New Payday Loan Laws in 2010 for UK Residents
For the people of United Kingdom, there is some news regarding the payday loan industry. New Payday Loan Laws have been made and it is applicable from 1st of January, 2010. From now onwards, there is a limit imposed to the maximum amount that can be withdrawn using this financial aid program. The maximum amount that can be availed cannot exceed more than 30% of the monthly salary of an individual. In addition to this, all the information of an individual would be maintained in a state wise database like the lender from where you got the loan; whether the loan has been repaid or not, how many times have you sought out for the loan in a given year etc.
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In addition to this, the Payday Loan Laws restrict the total number of loans that an individual can procure. From now onwards, it is limited to 8 in a 12 month period and under no circumstances it can be exceeded. In the case if the money is unable to be repaid within the given time period, then the person can request for an installment plan and the good thing is that no additional fees would be charged. Until and unless the loan is repaid, an individual cannot procure any additional loan. The best thing is that in the event of not paying back the loan on time, the lenders have no right whatsoever either to intimidate or harass you. In any situation if such a thing is done, then the person can report about it to the DFI and can file a complaint against the lender.
The New Payday Loan Laws is in fact a very good initiative from the government to protect the consumer rights and to minimize the number of debts that is accumulating these days. When people would obtain fewer loans, then there would be less cases of bankruptcy and this in turn can give rise to a healthy economy.
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