UK: Church of England takes payday lenders into own hands

As the Competition Commission takes on an investigation into the UK’s payday lenders, following the finding by the Office of Fair Trading of “deep-rooted problems” with the sector, the archbishop of Canterbury has informed payday lending giant Wonga that the Church of England will being a decade-long process to “compete” Wonga out of business. Most Rev Justin Welby, who one served on the Banking Standards Commission in Parliament, told media he spoke with Wonga chief executive Errol Damelin about the plans to combat an industry highly criticized for high interest rates and fees that burden consumers. The OFT referred the case to the Commission after finding evidence that certain business practices of the market “prevent, restrict or distort competition.” Wonga raised its standard interest rate to 5.853% last month. Welby has already initiated a credit union for clergy and church staff in York, say reports.

Full Content: The Guardian

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