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Payday interest to be capped

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  • Payday interest to be capped

    It looks like the Government are to give the Financial Conduct Authority the powers to cap interest rates on payday loans:



    Payday loan firms face cap after government U-turn.


    Financial Conduct Authority to be given new powers to curb exorbitant interest rates charged on payday loans......

    http://www.guardian.co.uk/money/2012...ayday-loan-cap

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  • #2
    Re: Payday interest to be capped

    I see each day on the tv ads for these loans most state in the ad the interest rate so anyone applying knows what they must pay curbing the rate would be good but the upfront charges may be added the only problem i would like to be sorted is debt collection of all ypes of money owed a complete revamp of the system of debt collectors bailiffs and others in this industry,as we all read on here these companies trade on a policy of fear threats and in some cases unlawful actions it all needs to clear how they operate and what they can do a limit must be put on bailiff charges when a hundred pound fine is elevated to 500 with bailiff fees its ridiculous all bailif visits should by law be recorded by the bailiff and copies easily available to the debtor the actions of these thugs must be controlled, A complete package need to be put in place with laws and of reforms of the loan and debt industry put in place and enforced

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    • #3
      Re: Payday interest to be capped

      i wonder what this will mean to the poor loves already struggling to pay back 4000% apr??

      My sister (why i do not know) took out a loan with the Provident..500 loan, shes paying back nearly 1000!!

      Comment


      • #4
        Re: Payday interest to be capped

        The other issue that needs sorting is their appalling lack of diligence during the application process

        This is why many (myself included) have had fraudulent applications made in their name

        (mine even resulted in a default being applied against me!)

        Comment


        • #5
          Re: Payday interest to be capped

          Hi

          You can see the 'fudge' coming a mile off, in the meantime as puffrose points out what about the ones already in the cycle?

          In the meantime more outlets will probably open and the adverts will likely intense after the Xmas period as they try to 'help' people manage and get through that tricky time.

          Will come to head though, eventually, always does.

          Comment


          • #6
            Re: Payday interest to be capped

            Yeah, "help" - they are such a charitable bunch aren't they?

            As well as action being taken against the one that put a default on me for a fraudulent loan made in my name, I'm also jumping through hoops trying to get 2 others to remove credit searches (all made on the same day!)

            1 has so far failed to reply, whilst the other wants gold only knows what from me in the way of witness statements and documents when all I'm asking them to do is remove a credit search, not write a balance off or anything as the other 2 didn't actually issue a loan (obviously spotted a problem that the fraud default one didn't !)

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            • #7
              Re: Payday interest to be capped

              I am in the payday cycle and desperate to leave. I have two payday loans. Mr Lender and I have only been paying interest. 75.00 per month. I have defaulted on MINI CREDIT and they have issued me with two defaults in the space of two days of 55 pounds each. The loan was for 100 pounds. They only issued me with 80 pounds for some unknown reason. They are bombarding me with emails and texts. I am going to send them a letter later on today.

              Once I am out this mess I will never go near a payday loan company again. I want to start saving monthly for an emergency fund.

              Comment


              • #8
                Re: Payday interest to be capped

                Originally posted by singlemom View Post
                I am in the payday cycle and desperate to leave. I have two payday loans. Mr Lender and I have only been paying interest. 75.00 per month. I have defaulted on MINI CREDIT and they have issued me with two defaults in the space of two days of 55 pounds each. The loan was for 100 pounds. They only issued me with 80 pounds for some unknown reason. They are bombarding me with emails and texts. I am going to send them a letter later on today.

                Once I am out this mess I will never go near a payday loan company again. I want to start saving monthly for an emergency fund.


                I would imagine your story is all to common, and particularly at this time of year really upsets me

                How these people can ever be allowed to operate the rates and process they do is beyond me, it goes without saying they just prey on desperate people.

                Comment


                • #9
                  Re: Payday interest to be capped

                  In the U.S several of these payday Companies have been banned. I just wish they could do exactly the same here.

                  Comment


                  • #10
                    the beginning of 2015, there was no cap on the fees and interest associated with the high-cost loans known as Payday Loans. It was at that point that the FCA (Financial Conduct Authority) capped the interest and fees at 0.8% and capped the total payback amount for any loan at double the amount of the original loan. It goes without saying that this unceremonious capping by FCA points was welcomed by all, but the payday loan companies.

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                    • #11
                      Hi,
                      The value tops apply to advances with an APR of 100% or more where the reimbursement term is a year or less (known as mind-boggling expense transient credit). This spreads payday credits and transient advances.

                      There is a top on everyday intrigue, set at 0.8% (292% per annum) - that is 80p per 100 acquired every day.

                      There's additionally a top that takes care of the all-out expense of getting. The aggregate sum of intrigue and charges can't surpass the first sum acquired, so on the off chance that you obtain 100, you will never need to pay back more than 200.

                      Comment

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