Do Payday Loans Really Deserve The Bad Press Which They Receive?

In recent month’s, there’s no denying the fact that payday loans have received a wealth of bad press, especially over in the UK. Many of the more established lenders such as Wonga have been heavily criticised by those in influential positions and urged to re-think their lending policy. This got us thinking on whether or not payday loans really deserve the bad press which they receive and, above all, whose responsibility it is to act ethically when it comes to lending and borrowing. In order to get a second opinion, we teamed up with the guys behind Cash Call and Relax Cash.

In short, as far as we’re concerned, payday loan lenders have done nothing wrong and have always acted ethically. There has rarely been instances where actual interest rates aren’t displayed clearly and it’s always made clear that, if a loan isn’t repaid on time, the cost of borrowing will rise rapidly. It’s simply the way payday loans are and something which every borrower is made fully aware of. Payday loans have always been a high-cost method of borrowing, ONCE the standard repayment period has been exceeded. So long as the full ammount borrowed is repaid within the agreed timeframe, usually of one month, the cost is seen as affordable.

The majority of borrowers have never experienced any issues with payday loans and find them to be a lifeline when money is short in the run up to payday. So long as the money is repaid on time, there’s absolutely no issues and excessive fee’s are never implemented. The problems come, however, when borrowers are irresponsible and apply knowing fine well that they won’t be able to afford full repayment at the end of the month. A payday loan lender can never be 100% sure as to how likely a borrower is to repay, even when running a credit check and, as such, they have every right to impose the charges which they’ve always clearly outlined.

 

With this in mind, surely payday loan lenders don’t deserve the bad press which they get? They make it very clear as to the charges once repayment overruns the agreed period and, as such, the responsibility lies with the borrower to make the correct, educated decisions based on the information which is always provided by lenders upon application.

 

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