," suggested Mr Humphrey.
Could it really be that simple?
- 4 Exclusive: Newcastle's star talent-spotter on brink as Joe Kinnear sparks walkout
- 5 Vast methane 'plumes' seen in Arctic ocean as sea ice retreats
iJobs Money & Business
£500 - £600 per day: Orgtel: FX Options Front Office Java / C# Developer - Ba...
£600 - £700 per day: Orgtel: Project Manager - Front Office - Regulatory IT C...
£600 - £750 per day: Orgtel: FATCA Project Manager - Banking - London - £600-...
£550 - £600 per day: Orgtel: Fidessa Analyst / PM - Banking - London - Up to £...
Day In a Page
A three-bedroom semi-detached house in Lower Slaughter constructed out of natural stone in keeping with the Cotswolds, £650,000
A smartly presented two-bedroom cottage, extensively refurbished with sun-filled garden and terrace, £350,000
A Victorian barn conversion at Heath End Farm with four bedrooms. £1.25 million.
A spacious two-bedroom flat within an impressive Victorian terrace building, close to Fulham Road and New Kings Road, £375,000.
A two-bedroom flat at Grafton Court, a former manor house in the village of Temple Grafton, with private terrace, £450,000
A four-bedroom listed mews in Apley Castle with impressive drawing room, £425,000
A two-bedroom flat close to the Regent's Canal with a private patio and a concierge service. £500,000
A two-bedroom flat at the Candlemakers Apartments set over two floors with a balcony. £625,000.
This three-bedroom Grade II-listed thatch in the pretty village of Wigginton. £450,000.
A new two-bedroom flat with a bright open-plan reception and skyline views. £450,000.
A modern home of almost 1,000sq ft is close to Stoke Newington's high street. £499,950
A five-bedroom bungalow in Hoveton with riverside garden and mooring dock, £550,000
A refurbished one-bedroom flat with south-facing reception and high ceilings. £579,950
A four-bedroom Grade II-listed house in Nazeing with large gardens. £550,000
A modern four-bedroom house in a converted stable within walking distance to Peckham Rye. £695,000
Three-bedroom house in a quiet residential area within close distance to Battersea Park. £450,000
A three-bedroom cottage within commuting distance of London, Norwich and Cambridge. £250,000
A two-bedroom cottage with a sun room and gardens in South Chard. £350,000.
A three-bedroom semi-detached house with original features including fireplaces and wooden flooring. £399,950