Payday Loans Direct Lenders

7 Key Questions to Ask About Payday Loans Direct Lenders

There are many of payday loan direct lenders in the UK today. None is the same and many are not as good as they claim to be. The large number of potential lenders makes it difficult to find a good lender, which is why must dig deeper into the lender’s background.

The answers to the following seven key questions about each potential payday loan lender you are considering will help you to find the best lender for you:

1. Is the lender Authorized/regulated by the FCA?

Before you borrow from any payday Loans lender in the UK, ensure they are authorised/regulated by the Financial Conduct Authority (FCA). Look for their FCA authorisation number, company registration number, registered office, business name, telephone number and postal address. 

You should be able to find this information easily and quickly from the lender’s website. Alternatively, you can check the FCA register at https://register.fca.org.uk/ to see if a lender is authorised by the FCA.

You should only deal with an authorised/regulated business because it guarantees that it complies with strict legal requirements to protect consumers. Dealing with unauthorised or unregulated payday loan lenders is very risky. You may not be adequately protected as a consumer and the lender may not satisfy all of the legal requirements.

2. What APR rate do they charge and is it the correct measurement?

Now that you know you are dealing with a licensed and regulated payday lender, it is time to discover how much they are charging.

UK payday lenders state their interest rate charges as an annual percentage rate (APR), which can be confusing because payday loans are intended to be repaid within a month – not a year.

An important thing to note is that you won’t actually pay the stated APR charge. Instead, you will pay a fraction of it depending on factors such as how much money you borrow and over what period of time it will be repaid.

The best payday lenders will tell you the total amount of money you will be required to repay before you commit to the loan. That means you shouldn’t worry too much about the APR. However, the lower the APR, the less you will have to repay much much less.

3. Are there any additional or hidden charges?

Some lenders have hidden charges such as charging extra for using the faster payment system to get the money into your bank account. Not all payday lenders are transparent about the charges they add on to the loan. All the payday loans direct lenders who Cashpanda.co.uk works with will charge interest only.

They don’t charge you for repaying your loan early and they also don’t charge a loan processing fee or other upfront fees before you even agree to having the loan. It is essential that you do your research before agreeing to a loan so that you do not get any unpleasant surprises.

On the subject of additional fees, all payday lenders will charge additional interest for late payment. Such charges are usually clearly stated, and they can be avoided by repaying your loan on time. as late repayment can cause you serious money problems. For help, go to Money Helper.