MSE News: New payday loan rules come into effect today

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Former_MSE_Paloma
Former_MSE_Paloma Posts: 531 Forumite
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"Vulnerable borrowers will be better protected from today as new rules to crack down on payday lenders come into force ..."
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New payday loan rules come into effect today

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  • Paul_Herring
    Paul_Herring Posts: 7,481 Forumite
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    Vulnerable borrowers will be better protected from today as new rules to crack down on payday lenders come into force

    Because forcing them to use illegal loan sharks because the payday lenders can't/won't lend to them any more is better protecting them.
    Conjugating the verb 'to be":
    -o I am humble -o You are attention seeking -o She is Nadine Dorries
  • roougers
    roougers Posts: 69 Forumite
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    Does anyone know if these rules apply to existing loans taken out before 1st Jan from the 1st Jan if that makes sense??


    If I had discovered MSE this time last year I may not be going down the road to BR

    :beer:
  • Paul_Herring
    Paul_Herring Posts: 7,481 Forumite
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    roougers wrote: »
    Does anyone know if these rules apply to existing loans taken out before 1st Jan from the 1st Jan if that makes sense??

    Reading between the lines, it would appear not, unless changes are made to the loan agreement:

    http://www.fca.org.uk/news/fca-confirms-price-cap-rules-for-payday-lenders
    Application of the cap to loans made before January 2015

    We have adjusted the rules so that if an HCSTC agreement is modified after 2 January 2015, charges imposed before 2 January must be taken together with charges imposed after that date for the calculation of the cap.

    http://www.moneysavingexpert.com/news/loans/2014/11/payday-loan-cost-cap-confirmed-by-fca
    Below are the new rules, which take effect for loans taken out or modified from 2 January 2015.
    Conjugating the verb 'to be":
    -o I am humble -o You are attention seeking -o She is Nadine Dorries
  • Hazzinho
    Hazzinho Posts: 742 Forumite
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    Have to agree with above now PDL's will reject a lot of people as it's not worth the risk any more with the cap. I predict the loansharks are going to have a very good year. PDL will now look a longer term loans as PDL are not worth the effort.
  • chanz4
    chanz4 Posts: 10,895 Forumite
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    Just means the will go to the likes of provident, which isn't there apr very high and know one seems to say anything...
    Don't put your trust into an Experian score - it is not a number any bank will ever use & it is generally a waste of money to purchase it. They are also selling you insurance you dont need.
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