My good friend Wayne bought a new car today. He’s taken a small finance agreement out on the car. Reminded me of one of my pet hates. Loan penalty fees. Why are we forced to pay all of the interest, through to the end of the term, if we’re willing and able to pay back the outstanding balance today? If I went to a financial institution and deposited a large amount, promising to leave it there for 10 years, but then took it all back out after 1 year, they wouldn’t cough 9 years interest. So why should we?
The Department of Trade and Industry are currently considering changes to the woefully inadequate 1974 Consumer Credit Act. An interesting statistic is that around 70 per cent of all personal loans are settled early, often under the weight of heavy charges.
While I’m on the subject of the Government. According to http://www.contractoruk.com/, a source close to the Treasury has said that IR35 is set to be abolished with effect from the 6th April 2004. Dawn Primarolo was recently pressed in the Commons to detail how much IR35 has cost the Government to implement and police, against the amount that it has brought into the Treasury. The questions were asked last week by Shadow Paymaster General, Mark Prisk. More info here.
Thank you Mr Prisk. But where were you two or three years ago when IR35 was one of the contributing factors to the desolation of the IT job market in the UK? Now that IR591 has been announced, the Government is an easy target. They’ve admitted that they are wrong. So instead of rubbing their noses in it and taking cheap shots, you could work towards a fairer piece of legislation. Preferably one that is approved by the Plain English Campaign.
Brian – How was that for a rant? 🙂