Consumers run the risk of being cut off from the short loan after interventions against payday loans, think Finance Denmark.
Consumers will be protected with a ceiling of 35 percent over the annual percentage rate (APR) on consumer loans.
this is the message from the banks ‘ trade Finance Denmark, after which on Thursday evening entered into an agreement about action against payday loans.
the Organization, which itself has proposed a ceiling of 50 percent, airs, however, its concern over the agreement.
– That there will be a ceiling now, we must as a society be satisfied with. We had proposed a slightly higher ceiling in order to ensure the right balance between having access to the short loan without being eternal debt.
– With a ceiling of 35 percent, we can be a little worried that some providers will not offer short loans, and that consumers thus cut off the possibility.
– But we must wait and see, says ceo Ulrik Nødgaard in a press release.
the Agreement on action against payday loans is concluded between the government, SF, Enhedslisten, The Radical, Alternative, Left, Danish people’s Party and the New Civic.
With the agreement prohibits all consumer loans, whose annual percentage rate exceeds 35. Today, there are, according to the ministry of Business and industry loan with a APR of 800-900 percent. But those are now put a stop to.
the trade Association Digital Lenders, representing kviklånsbranchen, takes the political decision “to note”.
– We expect our members live, so that their products meet the policy requirements to the market, ” says Jens-Ole Kyhl Klitgaard, spokesman for Digital Lenders, in a written comment.
In the Consumer council Think they have “difficult to get my arms down” of the agreement. The organization has for years struggled to get the politicians to intervene to kviklånene.
It tells the deputy director Vagn Jelsøe. He does not share the banks ‘ concern about the short loans.
– We have seen on the market, that if you will have a loan in a store, for example, to finance a new refrigerator or a new washing machine, is the APR typically of about 15 and 35 percent.
– We find it difficult to see that ordinary people need a fast loan for these kinds of should be prevented by the here, says Vagn Jelsøe.
the Consumer council Think has plæderet for an APR-ceiling of 20 percent. According to Vagn Jelsøe however, it is still a good deal, as it “gets rid of the most expensive payday loan”.
/ritzau/
