All Payday lenders are
bound by strict regulations and codes of conduct. Unfortunately, not all online
Payday lenders abide by these rules and guidelines. Every day, we come across
stories of borrowers who have been mistreated or misled by unscrupulous online
short term lenders. Although Payday loans as a form a credit are still
increasing in popularity, the number of these financial horror stories posted
on the internet, do not seem to be disappearing. Bad lenders cast a bad light
over the whole payday loan industry, which is unhelpful for the people out
there who genuinely want to use this form of credit. It's also unhealthy for
the industry as a whole.
In this article we
look at some of the things you should consider before you apply for a payday
loan in the hope that you can avoid the bad lenders and end up with a much more
positive experience.
The biggest issue is
that the less than honest lenders are not so easy to detect. Many of them have
seemingly good reputations and flashy websites promising the best and quickest
loans. When you are looking for a good short term lender, first of all, choose
a reputable company, that's a good start. Secondly, make sure they clearly show
their lending licence and registration details on the website.
Reviews and feedback
from other customers are also an excellent way to establish whether a lender is
good. The best lenders offer free customer advice so you can ask questions and
make enquiries without having to apply for a loan. You should be able to access
all the information you need without any obligation to borrow money, until you
are ready to do so.
According to our
research, internet searches are how the majority of people find a payday
lender. This is a good way to start, but once you have found a few lenders, it
is best to spend a little time doing some research into them.
Some lenders will go
to amazing lengths to convince you to borrow from them. While we understand you
may be feeling stressed and under pressure to borrow money as quickly as you
can, don't let a bad lender harass you into making a rash or hurried decision.
Even if it is just for a few hours, take some time to consider all your options
before you apply for a short term payday loan.
Another way to
establish whether your chosen lender is trustworthy is the application process.
The reputable lenders all have a formal and thorough application process, which
will include establishing proof of your identity, verification that your bank
account is active, and confirmation of your employment and regular income. You
should always be asked for this information, it is standard practice amongst
good lenders, so if you are not asked these simple questions, be cautious.
Bad lenders will try
to sell their loans to whoever enquires about them. Financial services and
credit are not something that should be sold. Reputable lenders, who practice
responsible lending, will never try to sell you a loan. Instead, they will give
you the information about their services, make the costs and interest rates
clear from the outset, and leave the ultimate decision to borrow entirely up to
your own discretion. If you experience any form of high pressure sales tactics
or harassment from a prospective payday lender, you have a right to report them
to the OFT.
While a financial
emergency can crop up at any time and cause a great deal of stress, try not to
panic and instead, spend some time considering all your borrowing options.
Calculate what you can afford to repay, then you will be able to calculate more
accurately what you can afford to borrow.
The main thing to
remember is that you are in control, these are your finances and the decision
has to be one which is best for you, and your family. The best lenders will
give you the help, advice and support you need and when you find the lender you
need in an emergency, you will be able to access the short term cash advance
you need.
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