UK Payday Loan Lenders - The Myths And The Facts
Warning: Late repayment can cause you serious money problems
For help, go to moneyadviceservice.org.uk
This article contains information about products/services offered by us as well as those that we do not offer.
Payday loans are convenient and safe when used correctly, but there are several myths surrounding payday loans UK lenders, which may keep people from using them. It is, therefore, important to bust these myths and understand the reality. Here are four myths about payday loans and the real facts.
The first myth is that it is very easy to get a payday loan; anyone can get it even if they have no chance of repaying the loan. This is not true, at least for payday loans UK. It is true that payday loan applications are processed quickly, but the approval process is not a walkover. Lenders take the borrower's affordability very seriously even if the same person has successfully obtained a loan from them in the past. The second myth is that these loans are very expensive due to their high APRs. However, this is not always the case, and you can look around for the best rates. The third myth is that all lenders are alike because the FCA regulates them. The FCA only specifies the maximum rate that payday lenders can charge. Some lenders charge lower rates. The fourth common myth is that lenders can use debit card details to withdraw money from a borrower's account whenever they want without informing the borrower. The FCA regulation requires lenders to tell the borrower the exact repayment schedule of the loan. Even if the lender uses a continuous payment authority (CPA), there is a limit on the number of withdrawal attempts that can be made. Borrowers can also cancel CPAs by calling their banks or the lender.
Although there are several myths about UK payday loan lenders, most of them are unfounded. If there is any risk with payday loans, it is not from lenders' side, but from borrowers trying to misuse these loans to meet long-term requirements or taking them when they cannot afford them, sometimes by providing incorrect information on the application. When used judiciously, payday loans are safe, affordable and convenient. Head to https://trueblueloans.co.uk to find out more from True Blue Loans today, one of the UK based lenders.