No cap on payday loan interest rates hints new government watchdog

[AAD News Feed]

No cap on payday loan interest rates hints new government watchdog

This is a duplicate of the Blog Entry made on 13th April 2013 10:09.

The new government watchdog has hinted that it will not put a cap on the interest rates of payday loans because consumers could be 'worse off'. In...

Click to Read More...

[julian]

Re: No cap on payday loan interest rates hints new government watchdog

Having the adverts on prime time TV ensures that everybody is bombarded with their nonsense. "I needed the money to repair my car, and I have a year to pay " at 2750% interest, she never will. They should show the downside, without actors.

They are the continuation of the Tally Man, like Provident, who lent £10 and collected £50 over the next few months. They would go around the streets offering the loans to each household, but they gave cheques that could only be spent in specific shops, often very expensive ones. You always needed to get another loan, as you spent any cash on repayments.

However, in the absence of money and access to money they are the refuge that the Welfare State cannot provide. Sometimes you may need the money for a few days to send the children to school or to get to work, when starting a job or waiting for customers to pay. Very often it becomes a millstone rather than a lifeline.