Payday Lending Market Investigation

Published: Wed, 11/12/14

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Reminder: asked for my musings on the payday loan industry
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I've always counseled that to understand what's coming in
the U.S. payday loan space, look to the U.K. for insight. A few
highlights from The CMA (Competition & Markets Authority) in the
United Kingdom does just that.

"* Shortly after Sunny launched [Think Finance formed
Sunny] it experienced a large spike in applications of
low quality. Think Finance believes that this was driven by
customers, who were already active in the market becoming aware of a
new lender and applying after they had been rejected by other
lenders or as a potential new source of funding. Sunny was
issuing around [redacted] loans per month and at present
the balance of new to repeat borrowers is skewed towards new
borrowers as they sought to build up their customer base. Sunny was
generating revenue of around £[redacted]."

[Much like the "new guy in town." A new payday lender
opens up for biz and all the regulars apply. They get approved and
send their buddies over to the new lender who doesn't have a
clue.]

"* Think Finance said that speed of payment by a lender was more
important to many customers than the offer of no fees, flexibility
of duration and repayment of a loan and lower interest rates."

[SO TRUE! Those of us who have worked behind the counter and talked
with borrowers on the phone know this all too well.]

"*Think Finance believed that lead generators and brokers should
clearly state their...

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Read the rest of this : http://paydayloanindustryblog.com/?p=2980