jimc99
Member of DD Central
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Post by jimc99 on Oct 27, 2015 4:30:21 GMT
I see on the news that the owners of Money Shop have been hit with a hefty fine I think to do with the high interest charged on their loans.
As they are in a similar business to our Cash Shop does anyone know if CS is likely to suffer a similar fate...and could they survive it?
Maybe some reassuring words from Ed?
Edit...Ah I see that the fine was because of poor credit checking of customers leading to loans they were unlikely to afford to repay.
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webwiz
Posts: 1,133
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Post by webwiz on Oct 27, 2015 8:43:46 GMT
Money lending is different to pawn as with the latter there is no obligation to repay.
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james
Posts: 2,205
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Post by james on Oct 27, 2015 9:23:22 GMT
Cash Shop also offers personal loans. All personal loan vendors are potentially liable to assorted penalties and costs if they are ruled to be lending to customers who can't afford the credit being provided. I've no idea how well Cash Shop manages this. Given the up to three month term and interest rates these loans appear to be covered by the rules relating to "payday lenders". The initial fee combined with the short term and low amount borrowed is partly responsible for the high APR.
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