Payday loans are something that are going to be around for a long time, even though this is not the best time for the Payday loan lenders to be in the market. There have been several FCA actions in the UK that have resulted in the streamlining of the industry. However, this is not something to worry about. It has to be noted that the FCA has recently capped the maximum interest charges at 0.8% a day. They have also restricted the escalating debt to be not more than 100%. These measures have been taken so that the total cost of the interest combined with the applicable fees never go beyond the initial amount that was borrowed.
The thing to note is that even though these measures can be depicted as being good in regard to helping stop bad lending practices, they tend to affect the Payday loan industry. loan2payday.co.uk has found that there have been several complaints about the industry and these are steadily increasing as well. The reason for that is the people are becoming much more aware of their rights and what they can and cannot do.
Payday Loans Are Here to Stay
Researchers at Loan 2 Payday have found that the FCA is working to provide several assurances for the Payday loan borrowers in the UK with regard to being victims of any unfair lending practices. It has started to put in some extremely strict measures in place that would work to make sure that the debts do not end up getting out of control, even if the borrowers are not able to make several payments. This is because the loan fees, as well as the interest, can never go beyond the amount that you borrowed.
Many Payday loan lenders have decided to go out of business after this rule. Nevertheless, it has been found that the demand for Payday loans continues to rise. loan2payday.co.uk has found that several Payday loan lenders tend to make enough profits with their loans even without the current rules and regulations affecting them, which is why they are not going to go anywhere, especially the larger companies. This is something that also makes it better for the customers, as they know that they can do business with companies that are reputable. Even though the number of lenders might go down, the Payday loan demand, as well as the debt levels, is not likely to change too much.
Another very important thing to note is that the Payday loans are not going anywhere because people do not have any other alternatives that have come up yet. This is also another important reason why such lenders are going to remain in the market and keep providing their services.
At loan2payday.co.uk, they keep you updated about all such things, on Payday loans as well as many other opportunities, such as raising your credit score quickly and where to look when looking at getting a loan. Keep coming back to their website for more up-to-date information as it arrives!