Payday Loan Laws for People of UK!

There is some news regarding payday loans industry for the people of United Kingdom. And the news is related to the new payday loan laws which are going to be applicable from the 1st of January 2011. The law is related to the limit which is imposed on the maximum amount that any UK citizen can withdraw from any of the financial aid program. So, as per the law the maximum amount that an UK individual can avail as loan cannot exceed more than 30% of his/her monthly salary. In addition to that all the information of an individual like the lender from where the loan has been taken, how many times borrower applied for the loan in a year, whether loan is paid or not etc. would be maintained in a database for further use.



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Not only that, payday loan laws also restricts an UK citizen to apply for the total number of loans in a year which is limited to 8 in a 12 months which cannot be exceeded in any circumstances. Also if the borrowed money is not repaid in the given time period then borrower can ask for installment plan and for this no additional fees will be charged. Unless the loan is not paid back the individual cannot opt for any additional loan. The best thing is in the event of not paying the loan on time is, the lenders have no right to harass or intimidate the borrower. And in case any of such things happen then the person can report about it to the DFI and can also fire a complaint against the lender.

On the whole this new payday loan laws is very good initiative from the government which not only protects the consumer right of the borrower but also minimizes the number of debts that is accumulating these days.


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