- 4 years ago
- Wedding: July 2013 - UK
So I’m reading about the latest payday loan scandal… in this case, firms writing fake letters from imaginary solicitors, in order to scare clients in arrears into paying their debts. Often, they even charged clients for receiving these letters. I was shocked to hear that criminal charges would not be brought, and am very glad to hear that they are now reconsidering.
I’ve been following this story for ages, ever since the Church of England launched its “war against payday loans” and attempted to set up microfinance networks in order to replace them, in order to “protect people from exploitation”.
What I don’t understand is why we don’t have any ursary laws in the UK… many other countries, such as Italy, legally limit the amount of interest which companies are allowed to charge. In their case, I think the upper limit is 30% per annum, which seems incredibly high. Amazingly then you cannot use certain credit cards in Italy because they violate the limitations on ursary…. I never realised that the rates on some cards were so high.
Point being… I’m really surprised that the government is not doing more to prevent this problem. They talk the talk, but are yet to act…