Loan firms could come under microscope
(03 January 2006)

Loan sharks and similar unscrupulous lenders may feel the sting of increased regulation under new proposals from an insolvency body.

The Insolvency Practitioners' Association (IPA) is urging the government to let it form a separate body to regulate the 600 companies mainstream banks apart who offer loan services, offering kite-mark accreditation to those which it deems to deal according to high and fair standards.

Loan firms which purposively target people with poor credit ratings would be particularly vulnerable to being frozen out under any new measures, which have been requested by the industry itself but are yet to be given the green light by the government.

With around two million people each year calling debt management companies for assistance, the nation's problems continue to mount and stiffer scrutiny of those who do not appear to deal with the public's interest at heart could reap dividends.

Payday loan customers, and providers, will be eagerly waiting to see whether the government and the IPA come to an agreement. Taking out a cash advance, though, is an exercise in transparency and plain dealing there are no hidden costs or caveats and the loan, and repayment rate, which you are offered is exactly what you'll get.


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