U.K. payday loan lenders need some regulating. There are lots of lenders who are feeding off the financially vulnerable, but that can be found in the U.S. as well. As regulations continue to improve for customers, there will be some lenders trying to find loop holes to avoid them.
In the U.S. there was a businessman who had charges brought against him as he tried to hide his payday loan company within a Native American tribe. Any direct payday loan lender based within tribal lands does not have to follow state regulations for payday loans. The lender was found out after many complaints were filed and the investigation found that the business was fronted behind the Native American Sovereign nation status.
Find the right payday loan lender for your situation.
Americans can find access to predatory lenders online without even realizing who they are. For those new customers who are not clear with their rights as borrowers will look right past the obvious warning signals and seek out the fast cash. Many of these borrowers are not thinking past the financial emergency to process how this loan would affect their next paycheck. When it comes to making the full payment, they then realize that there is no cash for it. The high interest will accrue on the loan balance and debt problems will continue if not worsen.
There have been reports of U.K. payday loan lenders charging an APR of over 4000%. It sure seems like quite the exaggeration to make the point that payday loan interest is high; but then again, the article was promoting a different financial group. Those direct payday loan lenders attach a high interest rate to the short-term loans, but they are not over 4000% APR high. Let’s say that they are that high, who would be paying over 80% interest each week in order to take out a loan? Would a customer take out a loan knowing that the balance would carry this interest? Such exuberant numbers are something in a article, but if you were to ever find them connected to an actual lender, be aware that the payday loan lender is not the best choice for any type of loan.
Some people who are turned down from lenders, find themselves willing to take any kind of loan. This is where responsible lending and borrowing practices go out the window. Payday loans are no credit bureau check loans. The lenders do business with those who have poor or no credit. The payoff is fast with a high interest attached if not. Certain qualifications need to be met in order to be approved. It makes easy money attainable for many who have no credit left elsewhere, but it does not mean it is the right decisions for your finances no matter what country you live in. The people of the U.S., U.K. and even Canada have fallen into bad economic times and they are looking for ways to get out of their financial messes.
One of the most important facts about payday loan lenders is that the service offers small short-term loans for a financial crunch not debt relief.
