Pay Day Loans new regs coming

The Government Office of Fair Trading will be shortly revealing the results of a year long study into the effects of companies offering what has become known as Pay Day Loans. Something to tide you over until your salary is paid in theory.

The interest rates attached to these loans are astonomical, some over 4,000 pct and charities who deal with individuals who can no longer cope with their outstanding financial committments, are seeing Payday loans being behind the recent surge in numbers of people seeking help.

Through the OFT, the Government is looking to place advertising restrictions on this type of business and have the companies offering them overseen by the Financial Conduct Authority (FCA).

The new rules are expected to come into force in April 2014 but whether they offer the protection that vulnerable and desperate people need when looking for debt solutions urgently, remains to be seen.

Looks like a train wreck that hasn't happened yet.