One of the chiefs at Britain's payday lending giant, Wonga, has said that the sector is better than banks and credit cards despite politicians criticising companies for 'preying on the vulnerable.'
Speaking at a House of Commons Business, Innovation and Skills Committee hearing, Wonga's Head of Regulatory and Public Affairs Henry Raine defended the group and said most people paid back loans on time.
He said that the average loan was £176 for 17 days, adding that the vast majority of customers pay back early or on time and that it compares favourably to credit cards and banks.
Payday lenders are in a dispute with consumer groups over the level of complaints relating to short-term lending. They have been accused of lending irresponsibly to those who can't afford to pay back the sometimes highly inflated interest rates on the short term loans. Wonga has defended their actions by saying out of their one million UK customers, 99% are content with the company's lending terms.
Written and presented by Alfred Joyner