According to the Commons' Business Committee, some of the major portions of the industry
of credit of the country are very in a poor condition as far as their regulations is concerned. The members of the Parliament, a change of actions should now seriously come forward from the side of the government. Many lenders who allow that the borrowers can get their repayment date rolled over, is the main reason that people get under heavy debts. This roll-over should be limited to a particular extent.
Along with this, the MP's also felt that the regulators should also get the power of taking a quick decision of taking the licenses when they find any loan or credit company undertaking any unfair practice. They also issued warning that vulnerable and needy people were now facing a lot of pressure at such a time when the economy of the country is already quite weak.
The committee reached to a conclusion that it is imperative that the regulator should be given the power of banning those products that actually are harmful for the people and increase their chances to getting under multiple heavy debts.
They also raised concerns that the lenders of the payday loans who offer small loans for bad credit, at a rate of interest that is quite high to the borrowers. They were concerned that these borrowers are also given an advice that they need to pay this money back in just one month. The also wanted that this clause of rolling over the date of repayment month after month should also be limited to some extent.
The Office Of Fair Trading were from past quite some time were doing investigations about the means that various loans companies offering payday loans undertake while practicing. It is being expected that this review is going to come to an end by the time the year 2012 is going to an end.
The committee has also raised a concern about the upfront fee that is demanded by the companies who are known to give debt management services. They charge quite a big amount in the form of a fee for the advice which they offer to their customers about how to deal with their funds and how to manage their debts as well.
Adrian Bailey, chairman of the committee had to say that this is the time when the economy of the country is going through a bad phase, in a similar manner quite a lot of people are also facing similar kind of a trouble.