More than three quarters of payday loan complaints are justified

payday-loansAccording to new research by the Citizens Advice, at least 76 per cent of people who have lodged cases with them in relation to payday loan companies in the first six months of this year, have grounds for an official complaint to the Financial Ombudsman.

There were a number of different reasons cited for customers’ complaints to Citizen Advice, including potential fraud cases. A whopping 20 per cent of the complainants were reportedly being chased for payments on money they had not actually borrowed.

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If you’re going to take out a payday loan, do it right!

Payday loan approved stampIt’s probably fair to say that very few people would relish the thought of taking out a payday loan to make ends meet for that last, pesky week of the month.

Infamous for the sky high interest rates, payday loans can easily lead to a downward spiral of increasing debt, so approach with caution!

If you need some fast cash, the first things to do is consider all the potential alternatives – and if you do go ahead with a payday loan, make sure you will be able to pay it back on time, as per the original agreement.

Money Saving Expert has pulled together a great little guide, listing all the things to think about before taking out a payday loan – check it out here.

Student union calls for a ban on ‘payday loan’ adverts on campus!

Payday loansIf you are a regular visitor to our blog, you will probably have noticed that we have written about ‘payday loans’ in the past.

Payday loans are usually short-term loans for relatively small amounts – the idea is that the loan will tide you over until payday, at which point you pay it back.

However, concerns have been raised in the last year over the sky-high interest rates that many payday loan firms apply, and their often ‘irresponsible lending practices’. At the end of last year, the UK Government announced that it would crack down on payday loan firms, imposing a limit on internet rates that can be charged.

Now, The University of Northampton, Northumbria University, and Swansea University have all banned payday loan adverts on their campuses, and the NUS (National Union of Students) has called for other institutions to join in the campaign.

The industry, however, has said it will do nothing to stop rouge traders, with The Consumer Finance Association (CFA), which represents many of the major payday firms, pointing out that only some students, in regular employment, would be eligible for a payday loan from a reputable provider.

What do you think about payday loans?

Read the full story on the BBC News website.