Let me make it clear about pay day loans, along with other lending that is short-term

Let me make it clear about pay day loans, along with other lending that is short-term

With this web web web page

This site contains details about our basic way of complaints about payday advances along with other lending that is short-term. If you are in search of information especially with regards to Covid-19, please have a look at our specialized page which contains information for customers about complaints in terms of Covid-19 .

Exactly what are pay day loans?

Payday advances are a kind of borrowing referred to as “high-cost, short-term credit”. You borrow between ВЈ50 and ВЈ1000 and pay back the mortgage with interest, in one single re re payment on or right after your following payday. This sort of borrowing is often higher priced than several other kinds of credit.

There are more forms of short-term financing, including:

  • instalment loans – payments are spread regular or monthly over several repayments, typically between three and 12 months
  • ‘running credit’ or ‘flex credit’ – the way in which this works is comparable to a bank overdraft, borrowers and provided a ‘limit’ they need to, provided they pay at least the interest off each month that they can draw up to as an when. Although the credit contract hasn’t fixed end date, this kind of credit is expensive and designed for short-term only use.

Forms of complaints we come across

We have complaints from customers who tell us that loan providers:

  • lent them cash without checking they can’t pay that they could afford it, and now they have a lot of extra interest and charges
  • were unreasonable or unjust whenever their financial predicament changed
  • were not clear about whenever payments had been due

Everything we examine

As with any loan providers, short-term loan providers must make sure they are offering credit in a way that is responsible. They have to finish reasonable checks to make certain you are able to settle that loan before agreeing to it. Continue reading “Let me make it clear about pay day loans, along with other lending that is short-term”