Pay Day Loans

Posted on: 03/10/2013

The FCA is properly getting involved in policing the Pay Day Loan industry.

It would be wrong to assume that all participants are sharks BUT there is no doubt that a number have shown no regard for the welfare of their customers.

Setting a maximum of two for roll-overs of loans is a good start but will only work if 1) customers are honest and 2) loan providers are not referring their borrowers to an "associate" when their own line of credit has been exhausted under the rules.

Since we know many desperate customers will be tempted to lie and that at least some lenders are disreputable, trusting that the new rules will prevent excesses is perhaps naive.

The FCA will have to keep the measures taken under constant review to ensure ALL consumers are protected, even those who are very foolish or desperate enough to be dishonest. There is no point in anyone- and especially the regulatory authorities-hiding their heads in the sand when it comes to the vagaries of human nature.

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