Wednesday, April 16, 2014

Changes to Payday Loan Regulation in the United Kingdom

Do you ever wonder about who is taking the role of watchdog when it comes to payday loans? In the United Kingdom, the payday loans sector now falls under the watch for the Financial Conduct Authority; previously payday loans had been under the Office of Fair Trading.

Many people--such as Labour MP Stella Creasy--have called payday loans an "under regulated" industry. The shift to the FCA could lead to more regulation of the high charges that borrowers have been paying as the amount they owe continues to grow each month when they are charged additional amounts if they haven't yet repaid their loan. These roll-over amounts just keep growing and growing for many borrowers.

Considering that payday loans attract borrowers with the idea that the loans are only intended to last a month and then be repaid, many consumers don't realize how much their fees will continue to grow if the loan is not repaid within the initial month.

For more details about payday lending, check out the website CushTeeCash, where the site owners have been following the developments in regulation of payday loans in the UK. This website also covers issues related to saving money.

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