Payday loan companies still charging excessive rates of interest
The revelation that one particular UK payday loan company is charging up to 10,000% interest to some customers has again highlighted the difficulties which many people in the UK are experiencing at this moment in time. While there's no doubt that the UK regulators and the UK government have made substantial progress in reducing excessive rates of interest charged by certain companies in certain sectors in the UK, there is still much work to be done.
However, with liquidity within the UK banking sector yet to return to "normal levels" and credit card interest rates rising higher and higher there is concern that more and more people will be forced to consider such options as payday loans. In what is effectively a "robbing Peter to pay Paul" situation the introduction of excessive interest rate charges to the mix will literally push more and more UK consumers over the edge.
Even though the UK government has over the years introduced various funding initiatives to help those in dire situations, the criteria for such payments have been tightened and more and more people are being refused government assistance. While demand for such services as payday loans continues we are sure to be a flurry of offers being released into the marketplace.
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