Wonga 2.0? Meet the new breed of payday lenders

A new wave of credit firms is offering ‘medium-term’ loans at hefty APRs of up to 1,421%

The worst of the payday lenders, famed for offering short-term loans at sky-high interest rates, may have faded away, but vulnerable consumers are still being targeted with offers of loans with four-figure APRs.

The medium-term loan market, where money is lent for three to 12 months, is thriving with some lenders charging well over 1,000%, frequently to those on the lowest incomes, or unable to borrow from the traditional banks. These loans appear to work on the same premise as payday loans – a fast online or mobile application process, and money in your account quickly.

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From our friends over at the : Economy | The Guardian


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