Following complaints from debt charity Credit Action, Facebook are investigating the legality of payday loans advertising placed on its website. Several payday loan and logbook loan companies are being investigated by Facebook, according to Credit Today.
Payplan recently had concerns about payday loans and logbook loans, and it appears that some companies are willing to ignore loan marketing legislation by omitting important information such as the APR percentage rate of their payday loans.
In an interview with BBC’s Radio 2, Payplan’s John Fairhurst said about payday loans that “Often the sums are quite small, just a few hundred pounds, but the interest rates charged are enormous. A thousand per cent APR is not uncommon.”
Young Facebook Users In Debt
Omitting this sort of information could mean that people who are desperate to pay their monthly bills use payday loans or logbook loans as an olive branch, unaware of the full terms and conditions relating to the cost of paying back the money. Young people especially, many of whom use Facebook as a form of social networking, may take up offers of payday loans and logbook loans and be susceptible to high levels of interest repayments of which they may not have been aware when the loan was first taken out.
Free Debt Advice from Payplan
Payplan advise 100,000 clients each year who have debt problems. If you feel that there is no solution to you debt problem, no matter how big or small, Payplan will be able to assess your finances and offer budgeting and money advice and present you with free debt solution options to help solve your debt problem.
Wednesday, May 21, 2008
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