Payday Loans Popular in England

Posted On: August 23, 2010 at 2:09 p.m.

Filed Under: debt England payday loans

Recent studies are showing a significant increase in the number of payday loans being taken out by the average consumer. Of course, this means big business for those in the industry, but it also suggests something about the economy. Here is what is happening in England: “The number of people taking out expensive payday loans has quadrupled over the last four years, a new report by Consumer Focus highlights. The consumer champion warns that banks need to offer affordable short-term loans as alternatives, as well as recommending stronger safeguards to protect consumers from spiralling payday loan debts. [[ads]] In its study – ‘Keeping the Plates Spinning’ – Consumer Focus estimates that the number of people using payday loans has increased fourfold since 2006 to 1.2 million people, borrowing a combined £1.2 billion ($1.8 billion). Charges typically range from £13-£18 ($28) interest for every £100 ($155) borrowed, but can be as high as £30 per £100 for some online providers. This can generate APRs in the region of 1000 per cent to 2000 per cent given the short-term nature of these loans” (http://www.cpifinancial.net/v2/fa.aspx?v=0&aid=588&sec=Retail%20Banking). Of course, this might suggest that the economy in England is requiring individuals to take out more loans. It might also suggest that loans are hard to come by from banking institutions. Why do you think these loans are so popular right now?

Comments






*Rapiddollar.com is not a lender, does not broker loans to lenders and does not make cash advances or credit decisions. Rapiddollar.com will submit the information you provide to a lender. This site does not constitute an offer or solicitation to lend and providing your information on rapiddollar.com does not guarantee that you will be approved for a payday loan. Rapiddollar.com is not an agent, representative or broker of any lender and does not endorse or charge you for any service or product. The time it takes to fund your loan may vary between lenders and may depend on your individual financial institution. In some circumstances faxing of documents for verification may be required. Please contact your lender directly for questions or concerns regarding your cash advance. Payday cash advances are meant to provide you with short term financing to solve immediate cash flow concerns and should not be considered a long term solution.

**Typically lenders will not perform credit checks with the three credit reporting bureaus: Experian, Equifax, or Trans Union. Some lender may use alternative providers for credit checks or consumer reports.

Residents of Georgia, Ohio, Virginia and West Virginia are not eligible to apply for a payday loan through rapiddollar.com.