It is done with the peace in flash credit country. A recent news report shows that the Singapore Authority for the Financial Markets imposed a penalty order on the director of a company that has presumably offered flash credit to consumers. Flash credits, also known as SMS or mini-credits or payday loan, are loans with a term of less than three months.
The market for 即日融資 has been properly cleaned up in the past two years. The recently imposed order of court order illustrates how relevant the supervision is – and remains – on providers of payment loans.
Best payday loan explained further
In order to grant credit to consumers, the lender must have a license. An exception applies to this rule if the credit has a term of less than three months, and only insignificant costs are charged to the consumer. Insignificant costs are fees of no more than 1% of the principal amount of the credit on an annual basis. These costs include both interest and other costs under whatever denominator, including administrative and handling costs. Providers of loan credits sometimes try to circumvent this permit obligation through constructions.
Measures AFM
The country imposed a fine of a certain amount on offering payday credit without having a license. Government granted loans with a term of less than three months, and advertised that no costs were charged. It was therefore in principle outside the permit requirement. But to qualify for the credit, the consumer had to issue a guarantee. …
