29th March 2015
With 2015 in full swing, the payday and instalment loan industry is still around and still going strong but with new regulations in place set by the Financial Conduct Authority (FCA). When looking for loans we advise not always borrowing from the same lender just because they approve you all the time but to apply with a lender that will give you the best rate when repaying your loan.
At The Lenders List we recommend searching and comparing the payday loan and instalment loan market because this type of loan is not the cheapest way to borrow but should be one of your last options if you have to take this route. Always be on the lookout for new payday loan lenders, as they enter the market after analysing competitors and look to compete or better their deals. Taking out a loan with a new payday loan company and changing from an existing lender could possibly save you money by picking a lender with a better APR, so have your eyes peeled when looking at the rates.
From 2nd January 2015, the FCA implemented capping rules to the short term loan industry which affected a number of companies that trade in this market. The FCA started regulating the UK financial industry in 2014 and replaced the existing regulators the Office of Fair Trading.
The payday loan market has been heavily criticised in the last few years with the high interest rates they charge and the emotional and financial troubles suffered by consumers that the payday loan market was spiralling out of control and something needed to change.
With the FCA in charge now they want to make this a safe environment for consumers and protect them when entering into agreements with payday loan companies for 2015.
Some of the changes implemented by the FCA are as follow:
For a full guide to the changes please go on to the Financial Conduct Authority website where you will find more details.