Apply Only With Direct Lenders for Payday Loans in London
Warning: Late repayment can cause you serious money problems
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Representative Example: Representative 1286.98% APR on a loan of £300.00 with 5 monthly repayments of £101.03 Total amount repayable £505.13 Annual interest rate (fixed) 290%
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Author: Internal Marketing Department
Payday loans have been facing a lot of criticism from the time they entered the finance market. Right from their high interest rate tags to their easy availability to borrowers having bad credit scores, payday loans have been in the limelight for all the negative reasons. Despite this, the figures for payday loans are rising higher day by day as more and more borrowers are preferring this mode of credit above all the other loans.
One of the major issues discussed by finance critics and well-experienced borrowers is the fact about going to direct lenders for payday loans in London and totally avoiding any other sources of loans, like brokers, loan matching companies, lead generating companies, etc. Several reasons have been given as to why the borrowers avoid middlemen and how they sometimes charge fees which could easily be saved.
Why should a borrower avoid brokers for payday loans?
It is always the new or unaware borrower who falls into the trap of brokers. Brokers, with their large advertisements and defying advertising techniques, promise the sky to the borrower. But the truth is that getting a broker involved may cost extra money and time and it may not worth any of it.
Some brokers charge you a fixed fee and promise to get the best payday loans for you in a short time. But it seldom is the truth.
What malpractices do the brokers use?
Some brokers choose a package for you which is the most profitable for them in commission and try to sell it to you by saying that they have conducted a special market research with your requirements and this loan package is suited specifically for your needs. They sometimes use malpractices like not revealing some terms of the loan agreement, and not making the communication clear between the direct lenders for payday loans in London and the borrowers. This can land you in financial trouble.
Brokers have recently been in news for misguiding the borrowers and misusing their information. Whether you get a loan from a broker or not, many brokers sell your financial and personal details including your bank account credentials to other lenders or loan matching services. This results in a lot of spam calls and even money being deducted from your bank account for no reason. Many borrowers have complained that their bank accounts were being emptied and they were receiving calls from the so called ‘lenders’ who were demanding them to pay back the loan which they had not taken.
What steps has the FCA taken against the brokers?
A lot of complaints were being registered by the borrowers against the brokers, and the number of complaints really crossed a huge number in 2015. This caught the attention of the FCA, who then brought new regulations in the payday loan industry. The regulations were meant for the brokers to follow included openly stating they were a broker, and also getting consent when a fee would be charged,
Brokers and direct lenders for payday loans in London too will now have to follow strict guidelines regarding advertisements. They cannot use advertisements which promote the casual use of payday loans for vacations, luxuries, etc., as loans are to be used only in emergencies, and if used incorrectly they can lead the borrowers into a lot of debt. Also, the advertisements will need to carry disclaimers stating that borrowing loans involves risks and must be used very carefully.
Also, lenders will need to clearly state all the terms and conditions to the borrowers before before going ahead with the deal. They will have to reveal their total fees and any extra charges that may be applied also.
Why direct lenders for payday loans in London are the best option?
The payday lenders are strictly regulated The communication between lender and borrower is very clear and the credentials of the borrower remains safe. Payday loans get disbursed very quickly after the loan is approved and often do not involve any extra fees other than the interest. The lender also helps the borrower to pay back the loan during urgent crisis. So if you are in a financial crisis, borrow only from direct lenders for payday loans in London.