THE REGULATIONS governing payday loans were amended in Finland on Monday, 1 September.
The amendments – which include a maximum limit for interest rates on loans exceeding 2,000 euros – were drawn up by the previous government in an attempt to clarify the pricing of payday loans and weed out unreasonable pricing practices from the payday loan market.
The amendments also seek to rein in other credit-related expenses, such as charges for extending the re-payment period.
“The latest legislative amendment is an example of how we are, step by step, pursuing fair and reasonable rules also in the credit market and preventing over-indebtedness,” commented Pihla Keto-Huovinen (NCP).
“We must not lull ourselves into believing that no additional measures are necessary,” she underlined.
Huovinen on Monday reminded that payday loans have caused problems ever since their introduction and are partly to blame for people slipping into debt cycles that can be all but impossible to break.
“These stories are sad and unfortunately common,” she said. “The number of people with a bad credit record has grown constantly for years. Payday loans are partly to blame. Aggressive and misleading advertising and unreasonable terms have made payday loans dangerous traps for people who are already in a difficult situation.”
Aleksi Teivainen – HT
Source: Uusi Suomi