Digital Finance Analytics (DFA) Blog
"Intelligent Insight"
We look at the latest from the UK short term lending market as another big lender withdraws. But why inaction here? https://www.fca.org.uk/data/consumer-credit-high-cost-short-term-credit-lending-data-jan-2019 https://www.bbc.com/news/business-49878277 https://www.bbc.com/news/business-50174367 https://www.theguardian.com/money/2019/oct/25/quickquid-owner-collapses-into-administration
There have been some interesting developments in the short-term lending market in the UK recently. The Financial Conduct Authority in the UK recently published data on the so called high-cost short-term credit (HCSTC) market. HCSTC loans are unsecured loans with an annual percentage interest rate (APR) of 100% or more and where the credit is … Continue reading “The Fall Of Pay Day?”
National not-for-profit, Good Shepherd Microfinance, has made a bold move into online lending with the support of NAB to launch Speckle – a fast online cash-loan which offers a better alternative for people seeking small cash loans under $2,000. They also cite our updated research on the Pay Day Loan market in Australia. We think … Continue reading “A Viable Alternative To Pay Day Loans”
We monitor Pay Day lending – or Small Amount Credit Contracts (SACC) – as they should be called, via our surveys. We have just run our 2017 updates, and we find that SACC lending is still growing, and well above inflation and wage growth. A symptom of financial stress in the community . Watch the … Continue reading “Pay Day Lending Still Running Hot”
The Consumer Action Centre and Financial Rights Legal Centre have launched a social media campaign to warn prospective Pay Day borrowers of the risks involved. Entitled Watch Your Nuts, it involves a memorable squirrel! Fitting, as lenders themselves have been pushing into digital, and are using social media and apps to extend their reach to … Continue reading “Watch Your Nuts – Anti Pay Day Loan Campaign Launched”
ABC Checkout looks at Pay Day Loans, using data from our consumer research and the Stressed Financial Landscape Report. DFA has completed detailed analysis of households and their use of small amount credit contracts, a.k.a. payday lending.
ASIC annouced today enforcable undertaking with Payday lenders Web Moneyline and Good to Go Loans, to cease using a loan product, called OACC2, following concerns raised by ASIC that the product may not have complied with the small amount credit contract provisions under the National Consumer Credit Protection Act 2009 (National Credit Act). Both lenders … Continue reading “ASIC Stops More Pay Day Lenders”
DFA has been using its household survey to analyse the $1.5bn+ Pay Day lending market. ASIC of course has been highlighting poor compliance within the industry, and also recently showed the range of purposes pay day borrowers might borrow for. Cash flow emergencies was the highest. Pay day loans, or small loans, as they are … Continue reading “Pay Day Hot Spots”
As highlighted earlier in the week banks are tightening their support, but some may be going to far. We look at the latest. Go to the Walk The World Universe at https://walktheworld.com.au/
Several UK mortgage lenders have announced loan repayment holidays to support homeowners affected by coronavirus. Via Homes and Property Royal Bank of Scotland said it will defer mortgage payments for up to three months to affected borrowers. The state-backed bank is 62 per cent owned by the taxpayer and has announced the emergency measures to … Continue reading “UK Banks Offer Mortgage Repayment Holidays”