DTI throws out plans for credit rate cap

A study of overseas credit regimes and interest rate caps was conducted by the Department of Trade and Industry (DTI) to assess whether imposing a limit on the amount credit unions and loan companies would improve lower-cost access to credit for low earners. Findings now contradict that intentions, says Consumer Minister Gerry Sutcliffe, so the government has decided it will not now add a credit rate cap as this is more likely to divert consumers to “less transparent and less appropriate products, or even to illegal loan sharks”. Experts, commissioned by the DTI, to investigate the e...