5 expected changes over payday loans
Political parties have their eyes trained on the payday loan industry to exact positive changes.
11:27 04 May 2013
With recent attention on payday loans, it’s difficult to sort out what might result from all the attention and the proposed changes for the businesses. There’s no doubt that many people may have to rely on the presence of such businesses from time to time to get over temporary financial hurdles. Here’s what we can expect regarding payday loans:
- Interest rates—this will continue to be a hot topic among politicians as well as the general public. Currently the pressure is on for payday loans to reduce their interest rates; prolonged attention will most likely yield some positive results in the future.
- Clarity—another aspect that has been critiqued is the level of communication regarding the payday loans terms, repayments, and interest rates. Payday loans will be making an effort to ensure customer understanding and provide clear terms.
- Location—discussion over limiting the number of payday loans appearing on high streets will most likely yield a wider area for these offices, with hopefully greater accessibility to multiple areas.
- Competition—practices that can help stimulate competition between the different payday loans offices are being reviewed to ensure that there is a fair amount of competition that will benefit consumers.
- Legitimacy—there has been attention turned towards payday loans offices which do not follow the typically expected behaviours, and have been labelled as rogue entities. There is a desire to eliminate those to avoid giving all payday loans offices a bad reputation.
The various concerns seem to be under scrutiny from all political entities which will no doubt mean positive changes will be seen in the near future. Consumers can safely expect at least a few benefits regarding payday loans to come to fruition, and payday loans office can expect an improved business reputation and potential increases in their customer base. These, overall, seem to be mutually beneficial changes.