Pounds Till Payday and Swift Sterling Not Issuing Loans. Payday Mate Also Closed. Is This the End for Northway?
Update: MMP Financial Ltd Are New Owners.
It looks like another big payday lender is closing down. For some time now “Swift Sterling Not Issuing Loans” has been the firm’s top autocomplete query in Google search. This query was also seen with Pounds Till Payday although they aren’t particularly well known in comparison to their fellow brand. We’d have to assume that existing customers were unable to apply for more funding when they were logged in since the application form itself hadn’t been taken down. On checking now, this has been removed from www.swiftsterling.co.uk, but it hasn’t from www.poundstillpayday.co.uk. Meanwhile in Australia, the notice for PaydayMate.com.au reads that they are no longer loaning.
Update: Fixed 3 Month Product Released.
2015 has been a Year to Forget for Wonga.com and November has certainly been an eventful month for the market leader. It was announced in this month that 90 day loans were being piloted for existing customers and a news article was also circulating surrounding the £3 million fraud trial taking place at the Old Bailey. We’ll begin with the product expansion that we expected to come sooner or later. Alike most other lenders who have already adapted, they’ll now have the opportunity to increase profits by keeping users on longer agreements. One key difference here should be seen in flexibility that should hand borrowers with the repayment choice of 1 up to 90 days.
Payday Loan Lenders haven’t had a great year in 2015. The Financial Conduct Authority (FCA) who regulates the industry set price capping at the beginning of the year. This capping forced Closures and many leading firms switched their loans from monthly to instalment (hence chasing the profits). A new document published on October 28th 2015 alerts us to further change. However, this time around it is price comparison sites that show payday loan products that must roll out the changes. The key change will see the requirement of loan products being sorted by their lowest total cost. Other proposals include improved disclosure on pricing and enhanced search ability based on varying amounts and terms required.
With just a few months remaining of 2015, it doesn’t appear likely that Kredito24 or Uploan will be rolling out their new loan products. As has been the case for some time now, their websites remain live with the same email capture forms attached. If you would like to stay in the loop then you can subscribe at www.kredito24.co.uk or www.uploan.co.uk. So, why all the hype with these new loan companies? Kreditech aims to become “The Amazon of Consumer Finance” and they may well go on to become the first company to offer global payday loans. Then we have Cash on Go who are the team behind Peachy who could be considered as the new Wonga.
The Money Shop loans can now be received directly online. The retail giant previously redirected online leads to Payday Express and PaydayUK who are each part of the same group (DFC Global). The significance of this development surrounds the retail dominance that TMS held since they opened up their first store in 1996. A specialised instalment product is now provided between 15 days and 6 months (the shorter term depends on your next pay date). New customers benefit from a 20% discount that is not available through their sister-companies. Once funded the loan can be managed at www.themoneyshop.com. This is the first time that they have offered logins (they have owned a few sites).
Campaigners have recently been seeking a ban on payday loan TV ads. This rather bizarre news story was floating around last week. Campaigning groups including the Children’s Society set a proposal to block advertisements during any shows watched by a sizeable audience of children such as The X Factor. I thought most kids were hooked on tablets around the clock? This is not the first time that The Broadcast Committee of Advertising Practice (Bcap) have been steered on this topic. Last year the government made a request to Bcap to consider looking at a total watershed ban on payday loan commercials. The pressure certainly looks to be mounting and this issue won’t be going away anytime soon.
For most of Wonga’s history, everything they have touched has seemingly turned to gold. The market leader issued 3.7 million loans in the 2013 year (approx 10,137 each day). They had notched up more than 1 million customers and if you didn’t see their logo printed on football shirts then you’d see their ads online or on the TV. Search engine rankings were high and they crafted a 24/7 automated short term lending product that they’d later take to Canada, Poland, South Africa and Spain. The level of success attained within the space of just a few years has been staggering. Questions like “Will Wonga Go Bust?” were at one time inconceivable.
Fidor Bank launched in the UK earlier this month at www.fidorbank.uk. This online-only banking operation arrives from Germany where they have attracted close to 70,000 clients and 250,000 community members since they launched in 2009. It is their interactive online community that distinguishes them against other web banks such as First Direct and Smile. Interaction in this community earns financial rewards, although there are caps applied on how much you can earn from any given activity each month. It is still early days here and most of the products will be rolled out over time. This suits them as they want to build products with the user in mind, whereby feedback is essential.
MyJar’s Loans have taken on another flexibility upgrade. Noticing this change was quite fortunate, on a random visit to check for updates. To address the major service changes from their beginning in 2009, we initially had TxtLoan that offered simple £100 loans for 15 days. Returning users could however see higher limits that increased in hundred blocks up to £500. The product back then lacked flexibility, but it was one of the quickest on the scene. When you repaid money to this lender they quickly auto-approved more funds. With a simple text message or request once logged in, funds were sent to the customer’s bank account in minutes no matter when the request was made.