Payday Loan Reform Suggestions Unrealistic
The UK’s leading Payday Loans broker www.paydaybank.co.uk responds to consumer watchdog Consumer Focus’ ‘Keeping the Plates Spinning' report, which revealed payday loans have more than quadrupled over the last 4 years. Commenting, Ohad Hessel, from Payday Bank says; “The popularity of payday loans has grown considerably over the last 4 years and the figures shown by the report are generally in-keeping with our own figures. More and more Brits are discovering that compared to many other options, taking out a payday loan is a fast and convenient way to gain affordable credit.” The Consumer Focus report made a number of suggestions to improving the payday lending market for consumers, among them limiting the number of payday loan applications taken out per household to 5; forcing lenders to take out more stringent credit checks and promoting the services of credit unions and social lenders for affordable finance. Commenting, Ohad Hessel continues; “The Consumer Focus recommendations suggestions could help customers and may be a step in the right direction, but the reality is that they will be extremely hard to implement as most lenders will be reluctant to share information with their competitors. Put simply, if a lender judges that the customer can repay a loan then they will probably happily lend them money, whether it is their first application of the year or their sixth. “While promoting credit unions is a good idea in theory, we don’t think credit unions are capable of dealing with the risk involved in lending to customers with a high risk of defaulting on payments. They are also unlikely to be able to assess well enough a customer’s ability to repay the loan, or, even collect debts when customers do default on their payments.” The Consumer Focus research highlighted that many consumers in the study choose payday loans over mainstream borrowing from banks because they fear being hit by unexpected overdraft and credit card charges or that these credit options will tempt them into long-term debt. Also, independent research in April 2009 found that 96% of payday loan customers were satisfied with the service offered by payday loan providers.* Online Payday loans can be used for any reason. Applicants must be UK residents and over 18 years old & employed. As the UK’s leading broker, Payday Bank can offer loans from several different lenders, offering a short term cash solutions to more customers than any individual lender. Notes: For more information contact Dale Lovell at Search News Media on 0779 1414 681 / 01753 859 588 or email: dlovell@searchnewsmedia.co.uk About Paydaybank.co.uk: PaydayBank was established in 2005 with the aim to help as many customers as possible with their short term cash needs. Applicants must be UK residents and over 18 years old and in employment. *Independent research from Auriemma Consulting Group in April 2009 found a 96% satisfaction rate among 1,000 payday loans customers. Consumer Focus Press Release on payday loans: http://www.consumerfocus.org.uk/news/number-of-payday-loan-users-has-quadrupled-consumer-focus-research-reveals
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