Romford borrowed more in pay day loans than Leeds in 2018

Town took out ВЈ15m, compared with ВЈ14.7m, despite vastly smaller populace, data programs

Romford market. In terms of quantity lent by capita, Croydon, south London, had been the largest at ВЈ29.15. Photograph: David Levene/The Guardian

Romford market. With regards to of quantity lent by capita, Croydon, south London, ended up being the largest at ВЈ29.15. Photograph: David Levene/The Guardian

Final modified on Fri 19 Apr 2019 18.20 BST

The individuals of Romford in eastern London borrowed additional money via payday advances in 2018 compared to the population that is entire of, relating to formal information.

A research on the basis of the numbers called Birmingham as “the pay day loan capital regarding the UK”, featuring its residents borrowing an overall total of £37m in 2018 as their finances that are personal under some pressure.

Nevertheless the information indicated that in regards to populace size, Romford and Croydon, south London, had been both contenders when it comes to name.

Romford’s residents took down 55,299 payday advances in 2018, totalling just over £15m in value. In Leeds there have been simply over 63,000 loans well worth at total of £14.7m.

Leeds has a populace of 750,000, based on final census in 2011, while several different numbers receive for Romford, although the one most frequently utilized is 95,894.

The information ended up being acquired through the Financial Conduct Authority.

In the past few years thousands of people have actually turned to the high-cost pay day loans to greatly help spend their lease or home loan, cope with an urgent crisis and on occasion even manage their regular food store.

The best-known player, Wonga, collapsed in 2018 after several years of debate and a clampdown from the sector, but there are numerous of other businesses nevertheless plying for trade. One of the greatest is QuickQuid, which states it charges a rate this is certainly representative ofper cent APR.

The FCA information had been acquired via a freedom of data demand by Wagestream, a software utilized by some companies which allows workers to get a share of the wages because they are acquired in return for a cost.

It reveals that residents of Birmingham borrowed ВЈ37.1m across 146,000 pay day loans in 2018, well in front of second-placed Manchester, with ВЈ28.6m across 124,000 loans, and Sheffield, with ВЈ23.8m across 100,000 loans. Glasgow and Newcastle had been in 4th and 5th spot.

However the information matters each London borough as a split entity therefore if they certainly were all added together, the main city would top the dining table by a margin that is large.

The analysis indicated that as soon as the numbers were weighted for populace thickness, Croydon borrowed the many money “per capita” just last year: £29.15 for each resident. About 42,600 loans with a value that is total of had been applied for.

Wagestream stated the numbers unveiled “Britain’s ongoing dependency on payday loans”, that could carry a pursuit prices as much as 1,500per cent APR compared to 22.8per cent for a credit card that is typical.

The biggest loans on average were secured in Ilford, eastern London, in which the average had been ВЈ301.73.

The expense of payday advances is capped under guidelines that restrict how much individuals can be charged when it comes to interest and charges. The limit means individuals will never repay more than twice whatever they initially borrowed.

Top 20 locations ranked by total quantity loaned in 2018

Birmingham ВЈ37,128,942

Manchester ВЈ28,601,495

Sheffield ВЈ23,768,022

Glasgow ВЈ23,641,636

Newcastle upon Tyne ВЈ23,453,937

Nottingham ВЈ22,378,878

Liverpool ВЈ21,322,865

Peterborough ВЈ18,384,239

Cardiff ВЈ17,591,799

Leicester ВЈ17,244,521

Chester ВЈ14,814,467

Leeds ВЈ14,679,325

Top five areas by amount loaned per capita in 2018

Croydon 42,639 loans, ВЈ29.15

Romford 55,299 loans, ВЈ29.04

Dartford 41,931 loans, ВЈ26.26

Southall 35,730 loans, ВЈ26.03

Northampton 66,784 loans, ВЈ25.74