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A broad majority, to put a lid on expensive interest rates on payday loans

Shortly before christmas last year, concluded a broad political majority in favour of a deal to do up with payday loans. And Thursday morning, the agreement was

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A broad majority, to put a lid on expensive interest rates on payday loans

Shortly before christmas last year, concluded a broad political majority in favour of a deal to do up with payday loans. And Thursday morning, the agreement was finally passed in the Danish Parliament.

It has been a wish from several of years, and coronasituationen postponed the parliamentary work further, but now there are adopted three ceilings, which should spare the consumer from the too-expensive loans.

- today, we are implementing a showdown with payday loans, which have caught the particular young and vulnerable in incalculable gældsfængsler.

- It is high time for payday loans has been a problem for too many years, says trade and industry minister Simon Kollerup (S) in a comment.

He emphasises that the previously seen examples of the annual percentage rate (APR) up to 900 percent, which is over now.

With the agreement, prohibited consumer loans that have an APR of over 35 percent.

- With the new intervention, we put both a much lower limit to how high the annual costs may be, and we put a cap on how much you as a consumer maximum to pay back in interest and fees, says Simon Kollerup.

in Addition, it will be illegal to advertise for loans with an annual percentage rate of charge on the more than 25.

Denmark dishes hence into for the vast majority of the other 27 EU countries, where more than a dozen countries already have put the lid on.

the Agreement is entered into between the government, SF, Enhedslisten, The Radical, Alternative, Left, Danish people's Party and the New Civic. The Conservatives and the Liberal Alliance are against it.

the Ceiling of the APRC has been a great cam, and it is ended with a compromise.

It Think has for years fought for a political intervention and is excited about the agreement, although the council has talked for an APR-ceiling all the way down to 20 percent.

According to figures from Digital Lenders took consumers 358.000 payday loans in 2018 and borrowed a total of 822 million kronor. It is a doubling in two years, but still a small part of the market.

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