UK Payday Loans to be restricted

Nearly a week goes by without a news article appearing online or in some publication about so-called payday loans. These differ from log book loans in that there is no requirement to secure the loan; rather it’s only required that the applicant has a job and an income. Late last year, MPs promised that there would be a law change that would limit the amount of interest that can be charged on loans. This follows complaints that the APR of some loans were as high as 4000% (though the loans are actually designed to be only a month long, and on a month ineterest rates are generally at the 125% mark.) Let’s wait and see what happens when the law gets passed and how it is structured!

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