Getting loans is going to be harder within the United Kingdom with the new rules they’re considering. Since 9 out of 10 customers, according to the Learning and Skills Council, can’t calculate basic numbers, that is being considered. Those who need loans could possibly be required to take a test first.
Concern that there is not financial knowledge
The global financial crisis caused the Financial Education body to be formed by the UK. Figures that were lately released by that group found that almost three-quarters — 74 percent — of all Britons with mortgages could not answer basic questions. Individuals couldn’t even determine how a 1 percent rise within the bank rate would affect them. The entire country is impacted by this lack of knowledge about basics of personel loans.
A solution to test?
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 auto loans for bad credit — will have to take a test. The test would make certain consumers know basic features of the loan and financial products they are using. The questions might even have interest rate or the term of the loan they’re getting in it. Many think there should be a simple declaration given the terms of the loan have been read and understood.
Reviewing how loans are sold to consumers
In the United Kingdom, the loan practices are co-run by the Treasury and Business departments of the government. Lenders might have to reveal the amount of interest that could be paid over time with this. 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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