Doorstep lending firm International Personal Finance has announced that its draft legislation, to set a maximum APR for unsecured customer loans at 24% above the Hungarian base rate (6%), has been approved.
This 30% cap compares to the current situation where customers are limited to one loan of more than 65% from any individual lender per calendar year.
The draft legislation is scheduled to become effective for loans issued on or after 1 January 2012.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The firm said: "We will amend our product pricing and structure to meet the requirements of this legislation and, whilst we cannot be certain as to the impact this may have on the future performance of our business, based on our experience of similar changes we have made in the past we do not expect a material impact on the prospects of our Hungarian business."
The share price fell 1.97% to 219.1p by 14:55.
NR
-
Parental contributions to kids' university living costs could reach £14,000 a yearParents helping kids with university living costs face contributions of up to £14,000 per year, according to a report from HEPI and TechnologyOne.
-
Rightmove: property asking prices hit record highNews Rising demand for top of the ladder home is boosting asking prices, Rightmove research shows. Is now a good time to sell a property?
