Pay day loan companies should be subject to more regulation Assignment

Pay day loan companies should be subject to more regulation - Assignment Example Vega (2014) argues the loans offered range from  £100 to  £1000 and this is offered for a period of few weeks or months. However, these lenders face a lot of criticism. This is because lots of people argue that they lend money irresponsibly and charge very high interest rates to individuals (Bonnette, 2005). This is unlike the traditional lenders who required lots of details so as to lend money to their clients. In light to this argument, this essay shall attempt to evaluate if the pay day lenders should have their businesses regulated or not. As seen in the work of Vega (2014), pay day lenders subject their borrowers to misery. This is from the verity that they ask for very high interest rates to desperate individuals who wish to sort out their financial issues with immediacy. One would argue that these pay day lenders are simply on the move to make huge amounts of profit by frustrating poor individuals who lack better alternatives to their present situations. In fact, the Perry (2011) and Cresswell (2009) refer to the pay day lenders as the worst offenders that the society can breed. However, the pay day lenders defend their mission by arguing that they save situations that cannot get assistance from the traditional lenders (Vega 2014; Jefferson, 2012.). They also argue that their services are better as they prevent borrowers from yearly interest rates that are high and may rise to 400% (Vega, 2014). The most interesting part, though, is that more and more people are caught up with this system with the day. Pay day loan companies should be regulated by the government as they offer extremely high interest rates to their clients. As argued by Cackley (2011) in an event that the pay day companies are regulated, it will be easy for regulation to take place as the government will ask for a clear range of the interest rates payable by the clients. This means that the pay day companies will only deal with persons can