Broad political agreement puts cap on payday loans

"We have taken the showdown with payday loans, that we have asked the danes in view," says business and enterprise minister. There is a Thursday evening con

Broad political agreement puts cap on payday loans

"We have taken the showdown with payday loans, that we have asked the danes in view," says business and enterprise minister.

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 is a loans total cost in percent.

It tells the minister of trade Simon Kollerup (S).

"We have taken the showdown with payday loans, that we have asked the danes in the view."

"Everyone has heard about the wild payday loans with an APR in the 800-900 percent. It's over now. We prohibit all consumer loans that have an APR of 35 percent," he says.

the Ceiling of the APR has been the major stumbling block in the negotiations.

That was last week so insurmountable, that the minister of trade Simon Kollerup decided to postpone the negotiations and provide the parties with a period of reflection.

Wednesday - about a week later – they were resumed before Thursday so come an agreement in place.

/ritzau/

Updated Date: 19 December 2019, 22:00

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