The departure of controversial payday lenders like Wonga, QuickQuid and The Money Shop marked a turning point. These companies were once at the centre of complaints and investigations, with thousands of customers raising concerns about unfair lending and high costs. But today, things look very different.
Stronger Rules from the FCA
The Financial Conduct Authority (FCA) introduced tough new rules in 2015. These included strict price caps to prevent very high interest charges and limits on default fees. Importantly, lenders must now be authorised by the FCA to operate legally, which means they must follow fair lending practices and treat customers properly.
These changes forced many lenders out of the market—especially those who relied on aggressive or harmful practices. As a result, only the most responsible companies were able to stay in business or start up. The FCA’s continued supervision also ensures that any new lenders meet the same high standards, which gives people more trust in the companies they borrow from.
Fewer Complaints Show Better Practice
One clear sign of improvement is the sharp drop in complaints. According to the Financial Ombudsman Service, the number of complaints about payday loans fell by 58% in 2022/23 compared to the year before. This shows that borrowers are having a much better experience and that lenders are treating customers more fairly. It’s a sign that the industry is now focused on responsible lending, rather than quick profits.
Big Investments Signal Strong Future
Another sign of confidence is the interest from investors. In 2024, responsible lender QuidMarket was acquired for more than $50 million. This shows that there is strong belief in the long-term future of the market. Buyers are willing to invest in businesses that follow the rules, treat customers well and have a clear plan for growth.
This type of investment would have been unlikely when the market was dominated by risky lenders. Today, the fact that a compliant, customer-focused lender can attract such a high value shows that the industry is now seen as stable, trustworthy and valuable.
A Safer Place for Borrowers
“Thanks to these changes, UK consumers now face a much safer lending environment,” explains Bruno Velazquez, founder of short-term finance startup, SuperDinero. “Borrowers are more protected by law, lenders are more carefully watched, and poor behaviour is no longer tolerated.”
“At the same time, customers still have access to short-term credit when they need it, without facing the extreme risks that used to be common.”
“In short, the UK loans and finance market has matured. It is no longer a “wild west” of fast money and high costs. Instead, it is a well-regulated space where responsible businesses can succeed and where consumers can borrow with greater confidence and peace of mind.”
