High-profile critics of loan company Wonga, which charges extremely high interest rates that can trap poor households in debt, have come under heavy pressure. Yet action is important if those most vulnerable are to be safeguarded.
The UK has become a magnet for payday loan companies that target the poor. Other countries limit the interest these companies can charge, but here in the UK the sky’s the limit, so more and more firms are moving in to make a killing. Along with the increasing demand for food banks, the proliferation of these companies on our high streets sum up what a harsh and unforgiving place Britain has become for the poor.