Pay Day Loan Companies Face New rules.

As from November 26^th 2012, the way pay day loans operate will be changing. Customers who sign up to use a pay day loan or a text loan service will face a credit check or an a affordable assessment test this will make sure that the customer who applied for a pay day loan can actually afford the loan, when it comes to repaying the amount back.

If any customer who has taken out a a pay day loan or a text loan and they cannot afford to repay the loan back for whatever reason the pay day loan lender will have to freeze all interest and any charges owed.

All of these types of lenders weather it’s a pay day loan or a text loan provider will have to also make the fees or charges better understood on their promotional material, weather this is on the own website or other advertsing methods such as tv adverts, although most text loan lenders in the UK are already doing this there are a handful which are not.

If any pay day loan lender or text loan company is found to breach any of these new rules the OFT can revoke their licence meaning they will no longer be able to trade.

All this comes into effect on November 26^th but will this be to any help? We can only wait to see what happens.
For more information about text loans, or text loan lenders please visit our main website www.textloanlenders.com