One financial expert has said that the biggest problem to be had with payday lending is that there are simply not enough protection measures in place to prevent consumers from falling into massive debt as a result of taking out too many instant cash loans.
£38 million has been allocated for credit unions to be used for improvements to their IT systems and infrastructure by Lord Freud, the welfare reform minister, it was recently revealed.
New evidence has been uncovered that it’s not just low income earners that have to turn to payday loan providers as a result of the current economy, as a new study shows that affluent professionals, such as accountants, lawyers, and doctors, also turn to providers of short term loans as well.
One local authority has paved the way for the local credit union to expand in order to protect a larger number of people from falling into debt, it was recently revealed.
Thanks to new credit record integration technology, payday loan providers will now have no excuses when it comes to determining whether or not their customers will be able to afford to repay the sums they borrow, it was recently revealed.
It’s all too easy to develop tunnel vision when a financial crisis rears its ugly head, but financial experts say that you need to keep your alternatives in mind before going down the payday loan path of least resistance in order to avoid even more long-term financial woes.
One provider of short term loans has recently gotten itself into hot water after it ran an advert suggesting that borrowers could fund their Diamond Jubilee celebrations by taking out payday loans – a move that has seen the company branded as ‘irresponsible.’
One MSP has recently called upon the Scottish Government to issue warnings to people about how dangerous taking out short term loans from payday advance providers can be, especially in light of how many are brought low by rocketing debt levels as a result every year.
While there’s no news on whether this will see them raising or lowering the exorbitant rates on their short term loans, one payday advance lender has announced it could be moving into the savings market.
It’s time for short term loan providers to be regulated much more closely when it comes to their advertising campaigns, experts say, as as concerns about borrowers falling prey to misleading loan agreements.