From a consumer point of view, are there still any needs for legal changes to better regulate loan issues? is what is currently enough and you would not mix anything in this boiler?
I am not an expert, but it seems to me that this industry is already regulated so much that it seems to me that further regulations are unnecessary.
Real interest rate
The most important issue, i.e. the maximum real interest rate on the loan, has already been introduced. Another issue is secondary and not as problematic as usury loans that were once.
Now it works really well – I don’t think I would change anything. From the point of view of money lending companies, the biggest problem is people who fail to meet their obligations.
Therefore, the collection procedure should certainly be improved. I am referring to the court and bailiff apparatus because it is often the case that the bailiff does not even give up his task and assumes that there is nothing to waste time because nothing will be found. I would do some register in which information would be given how many loans.
I would make a maximum loan limit of 2 so that people do not take out loans in more companies, and do not fall into a debt loop, which is associated with the need to declare consumer bankruptcy and all those unpleasant things connected with it.
Introduce a debt limit
It might be unpopular, but I would introduce a debt limit on quick loans up to USD 20,000 per person max. Because of such 20 thousand USD, you can quickly make 40 or 50 thousand USD.
Declare consumer bankruptcy
It is important that these are not amounts that are too large and the person who incurred them will simply have problems with repayment, they will have to declare consumer bankruptcy, which is not always possible, As a person who thinks that the state should not interfere too much with the market – I believe that nothing should be done.
The invisible hand of the market will defend itself. The highest state should act as an arbiter. So pass judgments and help you enforce those judgments efficiently.
As ordinary consumers, we do not really have an insight into who is in debt, whether there are any problems with repayment – we do not have access to all these reports, statistics, etc. on the basis of which we could form opinions on this subject.
And since we don’t have all this, it’s difficult to know if any changes are needed, because maybe no changes are necessary?