Are Provident breaking the law

[tezza1234]

Now i might be wrong and probably am

 

 

but didnt a new law just come in,

something about once you borrow money,

you will never have to pay back more than x 2 the amount,

 

 

i take that to mean £100 borrowed, no more than £200 to be paid back, ever,

and £1000 would mean no more than £2000 back, ever,

 

 

But look on the provident website, they are offering loans like borrow £2000

and pay back £4400

or borrow £2500 and pay back £5500, is this not against the law.

[SabreSheep]

Think the law you are talking about is strictly to do with the Payday Loan Industry

[tezza1234]

Think the law you are talking about is strictly to do with the Payday Loan Industry

 

Really, wow, so now a PDL (while not recommended) can be cheaper than the likes of provident (also not recommended)

[queensclose]

i think your confusing it with what the original agreement was. if you borrowed £100 and agreed to pay back £130 at the end of the month then its limited on how high the debt can go if you don't make payments. with provident that is what you agreeing too as the interest rate without missing payment.

[Old Cogger]

In the 70s their was a Cap of 48% per annum = greed then stepped in!

[Mike_hawk]

Provi and its ilk [Home credit loan agreements] are excluded from the provisions of CONC 5A.2

 

http://fshandbook.info/FS/html/FCA/CONC/5A/2

 

http://fshandbook.info/FS/glossary-html/handbook/Glossary/H?definition=G3329