Trustworthy Payday Lender

How to know if your payday lender is trustworthy?

To know if a lender is trustworthy, start by reading consumer reviews. In fact, the UK government encourages such actions before plunging into borrowing. Compare side by side the lenders you have shortlisted and are the popular ones in UK. Look at their APRs, loanable amount (on average, lenders offer in the range of 200 to 500 with some can go as high as 1,500, but good for loyal and paying customers), the timetable for repayment and the customer support. More importantly, make sure that these lenders are authorised by the Financial Conduct Authority.

Regulated Payday Lending in the UK

How to know if your payday lender is legal.

The FCA is a financial regulatory agency in UK. It is operating independently of the government. This agency has the mandate to regulate lenders and other financial firms that provide loan products and services to the public and in the maintenance of the integrity of the financial industry in UK. The FCA was established in 2014 and has significant powers to regulate the lending industry, including the short term loans, over its predecessor, the Financial Service Authority. It can shut down a payday loan lender if he/she does not work within the system or by following the law as well as for larger firms.

Reputable Lenders

Lenders can operate only if they get approval and authority from the FCA. If you encounter a lender that is not recognised of authorised by the FCA, it is better to not deal with them and report them to FCA.

The same goes if you think the lender, even if it is authorised by the FCA, misconducts, report it to FCA.

Reliable Lenders

A true and reliable payday loan provider offers his/her loan products and services to people needing quick cash.

They do not take advantage to the borrowers by asking for exorbitant fees and charges and of course, they do not have hidden charges. All of their fees are upfront and carefully explained to the borrowers.

Financial Advice

In addition, they do not just let the borrowers get loans from them - they also provide simple financial advising.

In fact, these kinds of lenders will tell borrowers to use only the borrowed cash for emergency purposes and not in paying off other debts.