Payday Loans Direct Lenders

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Author: Internal 

 

At one time people did not search for direct lenders when they undertook a web search. The reason is that they did not need to as there were no brokers only lenders. Then a new industry popped up which sat between the comsumer and the lenders. This new industry were brokers. They tended to be better at the marketing and were able to create websites that listed higher on a search engine than the lenders and they collected the leads and sold them to the lenders.

If we focus on our industry, even though we offer installment loans, we are grouped with payday loans, so we will talk about payday loan lenders. If you were to search for payday loans in Google, you would get a big list of companies all claiming to offer very similar products and services. If you were to study the websites closely you would see that some were payday loan lenders and some were payday loan brokers. The sites look very similar and unless you really looked closey at the small print, it would nearly impossible to tell the difference between the brokers and the lenders. 

This is not really fair on the consumer as they should have the right to clearly see the difference between Payday Loans direct Lenders and brokers, but the search engines cannot see the difference and have to treat all sites the same. While there are new laws in force under the new regulator (FCA), they will not make a lot of difference to the way direct payday lenders and brokers sites appear on search engines. What you will notice however is when you arrive on the companies website it shoudl clearly state it the company is a broker. If not they are a lender...or just not complying with the rules.

 

Payday loans direct lenders

 

Before anyone takes out a loan they need to consider a few options, they have to know that they definitely need the loan and how much do they want to borrow. They also need to know what kind of financial product they need such as a short term loan, an instalment loan over a typically longer period or perhaps a payday loan over a very short period of time. Before a loan is applied for and then maybe obtained that customer also needs to decide what lender they use as there are so many different ones and they all offer varying products. People can also use financial brokers that normally charge for the use of their services so in this article I am going to write about payday loans in particular and the direct lenders and the benefits they can offer. 

A payday loan is a small loan given by a lender to the consumer and then repaid over a short period on that persons next available payday and normally cleared in full within a thirty one day period. Once this kind of loan is taken out that customer has the responsibility to repay in full and if they are not in the position to do so their other repayment options are then limited. This could lead down the line for repayments to be missed and people also then defaulting on their loan agreements. Missing any loan repayment can nearly always result in severe negative consequences for that person involved. A good example to see how someone could potentially miss a payment would be to follow this example, a customer borrows £300.00 and that comes with interest of around £72.00 (based on the capped rate of interest interest calculated at £24 per £100 borrowed ber 30 days) meaning on that persons payday they will be expected to pay £372 as a single transaction and this is obviously not always possible. People who use Payday loans direct lenders do not normally have a high amount of disposable and for them to pay £372 on top of other bills and maybe other debts will simply not always be possible.

Quite a few people when a loan of this nature is needed they want the money quickly and I strongly believe using a payday loan direct lender can make this happen as explained further below. 

When a customer uses a direct lender they have applied with the actual lender and a decision from the lender will then be made and the application will then be approved or declined.  If approved the money should then be paid into the bank information provided by the customer in the application process. If the decision however is declined then the lender does not have to explain in detail why and can just maybe say that customer does not meet the lender criteria or they are simply not willing to lend at this time, unless it is based on Credit Referance Agency data when this must be advised. The customer here can then just move on to a different company. If a few apps are declined for that customer then this can affect the credit rating in a negative way. There can be examples when a direct lender can request further documentation from the customer in order to proceed with the finance further, some of the documents requested could be a bank statement or utility bill to prove the address or maybe a driving license or passport to prove that customers identity for data protection purposes. This can delay any loan from being funded but once any documentation has been received and verified from that lender then that should be the final stages of the application and then the final decision will be made.

 

 

 

 By Kieran Moulden