What are Payday Loan Lenders

1
What are Payday Loan Lenders
2
For many years the type of borrowing resource
offered by payday loan lenders has been cleared
into question by various consumer groups and
consumers directly.
3
(No Transcript)
4
Many have questioned exactly how the market place
as a whole is able to realistically serve the
needs of consumers and therefore offer a product
worth having. A harsh assessment you will likely
agree but not all that surprising. For many years
the payday loan lenders enjoyed great success
when their product was introduced as a means for
borrowing a small sum of money online, in a
timely and convenient manner. These type of loans
were not readily available from any existing
lender and as such introduced consumers to a
whole new financial market place. For many years
the lenders and the consumers using the loans
were happy the product was able to do what it
intended allow a small loan to be borrowed until
the customers next employment pay date, at which
point the loan was repaid and the agreement
terminated.
5
(No Transcript)
6
In reality however and as the years passed it
became increasingly clear that the product on
offer was no longer able to realistically serve
the needs of the modern day consumer and instead
was placing those applying and being granted such
loans, in often increased financial difficulty.
The payday loan lenders needed to change and it
was the Financial Conduct Authority who set about
showing them how.
7
(No Transcript)
8
The Financial Conduct Authority stepped in as the
regulating authority responsible for the
practices of the payday loan lenders a few years
ago and since that time have been working with
providers to understand what was being done and
therefore what could be done to improve this
massive consumer market place. What the FCA found
(Financial Conduct Authority) was that often
payday loan lenders were not correctly
identifying which customers there products were
not suitable for and of those that were the
product being offered was simply too limited.
Through a whole host of consultations, the FCA
was able to truly understand how the market
operated and as such where improvements needed to
be made.
9
(No Transcript)
10
What was very obvious to the FCA was the fact
that payday loan lenders were continuing to offer
a product which had become dated. The way
consumers managed their money had changed
compared to the early days of the market and as
such the lump sum repayment offering was, in the
vast majority of cases, no longer suitable.
Instead the FCA guided payday loan lenders to be
more flexible and therefore consumer friendly in
their approach by advising instalment based
repayments would be more suitable and therefore
affordable. As such nowadays payday loan lenders
offer just that with support and quidence from
the FCA as to how such loans can be offered and
afforded in a manner which is fair and consumer
friendly. Changing of the product model lead to
furthermore additional changes concerning how
payday loan lenders review applications and
support their customers after the point of
approval.
11
(No Transcript)
12
For More Information
Pacific-Odyssey.CO.UK
13
Thank You