Jump to content
House Price Crash Forum
Sign in to follow this  
interestrateripoff

Payday Loans: New Law To Cap Costs

Recommended Posts

http://www.bbc.co.uk/news/uk-politics-25083701

The government is to introduce a new law to cap the cost of payday loans.

The level of the cap, which has not yet been announced, will be decided by the new industry regulator, the Financial Conduct Authority (FCA).

The Treasury says there is "growing evidence" in support of the move, including the effects of a cap already in place in Australia.

But the industry said the move could restrict credit, and encourage more illegal lending.

The cap will be included in the Banking Reform Bill, which is already going through Parliament.

Speaking to the BBC, the Chancellor, George Osborne, said there would be controls on charges, including arrangement and penalty fees, as well as on interest rates.

"It will not just be an interest rate cap," he told BBC Radio 4's Today programme.

"You've got to cap the overall cost of credit."

No surprise the industry says it could restrict credit, they are hardly going to agree with this.

Share this post


Link to post
Share on other sites

My guess would be the cap will be ludicrously high, to have no effect whatsover.

Yes, a cap could be anything.......and to be honest do desperate people who need cash now this minute look at what it will cost them?.....tomorrow is another day to get through. ;)

Share this post


Link to post
Share on other sites

the news reported that there are really people who take out a payday loan to pay for Christmas :o

what are they thinking?

bake a few extra nibbles and ditch the expensive presents.

as mentioned above if payday loans are not there illegal cash lenders will arise who are even less regulated. :(

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   223 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.