In the United Kingdom, new rules are being considered that would make loans for anyone that may need additional cash a little more difficult. It is being considered because it was found by the Learning and Skills Council that 9 out of 10 customers couldn’t even calculate basic formulas and numbers. They may soon require that a test be taken for those who need loans. Source of article – Getting a loan in the UK could require taking a test by Personal Money Store.
Concern that there isn’t really financial knowledge
As a response to the global financial crisis, the United Kingdom formed a Consumer Financial Education Body. The group found out that basic questions couldn’t be answered by about 74 percent of Britons who have mortgages. Individuals couldn’t even determine how a 1 percent rise within the bank rate would affect them. This lack of knowledge about the basics of the best personal loan can have huge impacts on the financial health of the entire country.
A testing solution?
A required test is a solution considered by the UK. Any customer that wants to get any type of loan — mortgage, online personnel loans, or automobile loan — could have to take a test. Basic features of the loan and financial products would be covered on the test. Example questions might include the interest rate of the loan or the term of the loan. One option that has been suggested to the test is a simple declaration the borrower has read and understood the terms of the loan.
The way loans are sold
Within the United Kingdom, the loan practices are co-run by the Treasury and Business departments of the government. This review is also going to be considering new regulations that require lenders to reveal the full amount of interest the loan would accrue over time. There is also a possibility that bankruptcy regulations would be shifted, allowing those that are truly without the ability to pay to really “start over.”.
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