A Malta based finance company has been offering Payday loans to UK residents with annual interest of 2,255%. Pounds Till Payday is an internet based company that has enjoyed success in the UK and the US . The company offers customers loans of up to £1,000, though new customers must first take out £200 to see that they are able to repay the amount due. They will then be eligible for a loan of up to £1,000 if they successfully repay the loan.
However, concern has arisen over the huge level of interest being paid on the loans. The company charge £29.98 for every £100 they lend to customers. At the end of the maximum 31 day period, the company takes the initial money plus any interest and charges directly out of the customers’ bank accounts, at which point the customer may take out another loan against their next pay cheque.
With people as young as 18 able to get their hands on a payday loan, it is feared that the huge interest rates may cause young adults to fall into debt unnecessarily.
Payday Loans Company Charging Huge Interest Rates
Wed, 28 May 2008
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