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New, stricter payday loan regulations take effect in Finland

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THE RULE governing payday loans were amended in Finland on Monday September 1.

The amendments – which include a maximum limit for interest rates on loans over 2,000 euros – were drafted by the previous government with the aim of clarifying the pricing of payday loans and eliminating unreasonable pricing practices. the payday loan market.

The changes are also intended to limit other credit-related expenses, such as the repayment period extension fee.

“The latest legislative amendment is an example of how we apply, step by step, fair and reasonable rules also in the credit market and prevent over-indebtedness,” commented Pihla Keto-Huovinen (NCP).

“We should not be lulled into believing that no further action is necessary,” she stressed.

Huovinen recalled Monday that payday loans have caused problems since their introduction and are partly to blame for people who slip into debt cycles that can be virtually impossible to break.

“These stories are sad and unfortunately common,” she said. “The number of people with bad credit has been on the rise for years. Payday loans are partly to blame. Aggressive and misleading advertising and unreasonable terms have made payday loans dangerous traps for those already in dire straits.

Aleksi Teivainen – HT
Source: Uusi suomi