The Provision of High-Cost Credit
It is specially the full situation in those portions of this market where a small amount of credit have reached stake and/or the expenses of credit are much greater than the common. The high expenses of the credit product may derive from a number of sources, including not restricted to the fundamental interest, expenses mixed up in summary of the credit agreement, costs or penalties set off by non- or belated payment of loans, and costs for going overdrawn. The customer dilemmas connected with high-cost credit items are twofold. The costs in themselves can be excessive, undermining the consumerвЂ™s payment capacity and making the consumer more vulnerable to unexpected financial difficulties in the first place.