There are four payday loans now operating in the island, according to trading standards bosses.
The Manx Office of Fair Trading is investigating the rise of the payday loan phenomenon and how it is impacting on Manx consumers.
It is currently reviewing the operation of local providers registered with the OFT under the Moneylenders Act 1991 and also loans made to island consumers by UK lenders through online and call centre channels.
This work was motivated by concerns in the UK about payday loans rather than specific complaints by local consumers, said Manx OFT chief officer Mike Ball.
He said online questionnaire elicited 23 responses. They had taken out 26 loans, of which about a quarter were with local lenders.
One website called Manx Quick Cash is offering payday loans of up £1,000, promising customers they will get their cash in just 15 minutes with no paperwork. But it comes at a price - with interest charged at a rate of as much as 1,737 per cent APR.
Manx Quick Cash is not registered with the Manx Office of Fair Trading. It is operated by SDM Corporation Ltd of Fareham, Hampshire, under the trading name Lending Hub Technology, with a Consumer Credit Licence issued by the UK OFT.
Mr Ball said: ‘There are currently 89 registered moneylenders under the 1991 Act but only four of these are currently offering what would be recognised as “payday loans” in the Manx market. As part of the registration process, the OFT identifies those persons responsible for the operation of the money lending business and ensures that they are “fit and proper”.
‘With regard to manxquickcash.com, it does not appear to be operating as a moneylender but rather as a credit broker. It is a price comparison website offering a range of UK-based online loan products.’
Manx Quick Cash’s website features the Energy FM logo. Juan Turner MLC, technical director of Energy FM, described it as a ‘client advertiser’.
The OFT payday loans report is likely to be published later this year, said Mr Ball.