A crackdown on payday lenders could hit the price of one of the UK's leading credit reference firms, Sky News understands.
A looming crackdown on the payday lending sector could scupper hopes of a £400m-plus payday for the owners of Callcredit, a leading credit checking agency. Sky News understands that a number of bidders for Yorkshire-based Callcredit have expressed concern that the profit the company generates from so-called alternative finance providers could be substantially eroded by political hostility toward the sector. The Archbishop of Canterbury, Justin Welby, and politicians including George Osborne, the Chancellor, and Ed Miliband, the Labour leader, have called for tough restrictions on payday lenders' business practices in recent months.
An influential committee of MPs waded into the debate last month, calling for restrictions on the way companies such as QuickQuid and Wonga advertise their products. The exact proportion of Callcredit's earnings derived from the sector is not disclosed by the company although a person close to the auction suggested that it could be in the region of 10%. The private equity groups Charterhouse, Permira and Chicago-based GTCR are among those preparing to submit final offers for Callcredit ahead of a deadline on February 6...Read more here
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Payday Loan Crusade Alarms Callcredit Bidders
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Payday Loan Crusade Alarms Callcredit Bidders
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#1MrsD commented22 January 2014, 08:29Editing a commentpersonally I can see that there is too many spotlights on the payday lenders end of debt collection, while the "mainstream" creditors and DCAs quietly get away with horrendous behavior which is very rarely spotlighted in the same way. ALL of the debt collecting business and CRA behavior needs a great big light shining on it, not just the newsworthy targets
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