FAQs

1)What are the charges?

Example – £25 per every £100 borrowed. Usually no administration fee to set up the loan.

You Borrow You Repay *

£80 £100

£100 £125

£200 £250

£300 £375

£400 £500

£500 £625

£600 £750

£750 £937.50

* Payable in a single payment on your payday

2)What is APR?

APR is Annual Percentage Rate. It is interest payable on amount you borrow and other charges, expressed as an annual rate charge. Lenders have to tell you their APR before you sign an agreement.

3) When will I get the money?

When approved, usually the same day. Some banks can take a little longer to clear funds into your account. Thus, in most cases, the money becomes available in 24-48 hours.

4) How do I qualify for a payday loan?

You must satisfy the following:

Be 18 years of age.

Be a Full/Part-time employee (not self-employed, temp.

Be Paid monthly.

Be Paid by direct deposit.

Have a bank account with a valid Debit Card.

Be Paid a minimum of £750 a month.

Be a UK resident.

Have a valid email address.

Have a valid landline and mobile.

5) Need to run a credit check?

Yes, a credit check is performed on borrowers.

6) What is the maximum amount that I can apply for?

You can normally apply for between £80 and £1500 depending on monthly earnings.

7) Do you need to contact my employer?

No, Recent payslips are adequate.

7.1) Can I be approved even if I only work part-time?

Yes, as long as your payslips shows that you are in regular employment.

9) Are payday loans the same as personal loans?

A personal loan is a loan from a bank, building society or other financial institution, usually for a period of six months to five years, at a fixed rate of interest. A payday loan is a type of short term, unsecured loan.

10) Will I be allowed to use my payday loan for anything i want?

You will be asked what the loan is for, but generally you spend on what you want.

11) Can I apply by phone?

Some do, but evidence needs to be provided by fax or online.

12) What if I can’t pay?

You maybe able to roll over the debt, but this is a bad idea.

If you cannot pay, then usually the loans is sent to a debt collection agency.

13) What action can be taken by companies for default?

If you default on a payday loan, the lender will probably call in a debt collection agency to reclaim the money or the Small Claims Court.

14) Is the industry regulated?

The payday loan sector is very lightly regulated in the UK. However, a payday loan provider must have been issued with a consumer credit licence, in order to trade legally.

15) Where can I go to get help with non-payment of a payday loan?

Your local Citizens’ Advice Bureau (CAB) The Consumer Credit Counselling Service (www.cccs.co.uk) also offers advice for people with debt problems.

16) Who can I complain to about a bad company?

The Office of Fair Trading (OFT) which deals with consumer credit licensing.

17) Does getting a payday loan improve my credit score or rating?

Yes, since a credit check is run on you, paying off the payday loan may well improve your credit record. IF you default, that maybe a bad score against you.

18) Are there checks I can perform on lenders?

You can check with the OFT whether a lender has a consumer credit licence. Only deal with loan comapnies your country.