The Office of Fair Trading will soon have the ability to suspend consumer credit licences immediately, thanks to new powers the Government has given the watchdog agency.
One MSP has recently called upon the Scottish Government to issue warnings to people about how dangerous taking out short term loans from payday advance providers can be, especially in light of how many are brought low by rocketing debt levels as a result every year.
It’s time for short term loan providers to be regulated much more closely when it comes to their advertising campaigns, experts say, as as concerns about borrowers falling prey to misleading loan agreements.
Labour MP and tireless consumer rights campaigner, Stella Creasy, has said that the new short term loans provider regulations as instituted by the government are only of ‘limited value’ in preventing payday advance lenders from trapping consumers in unmanageable prisons of debt.
If you’re fearful of running afoul of your creditors, especially those in the payday advance lending industry, you’re not alone – a new research project recently revealed that an overwhelming 93 per cent of Brits feel that they need to be protectedbetter from instant cash loan companies.
Church groups have called for a campaign to ensure that the amendment to the Financial Services Bill tabled by Walthamstow MP, Stella Creasy, gets approved when the bill gets its second reading in the House of Parliament next month.
Brits collectively owe nearly sixty billion pounds and, for once, short term loans companies can hardly be blamed as most of the debt is owed to a variety of sources and just a “smattering” to them.
A new survey conducted by YouGov, an international research company, into the attitudes and opinions of people who were or have been short term loans borrowers has caused something of a stir amongst those most passionately involved in the debate about the role of short term loans companies.
For a sizable number of British people the easy availability of high interest instant cash loans are becoming a habit that is hard to kick.
One financial adviser has recently spoken out against payday advance lending, stating that no one should ever use short term loans under any circumstances.