Capping rates of interest on pay day loans: a national government u-turn?

Capping rates of interest on pay day loans: a national government u-turn?

In an obvious U-turn, the Chancellor, George Osborne, has chose to cap the attention prices as well as other fees on payday advances as well as other short-term credit. The sky-high interest rates which some of the poorest people in the UK are being forced to pay on these loans have caused outrage in many quarters: see A payday enquiry and Kostas Economides and the Archbishop of Canterbury as we have seen in previous news items. Certainly, the loan that is payday happens to be called because of the OFT into the Competition Commission (CC). The CC is needed to report by 26 2015, although it will aim to complete the investigation in a shorter period june.

It had been becoming more and more clear, nonetheless, that the federal government will never hold back until the CC reports. Lire la suite