DEC 05, 2012 6:52 PM
Short Term Loan Costs Can Be Capped
The Financial Conduct Authority now has the power to cap the cost of short term loans. Despite the industry launching an enhanced code of practice agreed to by 90% of the lenders last week, the House of Lords today ammended a bill to include the power to cap rates.
The next Archbishop of Canterbury Bishop Justin Welby was one of the members of the House of Lords that waded into the lenders when he described the debate as a moral case that is ‘bad for the clients and bad for all of us in this country when it is permitted to happen.’
The FSA has been under pressure to crack down on the rogue lenders from several MP’s and its record isn’t great when it comes to revoking licences etc. but hopefully being able to cap the costs imposed by any lender not following the rules will see these companies finally put out of business or at least moved onto another country to ply their trade.
Unfortunately, it seems many of these companies have realised the gravy train is about to come to the end of the line and are going all out to grab as much custom as they can before they are stopped.
A quick search on Google for payday loans returns 7 ‘dodgy’ results that included sites that don’t show their consumer licence or the the APR. Some, including the top result is nothing more than a redirect page that sends you to a different website than the one you clicked on.
If you must take out a short term loan then stick to the companies you have heard of and that are members of the Consumer Finance Association. Their members have all signed up to a customer charter which means you have somewhere to take your complaint should something go amiss.…
Christmas Money Worries Expected To Mean More Loans
Insolvency trade body R3 say their research suggests around 4 million of us (that’s 8% of the population) will turn to payday type loans this Christmas to help them purchase gifts.
“I am worried that so many individuals are intending to take a payday loan to cover the cost of Christmas. I would…
Short Term Payday Loans Can Effect Your Chances Of Getting a Mortgage
In what is being seen as a worrying trend for the 3 million customers of Quickquid, PaydayUK and all the other various short term payday loans companies operating in the UK, it has emerged that some mortgage lenders are turning down applications if the applicant has previously used the services of one…