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Lenders will continue to offer payday loans, because the number of people living precarious lives is still rising

The demand for Wonga-like payday lenders is only going to rise and rise. Blame the digital age and its emphasis on speed and flexibility in all things.

Wonga, which sank on Thursday under a mountain of compensation claims, is likely to rise from the ashes in a new guise and compete again with the many other financial firms offering instant loans at huge interest rates. The target market – that of people on low to average incomes who live from one micro-job to the next – is only going to get bigger. Wonga failed because it was too greedy and at times crossed the ethical line. Under a new management, a firm that plays it straight could still prosper.

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from The Guardian https://ift.tt/2MENc3n