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Public 'want government to cap credit interest rates'
http://www.x404.co.uk/forum/viewtopic.php?f=19&t=10124		 Page 1 of 1
Author:  Amnesia10 [ Sun Aug 22, 2010 12:50 am ]
Post subject:  Public 'want government to cap credit interest rates'
http://www.bbc.co.uk/news/uk-11050340

Quote:
Nearly seven people in 10 want the government to impose a cap on the interest rates that can be charged by credit companies, a poll suggests.

Plans already exist to ban excessive rates on credit and store cards.

But campaign group Compass claims its survey of 2,095 people shows the public want tighter controls on all forms of credit, including pawnbroking and so-called payday loans.

It says the unsecured credit sector "causes misery for thousands".

Research published earlier this month by Consumer Focus suggests 1.2 million people are now taking out short-term payday loans every year, borrowing a total of £1.2bn.

Such loans can provide a quick and efficient way of getting hold of credit, but some providers have been criticised for charging interest rates of more than 2,500% a year.
Author:  pcernie [ Sun Aug 22, 2010 7:37 pm ]
Post subject:  Re: Public 'want government to cap credit interest rates'
I just hate the fact that the public are that thick to begin with... :(
Author:  Amnesia10 [ Sun Aug 22, 2010 8:00 pm ]
Post subject:  Re: Public 'want government to cap credit interest rates'
I agree with them on this. Far too often you get loan sharks being allowed to get away with this. The government do not have the balls to stand up to banks and mandate a cap on rates. If the risk element is too high then do not lend.
Author:  JJW009 [ Sun Aug 22, 2010 8:16 pm ]
Post subject:  Re: Public 'want government to cap credit interest rates'
Remember, payday loans are fixed term due after a very short period. There would be no profit if the interest was in line with long term loans. If they fix interest rates to a low level, then the lenders will just charge "arrangement fees" to make up the difference.
Author:  Amnesia10 [ Sun Aug 22, 2010 11:09 pm ]
Post subject:  Re: Public 'want government to cap credit interest rates'
JJW009 wrote:
Remember, payday loans are fixed term due after a very short period. There would be no profit if the interest was in line with long term loans. If they fix interest rates to a low level, then the lenders will just charge "arrangement fees" to make up the difference.

The whole payday loans industry need to be regulated by the Bank of England. Otherwise cowboys and criminals will use it to launder profits.
Author:  l3v1ck [ Mon Aug 23, 2010 7:12 am ]
Post subject:  Re: Public 'want government to cap credit interest rates'
Screw the caps. If people are foolish enough to borrow long term on credit cards, then that's their own fault. Banks will just find something else to make money on. Charging for current accounts or cash withdrawals for example.
Author:  Amnesia10 [ Mon Aug 23, 2010 1:42 pm ]
Post subject:  Re: Public 'want government to cap credit interest rates'
l3v1ck wrote:
Screw the caps. If people are foolish enough to borrow long term on credit cards, then that's their own fault. Banks will just find something else to make money on. Charging for current accounts or cash withdrawals for example.

So as long as it does not affect you, you are willing to let it ruin the lives of millions? The banks need to get smaller and be a lower share of the economy. All they do is live off the rest of the economy. they do not create anything. They have not lowered the cost of credit to private industry that came about through government policy and cheap loans from China. A cap on interest rates that keep people in poverty is perfectly fine, and I would be willing to support a cap on all other bank fees and charges as well. The banks lower the profits of business through fees and charges and are a huge drain on the economy as a whole.
Author:  l3v1ck [ Mon Aug 23, 2010 9:52 pm ]
Post subject:  Re: Public 'want government to cap credit interest rates'
No, I just think people should be responsible for their own finances. I also think basic banking services should remain free, but that might not happen if you legally limit banks in other areas.
Author:  Amnesia10 [ Mon Aug 23, 2010 10:17 pm ]
Post subject:  Re: Public 'want government to cap credit interest rates'
l3v1ck wrote:
No, I just think people should be responsible for their own finances. I also think basic banking services should remain free, but that might not happen if you legally limit banks in other areas.

That is no better than the rich expecting the poor to pay for their free banking. Yes I like free banking and I an well in the black. The problem is that if you allow banks to keep millions in poverty to maintain your free banking then no matter what the government do social mobility will be stolen by the banks. I want free banking, but I do not think that this is a zero sum game, The government should clamp down on fees and charges. Screw the banks. They are a utility subsidised by the government through the Bank of England guaranteeing them independence no matter how much they screw up. They have the Bank of England to provide them with near free money yet all the banks have put up credit card and loan rates. The whole banking sector needs to be slimmed down considerably.
Author:  l3v1ck [ Mon Aug 23, 2010 10:50 pm ]
Post subject:  Re: Public 'want government to cap credit interest rates'
Just a few simple finance lessons in school would make a massive difference.
Author:  Amnesia10 [ Tue Aug 24, 2010 8:23 am ]
Post subject:  Re: Public 'want government to cap credit interest rates'
l3v1ck wrote:
Just a few simple finance lessons in school would make a massive difference.

Yes but there are some people who need to be protected from themselves.
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