Payday Loans Direct Lender and Brokers
I am writing this article on the 7th December 2015, just as the world is really waking up to Christmas and the fact that it is only a couple of weeks away. This is a time when the shop displays, and it seems every TV advert, is about Christmas and telling us how wonderful it is. It is not wonderful though for a lot of people. Ignoring religion, terrorists, of the effects of Storm Desmond which is destroyed quite a chunk of northern England and Scotland.
Don’t get me wrong, I love Christmas and I love spending time with my family at Christmas. I do feel that Christmas is wonderful, but a lot of people who apply to our site do not find Christmas wonderful. At this time of year we see an increase in the number of people, who should not be borrowing more, applying for loans with us at BFWG Grants. We see more people who have a number of loans with other lenders showing on their credit reports and we know that they are over borrowing. Of course, we don’t lend to these people, but looking at their credit reports we can see that other lenders do lend.
What really dismays us it that we still get people ringing up concerned that we are not a direct lender and they are going to be charged to apply for a loan. We are a payday loans direct lender and we do not charge people to apply for a loan. But there are still brokers out there who actually charge people up to £70 to apply for a loan. I don’t think these brokers ever actually lend their own money or lend at all. I think most of them are just putting up a broker site, charging people to apply, and sending their details to another broker or some unwitting lender.
I am not really sure what value these payday loan brokers bring. They claim that they put the applicant in touch with the right lender for them, but with the rules on lending as a payday loans direct lender being so clear and tight on what can and what can’t be done, I am sure if they were wiped out, no one would miss them. If I do a search for Payday loans direct lenders now I see loads of brokers mixed in with the lenders. Now, if Google were able and willing, there should be no brokers in that search, as I only wanted to see the direct lenders, not the brokers. But this is not Google’s fault, as they can only go on the information they are presented with. Smart brokers know how to use SEO to their advantage. They will make their sites look like direct lenders so that Google cannot tell them apart.
Being a broker can be extremely lucrative. There are limited overheads; in fact some brokers run their businesses from their homes or cafes. They only need SEO skills, a laptop and a bit of cash to get started. Whereas, for a lender things are very different. They have large overheads and this makes it difficult for them to compete with the brokers when it comes to SEO activity. Then what happens is that the brokers outrank the lenders on the search engines, which is not ideal.
Anyway, I digress. We were talking about people applying for loans that they really cannot afford at Christmas. I do worry about these people as these loans can be toxic and can get out of control really quickly. We see people who earn £1,000 a month and have loan repayments of £900 per month. It does not take a math’s expert to work out that these people could be in trouble and with no obvious exit from their problems. You can see that it would only take the slightest hiccup in their finances to find themselves unable to make repayments. While the law is so much better now, in that lenders cannot just keep adding interest, even when they know the customer is in debt, it is still very easy for a borrower to trip and find the debt to big to solve.
We, as direct lender, do not see Christmas as a time for us to lend more and get more people to take out loans. We see it as a time to lend cautiously and check and double check that the people applying really can afford the repayments. Short Term Payday Loans really should only be for emergencies and not for paying for Christmas or buying presents. They are meant to be for things like a broken washing machine, a new tyre for the car, and this type of purchase. We wish that other lenders would not be so greedy and we wish that they would slow the lending down and stop lending to people who, in our opinion, cannot afford the loan or its repayments.
Now, what I would really like for Christmas is the removal of the brokers so that only companies that can actually lend to customers’ by being direct payday lenders are listed on Google. That is not going to happen, but hey, you can but wish.
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%
Warning: Late repayment can cause you serious money problems - For help, go to moneyadviceservice.org.uk
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Author: Internal Marketing Department