Korkokatto
Korkokatto, literally “interest ceiling” in Finnish, is a policy instrument that sets a legal maximum on the cost of consumer credit. It aims to limit the total annual percentage rate (APR) and the fees that lenders may charge a private borrower. The term is used in Finnish public discourse to describe efforts to curb high-cost lending practices, especially in relation to payday loans and other high-cost consumer credit.
In Finland, korkokatto typically refers to proposals or regulations that would cap APR and charges on loans
Policy status: As of the early 2020s, Finland had debated introducing a general korkokatto, but no broad
Impact and criticism: Supporters argue that a korkokatto protects consumers from predatory lending, reduces debt distress,