U.K. Regulators Propose Payday Borrowing Caps

The public backlash against Wonga, the largest provider of payday loans in the U.K., has encouraged the country’s conservative government to propose a low that would cap borrowing on the financial tools.

The public outcry began when Wonga released a short film portraying the merits of its financial tools. Critics have argued that the film, as well as Wonga’s promotional tactics, are predatory.

Unlike competitors, Wonga offers one-click cash by using 8,000 pieces of data on consumers, from their Internet activity to Facebook profiles, to make lending decisions.

Errol Damelin, who founded the company and now serves as chairman lauded Wonga for “challenging the tired and incompetent banking industry by offering new products and services that are relevant to a digital age.”

For more on payday loan use in the U.S., view our interactive data point here.

“What’s Hot” is aggregated content. PYMNTS.com claims no responsibility for the accuracy of the content published by the original source.

The post U.K. Regulators Propose Payday Borrowing Caps appeared first on PYMNTS.com.