Several Vain Fears of Payday Lenders
There is often something of a common misconception when it comes to the subject of payday lenders which has the potential to cause nothing other than harm to the business and potential borrowers alike. While the vast majority of people would not think twice about trusting a major lender with practically all of their worldly assets, new payday lenders in UK are often looked at as something of the black sheep of the financial world. Why? Well, the reasons are fairly obvious and not difficult to understand, but can easily be resolved with a little-common sense and realistic thinking.
- Payday lenders are new, therefore how can we trust them?
Indeed, payday lending is a new practice in an official capacity, but the simple fact that such now takes place IN an official capacity is the answer as to why they should be trusted. Such services are monitored, regulated and bound by the same laws as all major financial institutions across the board.
- Payday loan fees are extortionate
This is a myth born from outdated loan-sharking practices of the past and has no bearing whatsoever on the modern lender. Again, as stated above, payday lenders are bound by the same codes of practice as all other financial organisations, therefore cannot and do not impose unreasonable charges. Instead of relying on anecdotes, check out the figures online for full clarification.
- Payday lenders target those unable to repay balances
When actually considered rationally, this is one of the most nonsensical myths imaginable, though remains the firm belief of countless sceptics. Think about it...what exactly would be the point of lending to those unable to pay the money back? To impose higher charges? How exactly would they be able to pay the higher fees if they could not even afford the original charges? A quite ridiculous and damaging myth to say the least.