Who are you really borrowing from?

Friday, 23/10/2015

Savvy savers and borrowers will already know that there are occasions where timely payday loans can be an alternative source of borrowing and a better option if an unexpected expense occurs. 

Your search at this point may be dependent on interest rates, particularly if you are intending to borrow for more than a month or so. The Financial Conduct Authority (FCA), have put a limit on what lenders can charge in terms of APR, and genuine, regulated companies are abiding by these rules. There are unregulated companies out there operating illegally and it is important you avoid these firms. Spending a few minutes doing research on the company you are considering is well advised, and can help avoid any problems in the future. 

So how can you be sure who you're really borrowing from? The most important thing to look out for is that your lender is on the Consumer Credit Register. After that, read the small print and make sure that you fully understand the terms and conditions attached to your borrowing. If you're in any doubt, give them a ring and talk to an advisor - a reputable firm will be happy to explain not only how your borrowing works, but how they can assist you if something unexpected happens. 

When a deal seems too good to be true, don't be afraid to tell the potential lender that you will call them back, and check them out with the Financial Conduct Authority first, who will be able to advise you on whether you should use them or not.

Back to resources

Warning: Late repayment can cause you serious money problems. For help, go to moneyadviceservice.org.uk