Payday Loan Interest To Be Capped From Jananuary

The video discusses the rapid growth of the payday loan industry, now valued at 2.5 billion pounds, and the regulatory measures being implemented to curb excessive interest rates and abuses. The need for credit surged as bank lending decreased during the recession, leaving many without access to payday loans. New regulations could drastically reduce the number of lenders, potentially pushing borrowers towards illegal lenders. The government is empowering the FCA to prevent companies from evading rules by moving abroad.

What is the current value of the payday loan industry?

• 5 billion pounds

• 1 billion pounds

• 10 billion pounds

• 2.5 billion pounds

Why is the financial regulator implementing new measures in the payday loan industry?

• To encourage more borrowing

• To promote international expansion

• To reduce consumer costs and abuses

• To increase the number of lenders

What caused the increased demand for payday loans?

• Recession and reduced bank lending

• Government incentives

• High employment rates

• Increased bank lending

What is a potential risk for people who lose access to payday loans?

• Turning to illegal lenders

• More investment opportunities

• Increased savings

• Higher credit scores

How is the government preventing payday companies from evading new regulations?

• By allowing international expansion

• By giving the FCA power to stop them from moving abroad

• By offering tax incentives

• By reducing interest rates