MSE News: 'About bloody time' - payday lending crackdown

Former_MSE_Helen
Former_MSE_Helen Former MSE Posts: 2,382 Forumite
"The FCA has today revealed strong plans for new regulations to combat growing concerns about the payday loan market..."
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'About bloody time' - payday lending crackdown

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Comments

  • ILW
    ILW Posts: 18,333 Forumite
    Should be good news for the "legbreaker" loan sharks.
  • BRITGUY
    BRITGUY Forumite Posts: 31 Forumite
    Is it just me or are the changes not really that great, particularly as they are staying clear of a maximum % interest cap for now? I'm concerned about the impact of an immediate clampdown of rollovers for borrowers too - getting banks (or some sort of governmental guarantee, like the mortgages) to help provide alternative sources of credit to clear off loans in a controlled and sustainable manner would have been the real result.
  • Nada666
    Nada666 Forumite Posts: 5,004 Forumite
    Yup, as ILW suggests, buy shares in baseball bats and tyre irons.
  • dealer_wins
    dealer_wins Posts: 7,334 Forumite
    Lets not forget that for every case of irresponsible lending, there is an irresponsible borrower involved!!
  • opinions4u
    opinions4u Posts: 19,411 Forumite
    a 48 hour cooling off period between approval and release of funds would have been a useful brake.
  • rizla_king
    rizla_king Forumite Posts: 2,895 Forumite
    Good start, but doesn't go any way near far enough.
    Still rolling rolling rolling...... :) <
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  • ILW
    ILW Posts: 18,333 Forumite
    rizla_king wrote: »
    Good start, but doesn't go any way near far enough.
    Agreed, Hatchet Fred from Harlesden may have to wait a bit longer to buy his new Merc.
  • rizla_king
    rizla_king Forumite Posts: 2,895 Forumite
    Interest rates need to be capped for starters. The power is there.
    Still rolling rolling rolling...... :) <
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  • ILW
    ILW Posts: 18,333 Forumite
    rizla_king wrote: »
    Interest rates need to be capped for starters. The power is there.
    How would that work with a short term loan?
  • jaydeeuk1
    jaydeeuk1 Posts: 7,714
    Debt-free and Proud!
    Forumite
    Pay day loans shouldn't have an APR imo. Should be expressed as a percentage cost of what you borrowed.

    EG, if you borrow £100 and you pay back £125 inc fees etc, then it should just say loan cost 25% if paid back on time.

    But then again we live in a society that is devoid of self responsibility. So !!!! it, we need more loan sharks.
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