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Payday loans in the United Kingdom
Payday loans in the United Kingdom are typically small value (up to £1500) and for short periods. Payday loans are often used as a term by members of the public (and commentators) generically to refer to all forms of High-cost Short-term credit (HCSTC) including instalment loans, e.g.
3-9 month products, rather than just loans provided until the next pay day.
Market overview
[edit]The provision of Payday (HTSTC) loans is overseen by the UK's Financial Conduct Authority.
FCA data sizes the UK market, in the twelve months to 2018, at 5.4 million loans per year.
How does monthly pay work ukThis is a significant reduction from in 2013, before FCA regulation of the sector, when the market was c. 10 million loans a year. In terms of value the FCA sizes the market with consumers borrowing c. 1.3bn a year, making the average loan size c.
£250.[1]
The market is concentrated. In 2018 the FCA identified 88 firms providing loans however 85% of loans were provided by just ten players. Since that time a number of key players have left the market. This i
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