Payday Loan Lenders In Agreement of New Rules

The lenders of payday loans are in agreement with new rules which have been introduced in order to help out borrowers who are stuck in the troubles of debts.

Norman Lamb, Business Minister had to say that till date in all 4 trading association that is a representative of around 90 percent of the payday loan lending as well as short-term loans lending industry has put into their signature on the new charter for customers. 

According to the terms of this agreement, if the borrower is not able to pay back the borrowed money in 60 days above the repayment date then the payday lenders will not be charging any rate of interest from him in future. Those borrowers who come in agreement to the payment plan will get their charges frozen.

This agreement will come into effect on July 25^th. It was been signed by the British Cheque & Credit Association, the Consumer Finance Association, the Finance & Leasing Association, as well as the Consumer Credit Trade Association.

Lamb said that is agreement is a positive step but it is required that more additions have to be done into it. More has to be done in the case of continuous payment authority.