The Anonymous Widower

Payday Loans Get A Cap and a Kicking

This morning the Financial Conduct Authority has imposed a cap on payday lenders. The BBC report starts like this.

Payday loan rates will be capped at 0.8% of the amount borrowed a day,said the Financial Conduct Authority (FCA).

In total, no one will have to pay back more than twice what they borrowed, and there will be a £15 cap on default charges.

I do hope that this type of loan quickly becomes a blip on the history of finance.

If you might at some time need to borrow money, make sure that you can get the best credit rating you can, by behaving responsibly. This should help to give you access to finance at a reasonable rate when you need it.

But we can all help to get rid of these high cost loans.

I believe that if we put our savings in a peer-to-peer lender that lends to others, this will put more money in the hands of responsible lenders, who can lend to those that need to borrow, who fit their lending requirements.

So you’ll be helping yourself and also helping others.

But do choose a peer-to-peer lender that is or will be regulated under the FCA.

Zopa, who are regulated, say this about their relationship with the FCA

November 11, 2014 - Posted by AnonW | Finance & Investment | Payday Loans, Peer-to-Peer Lending