L00b   441 #1 Posted November 25, 2013 (edited) At long last, something which I have long claimed should be done, on the example of other European countries: a statutory cap is to be introduced in the UK, on the eye wateringly-high interest rates practiced by short-term 'payday-style' lenders.  I'll link the Grauniad's article on this development by way of background (got to hand it to them: trust them, to manage to put such an anti-Gvt/pro-Labour slant on the story )  Irrespective of who's done it, it's a good thing, in my book. What say you? Edited November 25, 2013 by L00b Share this post Link to post Share on other sites Share this content via...
tzijlstra   11 #2 Posted November 25, 2013 About bloody time, it is pure exploitation of thick people. The law should be there to protect thick people from being protected and it was failing properly in this case. Share this post Link to post Share on other sites Share this content via...
Mister M Â Â 1,609 #3 Posted November 25, 2013 I think it's disgraceful!!! Interfering with the hidden hand of the market like that. How's anyone supposed to make a living nowadays when you've got a nanny state telling businesses how they can and can't run their affairs! If people are so naive as to fall for loans at high interest rates, but the Government are going to introduce a statutory gap, how on earth are the plebs going to learn? Share this post Link to post Share on other sites Share this content via...
geared   303 #4 Posted November 25, 2013 With all the Labour flag-waving I didn't catch the actual cap thats being proposed.  I (think) I heard on the morning news 4000% was mentioned, is that right or was I still half-asleep? Share this post Link to post Share on other sites Share this content via...
dawny1970   10 #5 Posted November 25, 2013 4% per month I believe   Posted from Sheffieldforum.co.uk App for Android Share this post Link to post Share on other sites Share this content via...
Mister M   1,609 #6 Posted November 25, 2013 With all the Labour flag-waving I didn't catch the actual cap thats being proposed. I (think) I heard on the morning news 4000% was mentioned, is that right or was I still half-asleep?  Go back to sleep Share this post Link to post Share on other sites Share this content via...
L00b   441 #7 Posted November 25, 2013 how on earth are the plebs going to learn?They're going to learn to do without instead.  Surely a good thing, on many levels?  For a start, it should go towards keeping inflation in check. Next, it should also go towards the current trend of people generally weaning themselves off credit. Further to that, it should eventually lead to reduced margins on many consumer goods and services.  All logical consequences of taking money out of the circuit/system. Share this post Link to post Share on other sites Share this content via...
GLASGOWOODS Â Â 10 #8 Posted November 25, 2013 About bloody time, it is pure exploitation of thick people. The law should be there to protect thick people from being protected and it was failing properly in this case. Â Â I think your being a tad unfair tzijlstra.. It's not only desperate persons who use these companies. It's also small businesses who have been turned away by the mainstream lenders (unless they sign up to what may be the next big selling scandal)Even when their company has an healthy order book. Â The thought of losing your business built up over the years could drive even the most competent of people to lend this way... Share this post Link to post Share on other sites Share this content via...
tzijlstra   11 #9 Posted November 25, 2013 I think your being a tad unfair tzijlstra.. It's not only desperate persons who use these companies. It's also small businesses who have been turned away by the mainstream lenders (unless they sign up to what may be the next big selling scandal)Even when their company has an healthy order book.  The thought of losing your business built up over the years could drive even the most competent of people to lend this way...  I was a bit harsh, granted. But even if I was desperate to save my company I would not use this route. it will only lead to further debt.  Having said that: the only reason these companies can exploit the market is because the proper banks aren't doing their jobs. Share this post Link to post Share on other sites Share this content via...
geared   303 #10 Posted November 25, 2013 4% per month I believe  Go back to sleep  Whoops, clearly miles off.  So they days of thousands of percent interest are numbered then? Share this post Link to post Share on other sites Share this content via...
Uptowngirl   10 #11 Posted November 25, 2013 Whoops, clearly miles off. So they days of thousands of percent interest are numbered then?  And at 4% a month the days of a lot of folk actually getting a loan will be too. Share this post Link to post Share on other sites Share this content via...
L00b   441 #12 Posted November 25, 2013 And at 4% a month the days of a lot of folk actually getting a loan will be too.Will it?  4% a month works out at 54% APR approx.  A damn side cheaper than current 4-digit APRs, wouldn't you say? Share this post Link to post Share on other sites Share this content via...