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Nov 20, 2014
In July of 2014 the FCA put forward proposals for a cap on payday loan calculator lenders are permitted to use. The FCA's chief executive Martin Wheatley said "I am confident these new rules strike the right balance for both the firms and the consumer alike". This new proposal sets the tone to move to a more simple finance structure, which is both clear and transparent to all. We have listed the key points below for your convenience
1.Plain and simple
- finance firms are now capped at an initial 0.8 percent per day cap.
2.Plain and simple
- finance firms can no longer charge you more than £15 for a default fee.
3.Plain and simple
- finance firms total cost is now capped to one hundred percent of the original loan amount.
It's true this certainly will have a bearing on how loan calculator sites operate. From the 2nd of January when these changes are due to come into effect loan calculators will need to allow for both the initial rate of interest calculations whilst also taking into account the cap's and limits introduced by the FCA. It's fair to say loan calculator sites have their work cut out for them but I am sure they will live up to the challenge.
In short what more can I say Plain and simple finance structures will certainly benefit everyone in making this overly complicated and shady market place a lot more straight forward, For far too long loan calculators on Payday sites have been misleading and this will really force loan calculator site operators to finally tow the line. All in all for these reasons alone it certainly gets our vote.
That's all for now
Take care from all at simple finance.
https://www.fca.org.uk/news/fca-confirms-price-cap-rules-for-payday-lenders