All of our payday lenders must have a responsible lending policy to protect customers. Some are members of various bodies such as the Consumer Finance Association or the BCCA which means they have signed up to a Code of Practice for short term lending. We have listed some of the items below that are extracts from these codes of practice. Please ensure you check the responsible lending codes of practice of the lender that accepts you for a payday loan.
Understand that payday day loans are by their very nature short term loans generally taken over the period of a month or less. If you have to take out more than four payday loans a year to bridge a gap in your finances then it is recommend that you seek some budgeting or debt advice.
Payday loans are not recommended for items such as holidays or 'leisure'. They are intended to help you bridge a gap in your finances to get to payday when you have had an unexpected bill such as car repair or you need to replace an essential household appliance.
Ensure that you have reviewed and understand the APR and APR example of the lender that is offering to accept you for a loan.
Ensure that you can pay back the loan when it comes to payday. Do not borrow more than you can afford to pay back. If you think you are going to have any problems with paying back your loan please contact your lender directly as soon as possible and they will work with you to get a resolution that will work for you.
Ensure the payday loan site that you use has SSL technology to ensure that the details that you put in the application stay secure and private.
Ensure the payday loan site that you use displays a FCA Interim number and that the company is registered with Data Protection.
Many lenders will not allow consumers to borrow more than 30% of their net income each month so if you make an application and you are not accepted try for a lesser amount if it covers the amount you need.
What we and our lenders don't do:
Target people with debt problems
Lend to people who they believe cannot afford to repayPayday loans are not recommended for items such as holidays or 'leisure'. They Deal with customers if there is any question about their identity or authenticity
Implications of late or non-payment:
Don't borrow money you don't think you can pay back
Talk to your lender and they will help as much as possible
Please be aware that non repayment by you will result in your lender reporting this to the Credit Reference Agencies which may have a negative effect on your credit score. If you are having problems making a payment please contact your lender using the contact details on the ‘contact us’ pages of their website. If you need help locating these contact details please email firstname.lastname@example.org and we will provide the details for you. Your lender will be happy to discuss your payment options.
Some but not all of the lenders in our lending panel may charge a late/missed payment fees of up to £15.
Each lender has its own specific policy in regard to late and non-payment which can be found on their website.
You can find more code of practice information for the CFA here - CFA Code of Practice