uk personal loan industry

NAME : xxxxxxxxxxx

DEGREE : MASTERS

SUPERVISOR : xxxxxxxxxxxxxxxxx TITLE : UK personal loan industry

STUDENT No

UK Personal Loan Industry

This industry is responsible for the provision of loans to the interested customers . The individual person who is in need of borrowing some finances is liable to approach a potential lender within the UK market personal loan with an application for the needed money with a high anticipation for the possible approval of the application for the money . The recovery of the borrowed money is achieved through regular payments that are

made at intervals by the borrow , payments that covers the recovery of the borrowed amount of money together with some accumulating interests (Alpert Howard 2004 ,

.564

The current development has been through the use of the internet to make it cheap as well as quick for the arrangement of money lending when the need arises . Secured as well as unsecured loans are available within the companies in the UK that deals with personal loans . The difference being that the former type of personal loan is associated with the attachment of a particular type of a guarantee as well as lesser interests as compared to the latter . The latter is also much faster and are mostly suitable for borrowers who are in need of smaller amounts of loans (Wagenaar 2006 ,

.312 The lenders in the personal loan industry includes some building societies as well as banks in addition to other big lenders with major specialization in the business of personal loans in the UK . Other lenders in this industry include the Supermarkets , other lenders that are internet based , as well as department stores This variety of personal loan industry lenders has brought some major advantages

to the potential borrowers as the rates of interests has been significantly brought down in the industry . The provision for a bargain has also been an added advantage to the borrowers ( Alpert Howard 2004 ,

.67

Government policies as well as regulations are very active as far as the industry of personal loans in the uk are concerned . There is an existence of enacted parliamentary acts as well as legislations that have been incorporated for the purposes of safeguarding the consumers There also exists the office responsible with fair trading with specific purpose of protection of the borrower in this industry . The aims as well as the objectives of this office are achieved through enforcing a healthy competion as well as enhancing rules for the protection of the consumer . The office also conducts some market analysis for the proper working as well as a healthy communication channel amongst the consumer the business as well as the government . This office is also responsible with the administration of Credit License for the consumer

The parliament also passed an act 1974 introducing the Consumer Credit Act that is the basis of granting the Consumer Credit License (Barberis Robert 1998 ,

. 68 . The office is also responsible for enforcing other important elements of this act as well as updating the...