subject: Lower The Rates Of Payday Loans: Credit Union Director [print this page] The director of a credit union which hails from West Midlands has asked the government to lower the sky-high rate of interests of the payday loans which are being offered by various high-street money lenders. In a similar manner, Martin Treadgold who us 6 Towns which is also a credit union from West Bromwich was also of the same view that these rates are not even ethical.
After the Office Of Fair Trading that is OFT made an announcement that they are going to conduct an investigation against the means that are used by the lenders who offer payday loans, the people of the credit unions also got a chance to voice their concern. Way back in the year 2010, when the OTF had conducted a similar kind of investigation, they had said that people are reaping in benefits because of their services.
Treadgold added further added that it would be great if the rate of payday loans are brought to an affordable level as are charged in various other countries of Europe. If seen carefully, a rate of interest which is set as high as 4000 per cent, is not only unethical but also unnecessary.
John Lamidey, working as chief executive at the Consumer Finance Association that is CFA, was of the view that headline of the APR rates were in reality not a genuine measure of the people's affordability. He further had to add that if one wants to put a restriction on the APR then one just needs to remove that very product away then ask the consumers what their choices are. This is how you also remove the competition from the market as well as remove financial options which are short-term services which people actually want to make use off.
He was also of the view point that today people are very much ready to take such kinds of loans instead of just depending on their credit cards or relying for financial options from the side of the banks. Their main concern is get hold of an amount with quick approval so that they can out en end to their cash crunch instantly.
Way back in the year 1974, last capping of the rate of interest of the loans was done and nothing as of now since then. At that time 48 per cent of the limit of the rate of interest was capped down. Britain is one place going on minus a legal cap.
