2. Once again in the UK, banking scandal this week, Conservatives and
Labour parties are in a struggle to sort out a solution to it Conservatives
are the natural supporters of the financial institutions while Labour party
is held instrumental in allowing the scandals to happen Whenever big
scandals happen it shows that private players, Capitalists and other
people have their legitimate participation in it For instance, Barclays and
Libor who did enter to bait inter day lending prices and were held
contempt by law ministry Similarly BA has done price-fixing on the
interest rates that ruined the big investors in the New York from time to
time
3. However, scandals affect other sections of society that are connected
with banks and financial institutions The unemployed youth, senior
citizens who are not the breadwinners get into scuffle with banking
instruments and face acute difficulties in getting emergency loans from
banks on unsecured personal loans Banks began to cap the short-term
lending due to lack of security by following the strict regulations and as
the result these low income groups turn to payday loan advances They
have become relatively easier to obtain because of various reasons The
Payday loan lenders have come up with wonderful schemes that does
benefit in form of emergency cash to make quick payments of pending
dues
4. As these payday institutions do not make a check of consumer's credit
history they are colloquially referred as 'no check payday loan'
Government Measures Can Reduce ‘Emergency Loans’ of ‘no
Check Payday LoanÂ’ With the Capitalism in dominance, in the UK, will
there be a systematic approach in protecting citizens from the banking
frauds to which people are getting into a wheel of banking fatigue If
something fast is not done, then in the next ten years a numerous frauds
and scams will occur People will be found in a fix unable to make
judgement on taking emergency loans, short-term or long-term whatever
may it be Certain changes will systematically set things in order and low
living sections in the society can take a deep breath to relief
5. Tax reliefs and government subsidies are first option to protect capitalist
and industries while they are most likely in a fragile state of affairs Does
the same kind of help is extended to the low profile and jobless groups? It
should be doubted otherwise why do many people end up knocking the
doors of the payday loan lenders? Improper support to the unemployed
by the government is due to lack of funds to operate businesses and in
addition to this, banking frauds, scams, and price fixing on interest rates
have slashed the profits of companies and affecting the economy of the
country Payday loan advances have thoroughly dominated the
short-term lending markets because they are easily available and
emergency cash on time can stop credit score of borrower from getting it
affected Although do warn borrowers about lending terms and
conditions, the emergency loans to cover the immediate expenses do
blinds borrowers' foresight In order to control money and liquidity flow
from and into banks, government should not allow frequent bail out to
banks, private and public companies because these are the institutions
are in running due to taxpayers' money
6. In order to set right the banking system in order, the Bank of England
has pumped up funds to regularise the cash flows in Banks and now it is
not determined to do it so, it does not want to risk the taxpayers' money
Private sector has made an investment of 100 billion pounds and this will
force the taxpayer to pay back 300 billion pounds over the coming next
three years At the same Payday Loans time, ‘no check payday loan’
lenders government does not want to enforce greater competition and
choice because companies are siphoning smaller companies on the
concept of competitive advantage and also companies are downsizing
workers for effective corporate building Therefore, government will have
to cap regulations and set eye on financial institutions to make every
section to benefit otherwise it would be vulnerable
