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The Lending Well withdraws from payday market
The Lending Well has announced it has widthdrawn from the payday loan market. They attribute this decision to the difficulty in finding "high quality" borrowers within this market. The total interest on a payday loan as a percentage of the capital lent may not be huge over the month which the money is lent, the interest rate - when compounded - is astronomical. The OFT recently told payday lenders to improve following "widespread irresponsible lending" and therefore a responsible lender may find it difficult to operate within this market.
Here is the full statement which was sent by email on 29th March 2013:
Firstly, please let me say thank you for joining and supporting The Lending Well.
We know you have felt the frustrations of the speed of lending, which is a direct result of maintaining our strict lending policy and our commitment to lending responsibly.
It has continued to be a challenge to find high quality borrowers in the PayDay market especially as we have kept to our commitment not to relax our underwriting criteria. It is important to us that The Lending Well is an ethical and responsible lender and also that our lenders avoid any loan that may go into default.
Therefore, we have made the decision to cease lending in the PayDay market and concentrate on the development of a new product. We will make an announcement in time.
If you have any questions please do not hesitate to contact us at [email protected].
Once again, the The Lending Well team would like to thank you for the tremendous support and belief in us and we will get back to you with details of the new opportunity.
With best wishes
Founder and CEO
The Lending Well
We look forward to the relaunch of The Lending Well with their "new product" and we will keep you posted.