Payday Loans Reviewed

They find their victims unmistakable. Just as telephone scammers targeting under 90 percent of the rings.

Firms ‘fast loans’ / ‘quick money’ / ‘payday loan” pop up like casinos and pawnbrokers. So find them and around them. At present, the number is 163.

Nobody controls them

Neither the Bank nor the Financial Supervision Commission or the Commission for Consumer Protection. They hem are outlawed, yet not illegal.

Of registration in the National Bank, which means that just go and submit any sheets, documenting its existence as a “financial institution”. Not even to authorization.

Now managers are overwhelmed with legislative impetus … to legalize them – completely and even to impose a ceiling on the interest. As I understand, the fundamental question is whether it is 20 or … 60% annually.

In 2009, the state began regulating usury, which developed pawnbrokers. An ordinance that nailed to the ceiling of 3% interest, which can be put, an annual appreciation at most 43%.

This happened at a time when Pawnbrokers lend money at rates of 20% or more per month. In 2009, banks were still not completely tightened regime of lending – in part custom, but chilling the market has already felt. And in the same 2009-a BNB determine the regime to companies for fast loans will be registration.