How the future could be brighter for consumers with payday loans

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How the future could be brighter for consumers with payday loans

20th July 2010

Payday loans have been excellent for those who need a quick fix following on from a shortfall in their credit. However, some experts believe that even more could be done to help the target market who take advantage of payday loans every so often to improve their cashflow.

Mainly, the people who take out payday loans are those who might not have the best of credit histories. Despite this, many companies lend hundreds of pounds over a short period of time, with a high interest rate being applied for when the loan matures and when repayment is due.

This is where the Office of Fair Trading has said that services which are at a high cost to the consumer, such as payday loans and pawnbroking, need to be regulated more fairly in order to ensure that there are higher levels of competition on the market – meaning that consumers could potentially get a better deal.

However, whether the OFT could do this is a different matter. In a statement, they said that they did not have enough power to shape the payday loans market to make it more efficient for both businesses and consumers, saying that it would be up to the Government to take a proactive role in making this happen.

This has been getting more and more press in the British media. With this industry being worth billions of pounds each year, there are questions as to whether more should be done in order to regulate this industry and ensure that the practices are fair. This is being done in plenty of other countries at the moment.

However, there is no disputing how advantageous payday loans can be – with many of the online services now eliminating the arduous process of faxing from the application process for consumers. Also, many of the companies have been saying how they endeavour to ensure that any lending which takes place is fair and that the clients who are using the service have a credit history and an income coming into a UK bank account which reinforces that they will be able to pay for anything that they borrow when it is due.

There are also ways that payday loans can try to accommodate for you if you are having difficulty in making the repayments to the deadline which was originally agreed. If you compile a letter which includes a repayment schedule, you should be able to find that there is no issue with getting the outcome you require. If the loan company knows that you have acknowledged the situation and that you are making amends to ensure that the matter is resolved, it could be said that they will be understanding and that they will allow you to abide by the new schedule which you have outlined. However, you should remember that it is vital you contend with the schedule you have set yourself, otherwise you might be deemed as untrustworthy and they will take action.

Posted in Payday loans

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