Restrictions to be imposed on payday loan interest rates

We recently blogged about the rise in payday loans, and calls by the Office of Fair Trading for loan firms to treat customers more fairly.

Well now the Government has announced that it will change the law to allow for restrictions to be imposed on the interest rates that payday loan providers can charge.

Currently, consumers who take out a payday loan can end up paying a huge interest rate – up to 4000% – which can easily lead to getting further into debt, with serious consequences.

Following rising concerns about the nature and consequences of these loans, ministers are set to amend the Financial Services Bill, so that the planned Financial Conduct Authority will have the power to limit charges.

Read the full story at: BBC.co.uk

Payday_loan

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