3 Lies Fast Payday Loan Companies Like To Tell You!
Payday Loan companies love to tell stories about customers who they helped out of a financial fix, but can you really trust what they say?
Read on to see the 3 lies that payday loan companies love to tell!
Lie No. 1 – Payday Loans are safe to use
When taking out a loan, we would all like to be safe in the knowledge that we have borrowed the money from an understanding lender.
Whilst we are well aware that the loan must be repaid, we should not have to worry about the lender crossing ethical lines in order to make sure that they recoup their money.
The following story in the Mirror – Payday loan leeches: Suicide dad hounded for cash as he lies in hospital highlights a terrible story of how staff at The Cheque Centre pestered one of their customers for repayments on a loan of less than £200 whilst he was in hospital after he had taken an overdose – then proceeded to take money from his bank in full knowledge of the situation.
For the full story, please click here.
Lie No. 2 – Payday Loans can improve your financial situation
Whilst it may be a fairly equal split between people who turn to a loan to improve their finances or to make a purchase, nobody ever turns to a loan to make their financial situation worse.
Portrayed as the ultimate financial quick fix, payday loans have the ability to make a bad situation worse incredibly quickly and should always be viewed as a very high-risk proposition.
The following article highlights just how quickly a payday loan can spiral out of control as Ami tells her story of how an initial loan of £100 became of debt of over £2000.
Lie No. 3 – Payday Loans are a form of responsible lending
Whilst responsible lending legislation has been designed to help lenders, it has also been put in place to ensure that borrowers should not be able to take out a loan they cannot afford.
One of the big selling points of many payday loans is the fact that the lender is prepared to skip the credit check during the application process.
Whilst this will result in a far greater number of people having their application granted, the lender has no way of knowing whether their customer can afford to pay or not and therefore the borrower can be plunged into financial trouble when they cannot meet the scheduled repayments.
For more on the impact of the FCA rules on the payday loan industry, click here.
Alternative affordable loan options
Payday loans are also not the only loans available to borrowers with a bad credit rating. If you would like to gain access to some of the most affordable bad credit loans currently available, simply use our Loan Calculator to assess how much you can afford to borrow and then use our loan application option to submit your details to a number of the UK’s most top bad credit lenders.