If anyone is ever looking to borrow money from the financial market place, that person may or may not know just how many different borrowing options there are out there and available to select from.

1. Affordable loans in UK

2. CHARGED INTEREST
Historically many lenders,
like the famed Wonga,
charged interest rates
exceeding 5,000% APR on
these payday loans. At no
point in our country’s
history such heavy interest
rates were seen.

3. NUMBER OF COMPLAINTS
Not only this but also a
huge number of complaints
were received where the
customers did not get a
loan and still their bank
accounts were charged
with heavy fees.

4. INTEREST RATE
The interest rates charged
on payday loans cannot
exceed 0.8% per day. This
brings down the overall
APR and limits the ability of
payday lenders to
overcharge their
borrowers.

5. TOTAL REPAYMENT
Many borrowers who could
not pay the loans on the
requisite date ended up
ratcheting up huge default
charges which would take
the repayable amount to
astronomical size.

6. PROSPECTIVE CUSTOMERS
When the payday loans
were available in the mass
market their strongest
point touted to prospective
customers was their ease
of processing and
repayment.

7. THE BIGGEST SETBACK
The biggest setback from
these regulations would be
to Payday Loan Brokers.
Such a regulation was
inevitable given the huge
number of people affected
by payday loans and the
increasing pressure on the
government to rein this
sector of the financial
markets.

8. REGULATIONS REGARDING
On 2nd January, 2015 new
regulations regarding the
payday industry came into
effect. They have put a
ceiling on the interest,
default charges and
maximum repayable
amount for payday loans.

9. THOUSANDS OF POUNDS
This led to some borrowers
getting burdened with
thousands of pounds of
debt when they had
borrowed £100 or £200.
Many influential sections of
society came out in open
opposition to the payday
lending.

10. SECURING THE FINANCE
However within the payday
industry the borrowers
overlooked this factor as
the initial principal loan
was small and the primary
driving factor was securing
the finance.

11. CANNOT WORK WITH LOWER MARGINS
This is true for almost all
the remaining payday
lenders. Many have even
closed their shops knowing
that they cannot work with
lower margins.

12. TRUE BLUE LOANS
There are several firms in
the market, like True Blue
Loans, which not only give
the borrowers adequate
advice but provide them
with the option to repay in
3 to 6 months.

13. THE TAXPAYER’S MONEY
It also ensured that this
problem was tackled head
on before it became too big
and lead to any loss of the
taxpayer’s money. The
heydays of payday lending
are definitely past us and
we should see a new
beginning of prudent and
responsible lending from
short term lending
businesses.

14. Thanks for watching
More Information:-
http://www.bfwggrants.co.uk/