(ThyBlackMan.com) In recent years payday lenders have had a great time of it charging whatever they want and pretty much on what terms they want. Now that the FCA have introduced tough new regulations what does this mean for the industry?
Many payday lenders operating in the UK have long been offering a substandard service. They were able to charge exorbitant rates of interest and let people rollover their loans digging themselves deeper and deeper into debt. Thanks to the introduction of a tough set of new rules from the Financial Conduct Authority in January of this year this is all about to change. These regulations are already having an impact on these substandard lenders with many of them choosing not only to not renew their credit license but some are even handing them back and shutting up shop. As more lenders close their doors experts are predicting that there could be as few as 3 or 4 eventually remaining in operation.
The FCA regulations tackled many of the issues associated with payday loans. Daily interest rates have been capped at 0.8%, fixed default fees have been capped at £15 and repaid fees and interest must not exceed the amount borrowed. As well as these rules borrowers are unable to rollover their loans more than twice. Gone 
are the days when a lender could get away with charging 6000% APR and the customer would end up paying back much more than what they originally borrowed.
So where does this leave the more reputable lenders?
Many lenders are already shutting up shop with numbers falling from 1,400 in 2013 to just 500 now with more still to close by the end of June 2015. On the flipside other lenders have welcomed the changes and are stepping up their game considerably. One of the most disruptive new lenders is www.wizzcash.com who only entered the payday loans market in 2012. One of their greatest attributes is their intuitive and functional website that carries clear messaging and terms and conditions. The drop-down that greets the user on the homepage simply allows the applicant to choose how much they want to borrow and how much it will cost them to repay and within what time period. Their website is also mobile friendly which is great news considering how many people now transact via their mobiles or other smart devices.
Many people need to be able to transact online
It has to be a major consideration now not just for payday lenders but for all businesses. If businesses don’t have a mobile friendly or indeed a mobile site now Google is going to remove businesses from the search results thanks to their very recent update. The consequence of this will be saying goodbye to an awful lot of business. With this to consider and the fact that people need to be able to get what they want in a few clicks if the site isn’t straightforward people just won’t transact.
Staff Writer; George Brown
