All
financial organisations that offer money lending services must adhere to a strict set of rules and regulations. These regulations are enforced by a government appointment financial governing body. The governing body is known as the OFT, and it works to ensure all lenders follow the statutory, and voluntary lending practices.
All lenders are required by law to operate in a fair and just manner, in order to protect the consumer. This involves fair lending practices, which includes clear information on interest rates and fees, full disclosure of the terms and conditions of a loan, and protection of a borrower's personal information. There are also a variety of regulations about advertising, and marketing financial services, fair and honest advertising, and practices for communicating with customers.
Unfortunately, not all lenders adhere to these regulations. The voluntary regulations are an area that is particularly abused by less than scrupulous lenders.
When you are considering a short term payday loan, you should be aware of some of the tactics that bad lenders employ and be aware of how to distinguish a good lender from the less than trust worthy companies.
Firstly, once you identify two or three possible lenders, you should look at their websites and make sure all the information about their loans is there; interest rates, fees and terms should all be clearly accessible, and written in clear understandable English. Next you should look for confirmation that they have the correct licenses to operate as a lender.
Once you have established these basic requirements, you can spend a little time looking for customer reviews and information about each company. If it is an unpopular company, or if borrowers have had problems with them in the past, you will soon come across articles online telling you about it.
What you are looking, for is a payday lender who has a solid and trusted reputation with its customers. Look for genuine reviews and feedback, and examples of where customers have successfully borrowed.
It won't take you long to identify a good, trusted lender. You can then do some more detailed checks about the company by contacting their customer services and asking them about their loans, and the payday loan service they provide.
Spending a little time doing the research and investigating carefully can help you find the right lender for you, and can help ensure you do not get involved with a bad lender. Do not fall for clever sales tactics. Some bad lenders will do everything they can to encourage you to take out a loan. This is highly unprofessional and if you feel a lender is harassing you to borrow money, you are within your rights to complain to the OFT.
One borrower recently reported that an internet lender sent them text messages every day, attempting to encourage them to borrow money and take out a short term loan. This is unprofessional and not how the best lenders operate.
Take your time and think carefully before committing to any type of credit or loan. Choose a company with a good, proven, and solid reputation, and one which will do their best to help you by giving you the information you require.
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