Sixteen years\u00a0ago the Debt on the Doorstep campaign\u00a0began to tackle extortionate costs imposed by non-bank lenders in the UK market.<\/p>\n
As the campaigners\u00a0for this noted when winning a cap on interest rates a decade<\/a> later:<\/p>\n The lobby was followed up by a report from Richard Murphy, arguing\u00a0the case for an interest rate ceiling<\/a>, based on a forensic analysis of the business model of Provident Financial, and concluding there was\u00a0prima facie<\/i>\u00a0evidence of market failure in the sector.<\/p><\/blockquote>\n That report now seems to have disappeared from the web. I have republished it here<\/a>.<\/p>\n Now Wonga is at death's door. The Guardian reports<\/a>:<\/p>\n Britain\u2019s biggest payday lender, Wonga, is teetering on the brink of collapse following a surge of customer compensation claims in recent weeks that could cause it to call in administrators.<\/p>\n The short term loan provider has reportedly lined up Grant Thornton the accountancy firm, to handle a potential administration of the company should its board believe it is unable to avoid falling into insolvency.<\/p><\/blockquote>\n The departure of exploitative\u00a0lenders is good news.<\/p>\n The need for a social fund, run by local authorities, or centrally funded but with local administration, that those with a need for emergency credit can turn to, remains as pressing as ever. That creation of such a fund would be the right response to this news.<\/p>\n","protected":false},"excerpt":{"rendered":" Sixteen years\u00a0ago the Debt on the Doorstep campaign\u00a0began to tackle extortionate costs imposed by non-bank lenders in the UK market. As the campaigners\u00a0for this noted
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