Personal credit, its sources and its costs are issues that are slowly rising in Britain’s political consciousness. Over the past five years, payday loan firms have boomed as consumers were (and continue to be) locked out of conventional loans from risk-averse banks. Many of our high streets are now riddled with colourful shop fronts which offer “cash within 15 minutes” or “quick unsecured loans”. It doesn’t sound too painful, until you look beyond the surface. Interest rates typically range from 200% to 1,500% APR. However, if you think that this is painful consumers, then look at the latest development in short-term credit: internet loans.

The leading competitor in this area is the infamous Wonga.com, which charges an eye watering 4,214% APR on its loans. If someone were to borrow £100 from Wonga for seven years, they would have to repay £13,000,000,000,000, equivalent to the entire national debt of the…