To ensure that creditors follow ethical business policies while loaning out money to the borrowers, the governments maintain a strict vigil on them. This is done by designing and enforcing a few laws and regulations that will control the debt market and at the same time improve the money lending and debt collection practices. Over the years several such laws have been formulated and implemented and a number of significant amendments have been made in the laws that already exist. This has protected both the lenders as well as the consumers but just as every other law there are also a few downsides that have had significant effect on the…
