PayDay Loan rates capped in the UK

[hollydolly]

Finally the interest on the cost of Payday loans have been capped in the UK .

Up until now enormous rates of up to 1000% APR have been the norm...now with this new law..payday rates will be capped at 0.8% per day of the amount borrowed.

About time too.

I'm fortunate that I've never been in a position were I've had to borrow money from a payday lender and clearly they have their uses for those who need money in the short term but there's an old adage if you can't afford to pay back your loan then do not borrow in the first place , it'll just get you into worse problems


Have a read here..

http://www.bbc.co.uk/news/business-30641877


Anyone else ever found themselves or known anyone to be hooked in by Loan sharks..?

 

[Warrigal]

Good move

 

[jujube]

We had the "car title loan" companies hit Orlando many years ago and most people were losing their cars. The interest rate was astronomical and people just couldn't pay the loans back. At some point, the state regulated them to the point that most of the companies packed up their tents and slunk out of town.

The payday loan places are still going strong, though. There's a corner on a major street here that has three, count 'em, three of them and they are always busy. Of course, they also offer check-cashing for those who don't have a bank account (for a chunk of the check, of course) and most offer free money orders, so they get them coming and going.

 

[oakapple]

It's about time this happened isn't it? I have never had to make use of these companies, but a lot of people have, and it can make them sick with worry when they can't pay back easily in time.