Archive for the ‘Moneylion Support’ Category

Watchdog announces cap on pay day loan charges

Freitag, Februar 21st, 2020

Watchdog announces cap on pay day loan charges

The Financial Conduct Authority has established a limit from the sum of money payday loan providers like Wonga may charge for a loan. It is this enough to prevent folks from spiralling into financial obligation?

The theory is not difficult.

someone borrows a couple of hundred pounds from a payday advances company to tide them over until they receive their next pay cheque. Then they pay off the income they will have lent, as well as the interest, on time. The money can help to pay their household bills for those with poor credit records unable to borrow more cheaply from banks.

However in modern times, the payday advances industry happens to be criticised for asking exorbitant amounts to those struggling to pay off loans on time. Interest can rapidly swamp how big the initial loan, making borrowers sinking into never-ending debt. In certain nightmare situations, borrowers are chased by bailiffs for a lot of money, having lent just a couple of hundred. (mehr …)