What is the truth about the Chancellor's plan to launch a no interest scheme based on the Australian model to combat payday loans? It certainly is not what people think it is, it's almost certainly a gimmick.
As a business that operates in the HCSTC "High-Cost Short Term Credit" market. Quick Loans were alarmed to hear that there was this new lending model out there which would put them out of business. On closer inspection, they believe that the whole idea is not thought through and does not target payday lenders. The ones who should be worried by this are Credit Unions.
QuickLoans.co.uk analysed the data from the Australian Model quoted by the Chancellor as being successful. The Chancellor did describe the metrics for the basis of this success. A brief analysis of some keypoints of the scheme is detailed here.