Direct Payday Lenders (1)

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Direct Payday Lenders
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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. 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. 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 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. 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..
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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. 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.
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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. 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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For more information click to read more
www.bfwggrants.org.uk
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Thank You