With the new regulations of payday lenders in the UK from 1st July it seems that consumers will now have more choice and can get the best deals on payday loans. When looking at a payday loan you have many options such as cash advances, overdrafts and direct debit etc. But there are many things that can be done to save money. This is why looking around is so important, to find the cheapest quotes, or the best deal for your needs.
First and foremost the payday loans industry are under new regulations which must be adhered to. These regulations state that lenders must inform borrowers of their right to rate and fees based on their credit status, previous borrowing and income forecast. Also, the lenders must explain their terms and conditions clearly, this may not always be the case as the current regulations do not allow any mention of certain terms such as interest rate tiers or even the term of the loan. This means that the borrowers must find out the facts as well as there are no hidden charges hidden that can be made later.
Payday lending is now offering a lot more flexibility than ever before, and this has been one of the main focuses of the UK Government in recent times. As well as this they have introduced a default charge to stop lenders overcharging and to also limit how much interest they set for default payments. This has meant that borrowers can find a great deal and get competitive quotes without having to pay extortionate prices. With all these changes in place the UK payday loans industry can only benefit from this.