Payday lenders asked to refrain from providing payday loans

Choosing your lender carefully holds the key after all

07:58 18 July 2013

The Office of Fair Trading toughens up on payday lenders as reportedly eleven of them has committed to refrain from further offering payday loans or other short-term loans, and 22 more are apparently expected to follow suit as a response to the body’s final demand.

 

Fifty of the biggest payday loan companies have received letters from the Office of Fair Trading as results of a year-long investigation of these companies divulged the lending practices that put their borrowers in a difficult situation, it has been reported.

 

Even in the midst of a financial emergency, which may require us to seek out the services of a lender, we should never do everything in haste. Looking at the offers of several loan providers, comparing their rates etc., will help to slightly sweeten things when we find that we may have to look at loans.

 

The following tips could help us choose a good, if not the best lender.

 

Deciding on a lender to use could be a complex undertaking. To be able to find an appropriate lender, decide on the factors that are most important to you such as interest rate, APR, fees, loan packages, EMI, or lowest price paid over a period of time.  Meet with several lenders so you can determine which lender can fulfill your needs.

 

To be able to understand what you are getting into before signing the loan agreement, learn everything about mortgages. When not sure of something, do not hesitate to ask questions for your peace of mind.  

 

It would be to your best interest to deal only with reputable lenders who are transparent and willing to provide their clients with all the necessary information to help them make a wise decision regarding their loan. You can research on the lender’s reviews to find out what their previous clients think about them.