Bad Credit Payday Loans

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Bad Credit Payday Loans
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The financial economy has been known to be
uncertain and the introduction of payday loans
has made this the economy more uncertain which
was clearly not the intent of the people behind
their inception.  There were questions that were
raised on bad credit payday loans as they were
opening up to a considerable size of the
population with questionable credit history.
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This situation did not face large scale
regulation up until recently, when it came to the
attention of various regulatory bodies, the apex
being the Financial Conduct Authority. This was a
concern that needed to be addressed immediately
as the world of payday lending was beginning to
become one of the most widely criticized means of
loan generation.
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The reason for their inception was to bridge the
gap between the borrower and the institution and
create an alternative source of credit for mid
segment families with a stable source of income,
who could use some extra money to cover
unprecedented expenses. The simplest example
would include ones like car repair expenses or
expenses which have not been anticipated.
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 Over the years, these loans have targeted
families which are more vulnerable than the rest
and that can be blamed on their misleading
advertising. The middlemen or the brokers
employed by these lending agencies have also
targeted people who dont have the potential to
pay cash in the 2 week long period. This is
completely in violation of the rules and
regulations which define the nature of lending in
this industry.
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However, the situation is now changing. The
individuals with bad credit payday loans are
adding to the financial turbulence that has been
expanding over the last few years.  This sector
has faced a sudden surge of regulations which has
dismantled their place completely. The Financial
Conduct Authority is the highest regulatory body
that has carefully drafted the reasons for the
regulations which were creating a large number of
people entering the dreaded cycle of debt. Some
of the main reasons included the exorbitantly
high interest rates, the penalty fees, and the
repayment collection methods which have known to
be torturous for the eventual borrower.
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There are certain examples of borrowers with bad
credit payday loans bearing the brunt of their
intolerable ways. Let us discuss some of these
examples 1) There was an incident of a
borrower posting on various online websites
offering payday loans, looking to find the best
possible option for these types of loans. Her
personal account information was accessed by a
certain payday company and her account was
regularly debited till the time her account was
wiped clean.
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There were certain global processing systems that
called a certain individual at work and left
messages stating that she owed a company some
amount of money and that because of that, there
were litigation cases registered against her.
This was done in the name of a company that did
not exist.
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Another case involved an individual taking out a
loan of a certain amount, after which she was
repaid the amount on consolidating her debt in a
debt relief organization and closed her account
well in time. That person continues to receive
phone calls and threats of legal action against
her.
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The reason why these cases need to be highlighted
is because these are some of the most common
examples of the fraudulent practices adopted by
these payday lenders. However, it is important to
know when one can file a complaint against a
particular payday lender and it is equally
important to understand how and when a complaint
can be filed, so that this information cannot
work against us in the future.
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If the lender did not make it clear how much the
loan will cost you. He is supposed to take you
through all the charges and interests applicable
right from a 100 pound amount. If you
werent complete and accurate information on how
to pay back your loan. It is advisable to
document your conversations so that it is easier
to prove in a consumer court. If the
lender did not do a complete check into your
background, verifying your ability to pay as well
as taking into your consideration all the factors
responsible for you taking this loan. It is his
responsibility as a lender to gauge the
circumstances under which you are applying for a
loan. If the lender did not tell you
that these types of loans are not supposed to be
used on a long term purpose, especially if you
are in some sort of financial difficulty.
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If the lender did not communicate how Continuous
Payment Authority works. CPA is where you give
them the written permission to deduct amounts
from your credit/debit card. This needs to be
mutually agreed upon. If the lender did
not tell you that they are going to be deducting
the amount in regular intervals or in one go,
depending upon what type of loan you have opted
for. This is usually done through CPA.
If the lender did not talk about the implications
of late repayment through their online
advertising or done personally through an email
or a text message. This is a mandatory
requirement and needs to be followed to the tee.
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It is also essential to understand this from a
lenders point of view. All the complaints that
you can file are guidelines meant for these
agencies to work in a professional manner. If
this is not done, then it leads to trouble for
the lending company as well as the borrower.
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There needs to be a certain amount of education
that needs to come with these types of loans and
it is important a borrower knows his rights
fully, before stepping into something as
dangerous as this. These loans need to be
regulated and the regulation needs to be
mandated, so that there is no unfavourable
practice that leads the borrower in trouble. This
is the situation that has been affecting the
consumer in many ways and as a result of that,
the need for regulations was felt. 
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www.trueblueloans.co.uk
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Thank You