Miliband's payday loans attack

Labour leader Ed Miliband has attacked payday loan lenders, claiming that "the Wonga economy is one of the worst symbols of this cost of living crisis." A Wonga executive has told MPs his firm's practice compares 'favourably' with credit cards.

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  1. Chris Choi

Payday lenders admit shortfalls in affordability checks

Payday firms say they make careful affordability checks. These are supposed to ensure the companies don't lend more than a borrowers can repay.

But today they admitted to a worrying blind spot. It's possible for someone to take out a series of short term loans all around the same time, without the payday firms realising the individual is becoming over-stretched.

The spokesman for Mr lender, Adam Freeman, admitted it could be 60 days before they get the information. Wonga's Henry Raine agreed that better data sharing is needed to plug the information gap.

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