Staffordshire County Council point out that, because of a recent tightening of US credit laws in a number of states, some American lenders may be coming to the UK because payday loans: “Exploit a loophole in existing UK consumer credit laws…”
These loans bypass existing laws governing credit because they normally involve less than four scheduled repayments. Money is often in the consumer’s bank account the same day, without the benefit of the normal ‘cooling off’ period.”
Short Term Loans
Also in the US, the Protecting Consumers from Unreasonable Credit Rates Act of 2009 is before Congress. If signed into law it would have a dramatic impact on some lenders, allowing them to charge interest of only 36% on certain short-term loans.
