Now they are expensive loans public

From today, 1. July, it is no longer legal to offer animal consumption and payday loans in Denmark.

It informs the ministry of Business and industry in a press release.

the Decision to prohibit the expensive loans were taken shortly before christmas eve, and then, the law was finally adopted in the beginning of June.

the Legislation means there is now set a limit for how much a payday loan may cost, and how much a customer maximum can end up paying back.

Where before in time almost was not any limits to the costs connected to the loan - the so-called annual percentage rate (APR), need payday loan now maximum have an APR of 35 percent.

at the same time maximum end up paying 100 percent on top of kviklånets value as a result of the new rules.

in Addition, it is prohibited to place on the market payday loans if the company offers loans with an APR above 25 percent, and finally, it is prohibited to market payday loans, in connection with the marketing of spilleudbydere or games on the tv.

the Rules also apply to loans between individuals.

The new law will not apply retroactively, so loans taken out before 1. July, may well have a higher APR than 35, but the goal of the legislation is that the most expensive loans with the passage of time become extinct.

- I am proud that we now introduce some rules, there will be very many people – not least people who have it hard – for good. This is not just a checkmark on a piece of paper – it is something that can be felt among those who need it most, says the minister of trade Simon Kollerup in the press release.

the Law has been adopted by all political parties, with the exception of the Liberal Alliance and The Conservatives.