The historic use of the term moneylender refers to a person who as charges a fee for the use of money (i.e. a usuror).
In the UK, the moneylending sector is currently referred to as Home Collected Credit (HCC), reflecting the fact that loans and subsequent repayments are made and collected in person by moneylenders or their agents at their customers doorsteps. The largest lender in this sector is Provident Financial, which has 1.5m customers out of a total of 2.5 million people who borrow from HCC providers, giving the company about 60% market share. In 2005, home credit lenders lent £1.3-2.3bn and collected £1.8bn in repayments.
In 2006, the Competition Commission published a report into their public inquiry into the home collected credit market, which accused Provident Financial of making profits in excess of what could be justified by their costs. Provident disputes this allegation. They estimated that in the industry as a whole, profits of £75 million over the cost of capital were made each year from 2000-05. They also stated that home credit lenders were not competitive on price, partly because demand was not sensitive to changes in price.
MONEYLENDERS have been told that they will have to start warning customers from September that their loans are very expensive.
Jul 09, 2009; moneylenders to warn on high costs moneylenderS have been told that they will have to start warning customers from...