- We have taken the final showdown with exorbitant payday loans, says trade and industry minister Simon Kollerup (S) after the agreement.
There is a Thursday evening concluded a broad political agreement on action on payday loans.
With the agreement prohibits all consumer loans that have an APR of over 35 percent. The APR of a loan the total annual cost in percent.
- We have taken the final showdown with exorbitant payday loans. It must be the end of that drive business in the debt spiral and personal tragedies, as we have seen examples of this in recent years.
- Everyone has heard about the wild payday loans with an annual cost in percent of 800-900 percent. It's over now. We prohibit all consumer loans that have an APR of 35 percent, says trade and industry minister Simon Kollerup (S).
the Agreement is entered into between the government, SF, Enhedslisten, The Radical, Alternative, Left, Danish people's Party and the New Civic.
the Ceiling of the APRC has been a great cam.
Since the negotiations started, played the government out with a APR cap at 25 percent, and the differences have been so great, that the business affairs last week took a break in the negotiations.
The Radicals have been the big joker, among other things, because the party in the general public would not lay down an APR-ceiling.
Erhvervsordfører Katrine Robsøe (R) is pleased with the agreement.
- It is a good balance, especially when you see it (the APR cap, red.) together with the remaining elements of the package with omkostningsloftet and the very massive markedsføringsregulering, as we get made.
It was a radical crusade to get into the negotiations, she says.
the introduction of a marketing ban, which means that companies that offer loans with an APR above 25 percent, must not market any consumer credit whatsoever.
As part of the agreement, there will also be a stop put to business models, where companies earn money from reminder fees and other penalty charges.
Concrete will be put in a omkostningsloft, so maximum can get to pay twice the amount of the loan in interest, fees, charges and repayments.
Enhedslisten and SF had originally wanted an APR-ceiling of 15 percent, but erhvervsordfører Lisbeth Bech Poulsen (SF) is satisfied.
- here is all about protecting ordinary people against letting themselves be tempted by loans, as the term may be so expensive that they almost can be impossible to completely get rid of.
- Kviklånene destroys people's lives. It stops now, she says.
About a year aftalepartierne will meet again to discuss the agreement.
- I still think that 35 percent is too high, and when we meet again in a year, it's something of it, I will look at, say erhvervsordfører Victoria Velasquez (EL).
She is still pleased with the agreement and says that "we can discuss whether you have not received an APR of 25 percent in through the back door, in relation to the rules which we have made on the placing on the market".
Torsten Schack Pedersen, who is the Liberal party forbrugerordfører, welcomes the agreement framework wide.
- It is a combination of several things with an APR-ceiling and a kreditomkostningsloft.
- It is action in relation to the placing on the market and against the gray market, for example, on Facebook. And it is also a undervisningsindsats for primary school pupils and secondary school pupils, he says.
/ritzau/Updated Date: 19 December 2019, 23:00