Getting loans is going to be harder within the United Kingdom with the new rules they are considering. It is being considered because it was discovered by the Learning and Skills Council that 9 out of 10 customers couldn’t even calculate basic formulas and numbers. Now, new regulations may require customers that need loans to take a test.
Numerous lack financial knowledge as a concern
As a response to the global financial crisis, the United Kingdom formed a Consumer Financial Education Body. The group found out that basic questions could not be answered by about 74 percent of Britons who have mortgages. For example, most did not know how a 1 percent rise in the bank rate would affect their loans, payday or bills. The basics of personal loan being unknown by so many makes a huge impact on the country.
A solution to test?
The UK is considering a test as one of their options. Customers getting a loan may just need to take a test first. The test would make certain consumers know basic features of the loan and financial products they are using. The questions might even have interest rate or the term of the loan they are getting in it. A declaration stating the borrower read and understood the terms of the loan is a suggestion given on how the test could be given.
How loans are sold
The Treasury and Business departments of the government are co-running the review of loan practices in the United Kingdom. Lenders might have to reveal the amount of interest that could be paid over time with this. Individuals may more effortlessly “start over" when they change some of the bankruptcy regulations as well.
No comments:
Post a Comment