The “perfect storm” is one of Ms Stella Creasy’s phrases that has been bandied out quite a bit of late by the Labour MP for Walthamstow in what has become a personal crusade against what she sees as “toxic” short term loans companies.
There seems to be still considerable debate about whether the recent attempts by the government and the industry associations that represent the short term loans sector will be able to come to an agreement on what is acceptable practice by the industry as a whole.
Here in Britain we are regularly told that we are in “cowboy” territory as far as short term loans providers are concerned and the original cowboy country – the United States of America – is a model of strict regulation and declining payday activity.
A new entrant on the short term loan market stage is a company that claims to be like an eBay of the short term loans world.
While much of the retail sector has experienced a significant downturn and a lot of the manufacturing has been contracted out or outsourced to bases overseas there remain one shining beacon of entrepreneurial activity.
While short term loans lenders have received an extraordinary amount of flak recently, especially in the media, the ability of ordinary people to be able to obtain short term loans when they want them may force society into accepting these loans companies as not only legitimate, but socially acceptable as well.
There has been an awful lot of criticism of the short term loans providers in the media and in Britain’s national and regional parliaments over the last few months.
Payday loans are not legal in all US states; those that do allow it set the APR at a maximum for the lenders who set up in the quick cash advance business.
OFT said that targeting vulnerable individuals was “unacceptable” and, until standards within the sector are driven up, enforcement action will be taken.
Adverts for short term loans could soon face stricter regulation, following the advertised survey by the Office for Fair Trading of Britain’s 50 biggest instant cash loan companies.