The Game Up For Newcastle United Sponsor Wonga?
News today that Newcastle United sponsor Wonga could be heading for big problems ahead.
Many Newcastle fans believed that it was a shocking decision to get into bed with the payday lender with many refusing to buy the branded merchandise bearing the sponsor’s name.
The United owner may have been happy to jump into bed with Wonga but a higher authority is now committing to make life a lot more difficult for payday lenders such as Wonga.
The Chancellor, George Osborne, has today unveiled plans that will see the new regulator, the Financial Conduct Authority, look at the whole package of charges for payday loans.
Osborne said this would include looking at a cap on arrangement fees, penalties and the interest rates which would then have an overall effect of a cap on the total cost of credit charged by payday lenders.
The Chancellor said that the moves are intended to stop people being exploited and allow them to get a fair deal. There are already limits on the cost of such loans in many other countries and it is way beyond time that the UK caught up and helped protect its citizens.
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