Friday, 11 October 2013

UK: The Credit Unions (Maximum Interest Rate on Loans) Order 2013

Section 11(5) of the Credit Unions Act 1979 imposes a maximum rate of monthly interest that a credit union may charge on an outstanding loan: one per cent or such other rate as may be specified. From 1 April 2014, the maximum rate becomes three per cent. This change will be brought about by the Credit Unions (Maximum Interest Rate on Loans) Order 2013, which was laid before Parliament earlier this week. An accompanying explanatory memorandum is available here (pdf).

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