A New Remedies Board for Quick Loans Must Monitor Interest Rates on Consumer LoansUncategorized
If you are short of money, it can be tempting to take a quick loan or consumer loan. But what many people overlook is that one can easily get up and pay 100% in interest on the very short loans.
The If the government wants to do something, and in connection with the launch of a new consumer policy package, a new complaints board has been presented, which is to look at the interest rates. The idea is that you can complain to the new quick-loan bank on interest that you think is exorbitant.
Maximum Annual Percentage
At the Consumer Council, it is seen as a step in the right direction, but Vagn Jelsøe, Head of Department of the Consumer Council, would rather have seen a real ceiling on the maximum annual percentage rate, APR – which covers all expenses in connection with a loan.
“In Germany, there is a practice where a loan of more than 100% of the normal cost levels is considered usury and is therefore illegal. Such a practice I would have liked to have introduced in Denmark, ”says Vagn Jelsøe to TV2 Nyhederne.
It is also expected that the Consumer Council will have a seat in the new council, whose composition will only be revealed later today, Monday 20 August.
At Conservative, one is skeptical about introducing a ceiling on interest rates. Here it is believed that it opens up a criminal black market where people come into greater problems than by having to pay high interest rates.
-The quick loans are used by ordinary families, for example, to borrow a sofa or a television. If you place more restrictions on loans, the families do not have the opportunity, says Brian Mikkelsen, finance and business rapporteur for Conservatives.
The new Consumer Credit Appeals Board is part of a total package that includes a total of 23 measures to increase the safety of the consumer.
What do you mean? Would it be better with a ceiling above the level of interest rates, rather than an appeal board?