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

Former_MSE_Helen

"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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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.