MSE News: 'About bloody time' - payday lending crackdown 3 October 2013 at 9:30AM in Loans 44 replies 5K views

Former_MSE_Helen

"The FCA has today revealed strong plans for new regulations to combat growing concerns about the payday loan market..."

Read the full story:

'About bloody time' - payday lending crackdown




Click reply below to discuss. If you haven’t already, join the forum to reply. If you aren’t sure how it all works, read our New to Forum? Intro Guide.

ILW

Should be good news for the "legbreaker" loan sharks.

BRITGUY

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

Yup, as ILW suggests, buy shares in baseball bats and tyre irons.

dealer_wins

Lets not forget that for every case of irresponsible lending, there is an irresponsible borrower involved!!

opinions4u

a 48 hour cooling off period between approval and release of funds would have been a useful brake.

rizla_king

Good start, but doesn't go any way near far enough.

ILW

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

Interest rates need to be capped for starters. The power is there.

ILW

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

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.