Regulation and payday lenders – April Fools wasn’t so funny

Changes in the way immediate short term lenders (payday lenders) can operate in the UK

On the first day of April this year the UK was up for some maybe not all too welcome changes.  To start the ball rolling the Office of Fair Trading as well as the Competition Commission were to gracefully bow out. With it, comes the regulation of payday lending and changes in the way immediate short term lenders can operate. No more quickie short term loans for the country – that’s not funny. Especially when things like taxes and energy bills are climbing up the ladder towards unaffordable, instead of giving everyone a break. Snap! Actually sorry that’s not a joke either.  The Financial Conduct Authority (FCA) will take over from the OFT and aims to take on the regulation of over 50 000 firms in the industry of consumer credit. Of course it is the payday lenders which will be intensely scrutinized.  As usual they will look into customer care, and whether the payday firms lend to people that cannot pay the loans back. They will be looking at capping, and how much can be charged for the loans which the government has been threatening for a couple of years.

So there is no joke there – it won’t be that easy to get credit anymore. However the government is sincerely hoping that you will be able to find an extra 120 pounds a year and hand it over. Ok this must be the joke! Nope.  After the past few lean years the fattening of the calf must be funded and the government needs to make up for running on low supplies.

As far as water goes, citizens of the United Kingdom will have to contend with an average of a 2% or 8 pound rise in their bills. There are areas like the Thames Water area that could see rises of up to 3.4%.

One sector that will be smiling broadly is pensions. The government is dedicated to return this failing system to health. Pensions will rise by whatever is the highest, inflation or 2.5%, basically the ‘triple lock’ that the government promises to keep in effect until 2020. September will see pensions rise by 2.7%

No jokes for medicine in Britain either as prescription charges go up by 8.05 pounds. Out of the whole of the UK, Britain stubbornly persists in charging for pharmaceuticals.

Nobody likes it when you poke fun at their home, especially those foreigners, so if you are a migrant worker you will no longer be able to claim any kind of housing benefit.

Should you find that all very dismal, nothing like a joke that isn’t funny, well chin up. At least the large corporations are wiping their brows with relief to find that it all was a joke as far as it concerned them. Over the next 2 years the tax that they will have to pay on their profits will drop from 23% to 20%.

April Fools can be so much fun!