Payday UK News Update: Stricter Guidelines on Lending Companies

Payday UK loans Regulations

Payday UK news update: In a recent study conducted, the data collected indicates that the role of payday lending companies is to prey on vulnerable people.

Companies such as Payday UK have popped up more than frequently over the past couple of years as the recession has hit the UK harder and harder and its public have struggled to make their money stretch. The idea is that these companies lend you the amount of money that you request and you pay it back when you get paid. They’re short term loans that mean there is no contract that ties you into more than, say, 30 days.

The main issue that many people have faced is that of the interest – there is a large amount of interest demanded on the amount that you borrow anyway but in addition to that if you find that you need to delay the date that you return the money, the interest is even higher. The survey that was conducted by Christians Against Poverty (CAP), while not specifically aimed at Payday UK, did discover that most payday loans companies are preying on those members of society who are more vulnerable.

Four in every five people who had taken out payday loans reported that they had taken the loan out in order to buy food for themselves and their families. This has come just before new regulations are being put in place in order to prevent people from finding themselves in situations wherein they cannot pay the loan back, and/or they pay back an extortionate amount of money in interest.

Payday UK News Update

These checks are expected to be focussed around the general credit check area – one fifth of those people who applied for a payday loan, were not even asked if they had a job. While on one hand this could be looked at as poor judgement on the part of the lending company – they have no idea whether the customer is able to pay the money back – it is not quite so philanthropic. Predominantly the companies, such as Payday UK, are aware of their demographic and play on the lack of guarantee with regards to returning the loan.

A lack of guarantee means the company can make more money on the loan because the longer it takes to get the money back, the more interest they earn. Instalment payments are offered of course, but this just increases the amount of interest the customer is charged.

If you are interested in learning more about payday loans, contact one of the leading companies: Payday UK. Contact their customer services department using the information listed on the following link http://www.customerservicescontact.co.uk/payday-uk-contact-number/.

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