Payday loan companies to focus on customers

See what improvements are at hand for current and prospective payday loan clients.

By Nicole Hamer |

14:03 24 April 2013

Payday loans are a fact of life for many in the UK, though the interest rates are notoriously high. The Payday loan industry is currently undergoing tremendous changes which will benefit many current and prospective customers if they find themselves in need of money.

 

Many times we encounter financial struggles and before we know it, we have neither the credit rating to enable us to help ourselves out with a loan, or the means to improve our credit rating.

 

We’re stuck in a vicious cycle, but the financial needs continue undeterred. While payday loans should not be the first place you try if you need fast money or a short term loan, the reality is that we often don’t have much of a choice.

 

The good news is that plenty of changes will be happening to impose more regulations and consumer-friendly methodologies.

 

What to expect for payday loan experiences in the future:

 

• Unethical entities—these loan offices give all payday loan offices a bad reputation which is unfair to the industry. There is a middle ground that the industry is trying to reach in order to balance the needs of business and the needs of consumers. Plans are in place to try and root out the unethical lending offices.

 

• Clarity—payday loan offices are working to ensure that consumers are given clear information about how the loan process works and the repayment expectations.

 

• Repayment options—the industry is working to find reasonable ways to allow customers to make payments in the event that they are struggling to do so.

 

• Responsibility—payday loan offices are also working to ensure that they are not allowing loans to people they know cannot afford to repay them.

 

• Collection behaviour—past complaints were made regarding the types of collection behaviour that had been allowed. The industry is taking this concern seriously and working to overhaul the processes in place for obtaining repayment in the event of defaults.