5 Things Your UK Payday Loans Lender Will Not Tell You!
UK payday lenders are brilliant at telling you what they want you to hear. What makes far more interesting reading is what they DON’T want you to know!
The following article has been designed to highlight the 5 things that payday lenders would rather you didn’t know to help keep your money in your pocket.
1. Payday Loans can make a Bad Situation Worse
Although payday loans do have the ability to offer an effective short term fix, they can make financial problems significantly worse if payments are not made on time.
Inevitably for many people, this leads to a situation where believing that they have no other option, they take out another larger loan to repay the original, and another, and another until the payments and charges have reached a level which can have long term effects. If you find yourself in this position, check out the following money charity Step Change guide to the “5 Steps to Escape from Payday Loans”.
2. Payday Lenders will be able to Access your Account at will
The majority of lenders will gain access to your bank account through CPA (Continuous Payment Authorities) which can result in payments being taken without the required balance is available. This can lead to additional problems including charges from your bank.
Find out your rights when cancelling a continuous payment authority and what to do if your bank does not allow you to do this through the following FCA (Financial Conduct Authority) article – Continuous payment authorities: it is your right to cancel.
3. Payday Loans are NOT the Only Option
Despite the payday loan PR circus, they are not the only available option for bad credit borrowers and better alternatives DO exist.
A quick glance at a payday loan advert could easily convince a borrower with a poor credit rating that the only way that they can obtain a loan is to look to a payday loan. However, this is not the case.
There have never been more bad credit loans on the market, and by taking the time to shop around, you will quickly be able to access a variety of more affordable options such as guaranteed loans.
Take a moment to visit – ‘Payday loans – what you need to know‘, for an in-depth view of payday loans and how they work.
4. There Will be Repercussions for Missing Repayments
Although we all expect there to be repercussions for missing loan repayments, we would not expect our bank or building society to take some of the extreme measures that payday lenders have been reported for.
As reported in the BBC article “Payday loans: 10 things you should know before you take one”, if you do not repay your loan as scheduled, you may be pestered or intimidated by your lender.
To further enhance these claims, the Metro reported findings in their article titled – Payday loan borrowers urged to ‘fight back’ against unscrupulous lenders – highlighting the fact that:
“In 12 per cent of cases, lenders pestered people with phone calls and texts rather than accept offers of payments that borrowers could afford.”
5. Fast Loans, Slow Customer Service
There can be little doubt that arranging a payday loan can be a very fast process but experience tells us that customer service is often far slower.
This is backed up by a Citizens Advice Bureau article which claims that as many as:
“3 in 4 payday loans could have cause for complaint to the Ombudsman”.
What does your credit file look like?
Payday loans are targeted specifically at anyone with a poor credit rating. If you do not know the current level of your credit score and would like to find out which options may be available to you, visiting the Checkmyfile website to claim the UK’s only multi-agency credit report is the perfect way to check.
Did you know there are affordable alternatives to payday loans?
Fortunately for bad credit borrowers, there are far better options than payday loans currently available.
With our lenders, your credit score is not a problem, our fast simple to complete application will get you a wide choice of loans from the very best bad credit lenders in the UK (multiple lenders and loans for loans over £500 only).
Our Loan Calculator will let you work out how much you can afford to borrow and when you press ‘Quick Loan’ below there are no fees and absolutely no obligation to take out a loan.