Fast Loans – Payday Decrees new Cross Check Directives

It seems that some of the big Payday boys have been naughty. According to this man: Phillip Brown, who explains that he was able to take out a fast loan cash advance a bit too easily for his liking. Philip wanted to go off on a fishing weekend with the guys but he just did not have the funds. He trotted off to his bank to ask them if they could see their way to pushing his limit up by an extra 100 pounds, but to no avail. After considering his options he stopped into one of the payday companies on the high street and applied for a 120 pound cash advance. As he stood there filling out the form he checked the box that classified him as having a full-time job even though he had no work at all. He submitted his application and walked out with 120 pounds in his fist, off to fish with his mates.

It is hardly a huge surprise that a few weeks later the payday company initiated contact again. Surely Phillip did not think they gave him a fast loan present of 120 pounds? They sent him some letters and called him a few times and he still didn’t pay back his debt, and because, it seems, Phillip has no idea what a Payday Loan is, he couldn’t understand how the debt of 120 pounds could have risen to 800 pounds over a couple of months. Well Phillip, that happens when you take out a loan with a high APR.

As one of the biggest International Payday Lending Companies is beginning to understand, not only do the lenders not understand their clients, the clients do not understand the lenders. October will see this company write off the debt for some 300 thousand people who were granted loans when they should not have passed the credit check criteria. Other steps to rectify problems within the company and its clients will include freezing the interest on some 50 thousand loans giving the clients an opportunity to pay off their debt.

Payday Lenders have hovered on the fringes of the upstanding financial business sector for decades. Not quite a loan shark, not quite a pawn shop, not quite a building society. Were they good guys? Were they bad guys? What they definitely were, were guys who lent you money quickly without asking too many questions and all was good if you paid it back on time.

Payday Lenders have become more mainstream. They have advertisements on Facebook! In effect it is time for them to pull their socks up and polish their shoes. Put a tie on for good measure and put some ground rules in place. Most of all ground rules that are transparent and protocols that will stop people from sinking into the mire of debt and desolation. A good lender is one who helps those who borrows from him – that’s why he lends in the first place, is it not?