Collapse of UK payday loan provider Wonga appears warning for Aussie fintech vigilance

Collapse of UK payday loan provider Wonga appears warning for Aussie fintech vigilance

The collapse of Wonga, certainly one of Britain’s most high-profile fintech loan providers, provides salient classes for Australia, which considers great britain a template for economic technology policy and where tighter guidelines to guard susceptible clients from payday loan providers may actually have stalled.

Wonga, built around a slick application permitting clients to obtain costly loans via their cell phone, ended up being “notorious for the exorbitant interest levels and had been a toxic icon of Britain’s home financial obligation crisis”, stated The Guardian the other day.

The payday lender “failed since it ended up being too greedy as well as times crossed the ethical line”, it stated, quoting prominent UK financial columnist Martin Lewis, whom described Wonga’s loans as “the break cocaine of financial obligation – unneeded, unwanted, unhelpful, destructive and addictive”. Weiterlesen