The Financial Services Bill which has just had its first reading in parliament will see the creation of a new regulatory body to replace the old Financial Services Authority as well as replacing some of the powers of the Office of Fair Trading.
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.
A way for those who need fast cash but are worried about getting into serious debt by taking out a loan with a short term loans company now have a novel choice which seems to bridge the gap between completely unsecured lending and a personal loan from a traditional lender like a bank.
The company that had its licence to trade cancelled by the Office of Fair Trading last month, together with another related company, has decided not to appeal against the decision and therefore is no longer able to offer short term loans.
It seems the expanding world of short term loans is not going to get rid of its controversial image any time soon and there are plenty of stories that illustrate the good and bad sides of the industry.
The Office of Fair Trading is currently investigating the short term loans sector in a move that has been welcomed by the industry representatives, the Consumer Finance Association, which represents the majority of the main players in the short term loans industry.
The Trading Standards Service is Northern Ireland’s answer to the Office of Fair Trading and, like its brother organisation over the Irish Sea, has been peering into the antics of the short term loans companies as some of them have been causing some concern to sections of the Northern Ireland community.
Payday loans company instantloansdirect say that most short term loan borrowers are simply not using their heads when applying for a loan.
Adverts used by a number of short term loans companies have been pulled from circulation by the companies after a newspaper investigation which exposed the possibility of them infringing the advertising code.
The minute you submit the details of the bank account into which you want the money paid, you are also authorising the instant cash loan company to take its repayment