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Rapid Growth in 2012 For Payday Loans

Written By On 13/02/2013

Payday loans in the United Kingdom have seen a swift growth in the competition from lenders within the last four years. The media circus that has followed online and within the newspapers, has been made much more aware because of new amended criteria from the Office of Fair Trading and government changes in relation to debt recovery practices.

Unfortunately the media appear to enjoy showing the industry in a bad light. The industry has conveyed the need to embrace changes in it’s criteria by 2014, and reputable lenders and providers are satisfied to sanction the requirements with the hope that it will rid us of shady companies.

The payday loan industry boomed after the increase of the payday loan market in 2008/2009. This rise was measured at an increase of 500% in the beginning with a more maintained level in the past couple of years. The amount of new providers have also stabilised at approximately 275 lenders.

A more modest 5% growth is anticipated by certain analysts following a sturdy 2012, where more than one million loans were predicted to have been granted just over Christmas. These recent figures will probably be amalgamated into the 2014 predictions and 2013 will present even more payday loan products within the market.

The Open Door Loan company has highlighted Manchester as the unofficial main place for the most online payday loan searches in Britain. London, Liverpool and Newcastle were not far behind with Hamilton, Falkirk and Dundee heading Scotland.

Figures showed that 54% of payday loans were taken out by applicants under the age of 37, followed by 25% between the ages of 37 to 47, completed by 21% over the age of 50. Men and women had an equal share, but men seem to make more defaults at a rate of 55%.

The payday loan industry is expecting at least a 10% rise in the next couple of years after more competition and regulations.