Most UK payday lenders are being scrutinized over the interest rates they are charging which is usually in the thousands of percent on average.

  • 247 Moneybox 5784%
  • Txt Loan 4474%
  • Wonga 4214%
  • Lending Stream 3043%
  • Wage Day Advance 2814%
  • Safe Loans 2692%
  • Toothfairy Finance 2689%
  • Quick Quid 2356%
  • Cash Genie 2339%
  • Speed e Loans 2243%
  • Uncle Buck 2100%

UK Payday Loan Laws

Scottish MP Margo MacDonald has sent a letter to the British Office of Fair Trading asking that the law be clarified regarding payday loan companies in the UK. MacDonald is asking specifically if these type of loans are covered by a 14 day cooling off period like other loans in the UK, and if a witness is required.

“My concern, on behalf of my constituents, particularly those of modest means, is that the companies may be operating on the very borderline of legality.” Says MacDonald in the letter.

Wonga is also being singled out over a questionable ad campaign by MP for East London, Stella Creasy.Payday Loan Laws UK Apparently Wonga had been advertising on the London underground rail system and their ads did not provide any information on interest rates being charged. This is a legal requirement of all UK consumer credit firms. After bringing this matter up in the House of Commons, Creasy has decided to take matters into her own hands and has scheduled a
meeting with OFT chairman Philip Collins this week to discuss the UK payday loans problem.

 

Creasy told the House of Commons last week that the Government had ‘dragged its heels’ on payday loan firms, which have begun referring to themselves as ‘micro-loan’ companies. The Department for Business, Innovation and Skills has commissioned a report on the market, but that is expected to take a year to be completed. (excerpt from an article in www.thisismoney.co.uk)

 

 

Tagged with: • • • • • • • • •

Filed under: Payday Loans UK

Like this post? Subscribe to my RSS feed and get loads more!