Bishop of Durham says interest rate of 4,000%, as charged by Wonga, has been considered 'usurious' since the time of Moses. The bishop of Durham has described the interest rates charged by payday lenders as sinful and usurious, but says they are the only resort for many families desperate for money. Citing the 4,214% APR charged by the UK's highest profile short-term lender Wonga, the Rt Rev Justin Welby said his worry was people would get used to this "deeply shocking" level of interest and begin to think it was normal. "An interest rate of over 4,000% has been considered usurious since the time of Moses. It's no different now," he said. The bishop said he was not describing the lenders as immoral or saying they were acting improperly, "but they have become the only resort for people in many parts of the country where traditional banks and credit unions are just not available".

He said the surge in use of payday lenders – Wonga alone has extended 4m loans worth £1bn in little more than four years – reflected the increasing numbers of people being forced to collect food from church foodbanks each month. The bishop, who recently visited a food bank in Chester-le-Street, said: "I find it bizarre and horrifying in this day and age to see this happening. It shocked me that so many people were coming there for help after running out of money before the end of their financial month."...Read more here