Tag Archives: payday loan

Payday Loan Fraudster Used Tinder to Lure and Fleece Women of Thousands

Payday Loan Fraudster Used Tinder to Lure and Fleece Women of Thousands

30-year-old fraudster Jonathan Frame used Tinder, a popular dating application, to lure and fleece lonely women. The Swinton conman would meet lonely women, steal their identity and then run up debt in their names. He would use the stolen personal information to take out payday loans as well as apply for credit cards and overdrafts according to a Manchester Crown Court hearing.

Frame would go as far as rifle through the mail of his unsuspecting victims,  set up fake email accounts and even call up lenders on behalf of his victims to get credit cards activated. In such instances, he would lie that his girlfriend at the time was deaf.
Frame spent part of his proceeds on designer clothes and restaurant meals with his unsuspecting victims. He was also ”kind” enough to buy his victims expensive gifts with part of the money.

During his 1st February 2017 Crown Court sentencing, Frame pleaded for a suspended jail
sentence claiming he had an honest job at a high-end street store. His plea, however, fell on deaf ears as presiding Judge Michael Leeming ruled that community punishment wasn’t an option since fraud was what Frame did for a living.

Frame has been jailed for one and a half years. He admitted to fraudulent offences amounting to £6,990 against two women he met in 2014 on Tinder. During his sentencing, one of the women he fleeced told the Crown Court she had contemplated suicide because of Frame’s actions. The other woman confessed to being scared of dating in the future.
Frame fleeced his first victim £6,221 in a record seven weeks. The woman is liable for the debts accumulated under her name despite being unaware of what was going on. This is because she shared personal details with Frame. The woman fell for Frame’s charm as well as his persuasive nature. She confessed to thinking Frame loved her genuinely, so she trusted him and gave him access to her house and car. Frame used this access to intercept her post and facilitate the fraud.

According to the woman, Frame has ruined her life. She also feels betrayed and doesn’t expect to live debt-free until she turns 31 in 2022. She also expects to struggle securing
a mortgage given the debts she has accumulated. She was just 23 years old when she met Frame. Frame targeted his second victim shortly after fleecing his first victim. His second victim discovered Frame was a fraudster when he left one day for good. She was fleeced of £569 in 13 days.

This is not the first time Frame is finding himself on the wrong side of the law. Frame has been convicted for 21 offences previously mainly for fraud, theft, and far-dodging. The offences date back ten years. In his latest case, Frame’s barrister Paul Hodgkinson defended his client claiming he was genuinely interested in the relationships with his victims despite the impression that he was out to con lonely women. Hodgkinson went ahead and stated that Frame was apologetic for his actions and was only keen on impressing his partners. Judge Michael Leeming wasn’t convinced of Frame’s innocence resulting in an 18-month jail term for the payday loan fraudster.

Is the Company Director of Swift Money Limited.
He oversees all day to day operations of the company and actively participates in providing information regarding the payday/short term loan industry.
How payday loans differ in other countries: UK vs. U.S

How payday loans differ in other countries: UK vs. U.S

Payday loans are the most popular short term loans globally. The loans are available in all major economies globally. If you care to know how payday loans vary from one country to another (particularly the UK and U.S.,) look no further. Here’s what you need to know;

Payday loans in the UK

Although payday loans originated in the U.S., they have grown more rapidly in the UK. According to a recent PWC study, over 40% of all youth in the UK use payday loans. The UK payday loan industry is estimated to be worth billions of pounds today.

Typical UK payday loans range up to £500. Many UK payday loan lenders, however, offer flexible lending limits amounting to more than £1,000. Interest rates stand at approximately 25% per month for typical payday loans. There are however many lenders charging way less.

Largest Participants 

Wonga is the largest UK payday loan lender with approximately 30% market share. The second largest lender is Dollar Financial Group which owns the Money Shop as well as payday lenders; Payday UK, Ladder Loans, and Payday Express.

Regulation

The UK payday loan industry is regulated by the FCA (Financial Conduct Authority). The FCA took over the regulatory role from the FSA back in 2014 in an effort to exert tighter control on rogue payday loan lenders.
In January 2015, the FCA introduced strict regulations that guide the payday loan industry to date. For instance, payday loan lenders in the UK should not charge more than 0.8% interest per day. The total charges on all payday loans including interest and default charges are also capped at 100% of the total amount borrowed.

Status

The UK payday loans industry is currently transforming. The industry has had a bad name for years due to an increasing number of rogue lenders using unfair lending practices. The tightening regulation has however brought back sanity to the industry. The FCA has fined numerous payday loan lenders found guilty of using unfair lending practices. Although many lenders have closed shop, there is still a high demand for payday loans in the UK.

Payday loans in the U.S.

Payday loans originated from the U.S. They are also known as; cash advances, salary loans, payroll loans, cash advance loans, payday advance, etc. The loans date back to the 1900s where they were known as salary purchases. Initially, lenders would buy a borrower’s next salary for less and then disburse the difference to the borrower after deducting all applicable charges. Fast forward today, the industry has grown from 500 lenders to 22,000+ lenders. The U.S. payday loan industry is estimated to be worth over $46 billion today.

Regulation

Payday loan regulation in the U.S. varies widely from one state to another. To avoid unfair lending practices, many jurisdictions in the U.S. have APR (annual percentage rate) limits that all lenders must adhere to. It’s also worth noting that some jurisdictions in the U.S. have outlawed payday loans completely i.e. Georgia. In total, 14 states have forbidden payday lending. Other jurisdictions have few restrictions on lenders.

Some states also have laws limiting borrowers from taking payday loans repeatedly. Such states include Michigan, Illinois, Florida, Indiana and New Mexico just to mention a few. These states have statewide databases that require lenders to assess a customer’s eligibility to get a payday loan before issuing the loan. There is also regulation restricting the number of times a payday loan borrower can roll over their loan. Some states restrict rollovers i.e. Arizona. Other states i.e. Delaware allow a maximum of four rollovers.

Initially, payday loan rates were restricted in most U.S. states by the USLL (Uniform Small Loan Laws). The USLL restricted the rates at 36 to 40% APR.

Status

The U.S. payday loan industry caters for the young and poor mostly, low-income communities residing near military bases. A recent study conducted by Pew Charitable research also indicate that the payday loans in the U.S. are taken mostly for subsistence or recurrent spending as opposed to funding emergency cash needs. The interest rates charged on U.S. payday loans also remains higher than other alternative short term loans. The difference in regulation per jurisdiction is to blame for misinformation as well as ongoing unfair lending practices in the industry.

Is the Company Director of Swift Money Limited.
He oversees all day to day operations of the company and actively participates in providing information regarding the payday/short term loan industry.
Payday Lender The Money Shop On Sale Due to ''Tough Times''

Payday Lender The Money Shop On Sale Due to ”Tough Times”

DFC Global, the American owner of payday loan lender Money Shop, has put the company up for sale as the company shifts focus from the increasingly regulated payday loan business in the UK.

Although DFC Global says it received a bid approach offer from an unnamed suitor, the company also admits that the Money Shop has been facing difficulties over the past few years now.

The recent crackdown on rogue UK payday loan lenders and tightening regulation has pushed DFC Global to reconsider participating in the UK payday loan industry. Since buying the Money Shop back in 1999, DFC Global has closed down more than 50% of its stores in the UK in the past couple of years as the company looks for ways of coping in an increasingly difficult business environment.

About DFC Global

DFC Global is an American-based financial services company with operations in 1000+ locations in 7 countries. DFC Global focuses on low income or bad credit consumers offering short term loans such as payday loans. The company also provides pawnbroking as well as gold buying services. DFC brands include; The Money Shop in the UK and Ireland, Insta-Cheques, We The People and Loan Mart. The company owns high-end pawnbroker, Suttons & Robertsons and also operates online short term loan lenders such as Payday Express and Payday UK.

In 2009, DFC Global was UK’s largest payday loan provider with a market share of approximately 25%. The company which was previously known as Monetary Management Corporation changed its name in 1990. DFC Global is owned by U.S. private equity firm Lone Star Funds.

The sale

DFC Global is believed to have hired KBW (Keefe, Bruyette & Woods) investment bankers to sell Dollar UK which owns; the Money Shop, online payday loan companies Payday UK and Payday Express as well as several pawnbroking businesses owned by DFC.

According to a DFC spokesman, DFC is aware of the ongoing media speculation on the sale of the Money Shop. However, the company insists that the details remain confidential between all the parties involved. DFC, however, reveals that an approach bid has been made and the company plans on assessing the offer in the ”normal” manner.

UK payday loan lender struggles

Most UK payday loan lenders have struggled to stay in business since the Financial Conduct Authority (FCA) began tightening regulation and cracking down on lenders using unfair lending practices.

In January 2015, the FCA capped the interest rate to 0.8% per day ensuring payday loan borrowers never pay over £24 in interest charges for £100 loans granted for a month. The FCA also capped the total fees and charges applicable ensuring borrowers never have to pay more than they borrow in fees and charges.

Since then, many payday loan lenders in the UK have closed shop. The Money Shop has closed more than 300 branches in the UK alone. Currently, the lender has reduced its branches from over 600 to 230 in an effort to remain profitable in an increasingly difficult business environment.

The Money Shop has faced other struggles besides having to close down most of its branches. For instance, the lender has also been forced to pay fines for unfair lending practices. Just recently, the Money Shop was ordered to pay some of its customers (147,000 customers) £15.3m as compensation for unfair lending practices ranging from system errors to bad affordability checks and debt collection practices.

According to DFC, the lender has since changed its operations by choosing to focus on pre-paid credit cards as well as longer term loans. Although this move among many other moves taken have been deemed viable, the Money Shop is still posting losses. According to the lender’s recent accounts, the UK business suffered a full year loss amounting to £104m in 2015.

Speculators have no choice but to make the worst assumptions regarding the sale of the Money Shop. Although it is clear that the Money Shop is struggling to adjust to the FCA’s new rules and guidelines on payday loan lending like most payday loan lenders in the UK who had been used to lenient rules and guidelines, a sale, that will hopefully reverse the fortunes of the lender is underway.

DFC is also banking on the fact that the Money Shop has changed operations to focus on more profitable/less risky lending.

The Money Shop is a major sponsor of football club, Wolverhampton Wanderers.

Is the Company Director of Swift Money Limited.
He oversees all day to day operations of the company and actively participates in providing information regarding the payday/short term loan industry.
Are Short Term Loans Risky? What You Need To Know

Are Short Term Loans Risky? What You Need To Know

Short terms loans such as payday loans are regarded as risky by many, however, is this really the case? If you’re looking to take out a short-term loan, but you want to know what you’re getting yourself into first, look no further. Here’s what you need to know and do to minimize the risks

Possible risks

Like any other kinds of loans, short term loans such as payday loans have risks. The most common include;

1. Misuse: Short-term loans are prone to misuse more than any other types of loans. As a result, there is always a risk that you won’t use any short term loan you take responsibly. You can do away with this risk by being a responsible borrower. You should borrow short term loans like payday loans when you have pressing needs only i.e. when you have emergency cash needs.

2. Repayment risks: Due to the short term nature of loans such as payday loans, there are higher risks of failing to meet repayment obligations as stipulated in the terms. Typically, payday loans are supposed to be paid off in full using the next paycheck. If you don’t borrow more money that you can repay comfortably, there is a high risk of having difficulties repaying the loan in full. The best way of avoiding this repayment risks is to always make sure you can repay the loan amount in full without difficulties during your next payday.

3. High-cost risks: Short term loans also tend to be more expensive than regular loans, so there is a high likelihood of being overcharged especially when you don’t take the time to borrow from reputable lenders. Payday loans are good examples of expensive short term loans if you borrow without doing your homework. There are very many unscrupulous payday loan lenders in the UK who overcharge their customers by using confusing terms and conditions. To avoid this, you need to borrow from reputable UK payday loan lenders only like Swiftmoney.

4. Habitual borrowing risks: Short term loans are also known to cause habitual borrowing i.e. borrowing when you don’t need to. You should never get a short term loan simply because it is available to you otherwise you stand to plunge yourself into a never-ending debt cycle. Furthermore, the loan might not be available to you later when you really need it. It is worth noting that failing to repay any loan damages your reputation as well as your credit rating.

5. Scams: There are also more scams associated with short term loans than there are scams associated with long-term loans. The popularity of short term loans like payday loans has attracted a lot of unscrupulous lenders out to exploit lenders. Some even pose as lenders only to steal the identity of their clients. The importance of dealing with renowned payday loan lender or broker can’t, therefore, be overemphasised. In fact, dealing with a renowned payday loan broker like Swift Money can reduce most risks associated with payday loan today.

Verdict: Are short-term loans risky?

Short term loans can be very risky if you are dealing with a bad lender. When you choose a good lender, you get rid of most of the risks associated with short-term loans. First and foremost, there’s need to worry about scams if you are dealing with a registered lender with all the relevant FCA authorization. You also don’t need to worry about paying a high-interest rate or paying more in fees because of hidden terms and conditions.

It’s also possible to reduce the risks associated with short term loans by being a responsible borrower. If you borrow a payday loan for emergency reasons only, there should be no cause for concern. A responsible borrower also uses his/her loan for the intended purpose and repays the loan as agreed. Being a responsible borrower eliminates risks of misusing your loan, having repayment problems as well as becoming a habitual borrower.

In essence, short term loans have risks. However, the risks can be eliminated by choosing a lender wisely as well as practicing responsible borrowing behaviour.

Is the Company Director of Swift Money Limited.
He oversees all day to day operations of the company and actively participates in providing information regarding the payday/short term loan industry.
Recovering Financially After Going On Holiday

Recovering Financially After Going On Holiday

The holiday season is over. You have plenty of memories as well as a huge debt to clear because you possibly got carried away and overused your credit card. You may also have taken out a payday loan or any other kind of short term loan to fund unexpected holiday expenses. How do you recover financially?

Start by lowering your spending (save more)

The most natural place to start when you want to take charge of your finances is your spending. You must make some sacrifices to repay your payday loan, credit card debt among other types of loans you may have taken during the holiday. Luckily, there is always something you can cut back on to get that much-needed money to pay your loans as fast as possible. For instance, you can stop eating out, paying for entertainment, using your personal car, etc. Pursue every avenue available to reduce your expenses as much as possible. Save more and recover financially as fast as possible.

Pay your most expensive debt first

If you have loans to pay after a holiday, you need to sit down and determine which debt is the most expensive to pay and make plans to repay such debt first. Expensive debt can take a huge toll on your finances if you don’t repay immediately. To be able to recover faster at the lowest cost possible, pay expensive debt first.

Declutter your house

This is another great way of getting money to pay off any debts that you may have accumulated over the holiday. Decluttering can also give you some much-needed cash to cater for New Year expenses that you may have overlooked during the holidays. There is always something you don’t need in your house that you can sell. Luckily, there are also online platforms i.e. eBay and Craigslist that allow you to sell households among other items online easily.

Find an extra source of income

You can also look for a job to recover financially after a holiday. There are plenty of jobs you can do online to supplement your income. You just need to find a job that is in line with your interests to make some extra money and enjoy the process while at it. The internet is full of money making opportunities. You just need to take time and search for what works for you. A typical (offline) job is also great if you can find one.

Shop online exclusively

Besides cutting your spending, you need to look for other avenues of saving money. Shopping online is a great way to save money today. The internet has the best deals on anything you can think off. Furthermore, there is nothing you can’t find and buy online today. You can save money by taking advantage of online discounts. You also stand to save on convenience. When you shop for things online, you don’t have to waste time traveling. Most online stores also offer free shipping which translates to more savings.

Open a savings account

To avoid suffering financial distress ever again while on holiday, you need to set up a savings account immediately. This tip will help you avoid borrowing when you go for your next holiday. Although this tip won’t give you quick financial gratification, the account will help you avoid getting into a similar financial situation in the future.

Summary

It is very easy to overspend during the holiday season. If you face financial constraints after a holiday, it’s time to take the necessary measures. Focus on getting more money by saving, selling what you don’t need or finding a job and repaying all your debt as fast as possible to be able to recover in record time. You can also take out a payday loan if you are in dire need of money until your next payday. Lastly, make sure you open a holiday savings account to ensure you don’t find yourself in the same position again.

Is the Company Director of Swift Money Limited.
He oversees all day to day operations of the company and actively participates in providing information regarding the payday/short term loan industry.
Money and Festivities: Top 6 Christmas Money Tips

Money and Festivities: Top 6 Christmas Money Tips

Overview

Christmas is a time for celebrations. It’s time to spend quality time with family and friends. But celebrations need financing so, how do you make sure your finances stay in check over Christmas and the rest of the December holiday? If you want to enjoy your Christmas without overspending, here’s what you need to do;

1. Plan thoroughly: This tip is very popular but commonly overlooked. You must plan thoroughly for the festivities otherwise, you will end up overspending or taking short term loans like payday loans to fund unforeseen expenses. Although there is nothing wrong with taking a payday loan to cover unexpected expenses during the festive season, some careful planning goes a long way. When you plan thoroughly for your holiday, you set aside money for everything including emergency expenses. Planning puts you in the best financial position possible. For instance, you are able to find the best ways of spending what you have. In most cases, you’ll have enough money to enjoy your festivities if you have a solid plan.

2. Shop online, save money: The internet is by far the best place to find Christmas gift deals. Online shopping has many benefits from offering the best variety to the best prices possible. Online shopping is also convenient. You don’t have to spend money traveling from one store to another. In a nutshell, shopping for Christmas gifts online is better in every sense including saving. You may see great Christmas deals in stores around you, however, the best deals are online. 

3. Takes advantage of popular Christmas gift hacks: One of the most common ways people spend money during Christmas is; buying Christmas gifts. If you’re not cautious, you could end up overspending on Christmas gifts. To avoid this, you can take advantage of Christmas gift hacks like ”Secret Santa”. As opposed to everyone buying a gift for every member of the family, every member can be assigned to buy a gift for one member only. Using this gift hack controls expenditure on Christmas gifts without compromising anything including the fun and the importance of Christmas gifts.

4. Shop during odd hours: If you have to shop traditionally, do so during odd hours. Stores are usually full of shoppers during the festive season making it hard to spot good offers. It is, therefore, better to shop at night if there are many 24-hour shopping centres around you. The festive season has great deals which can save you a lot of money. You must, however, make a point of shopping differently to save the most. Remember, shopping during odd hours saves you time and time is money.

5. Track your spending: Impulse buying is one of the most common causes of overspending. Unfortunately, it is harder to control spending during the festive season due to an abundance of irresistible offers. To save money effectively during Christmas, you must stick to your budget and buy only those items you plan for. You should have an idea where every single cent you spend goes otherwise, you will not be able to avoid overspending.

6. Don’t compete with anyone: People also tend to overspend during the festive season by trying to compete with others i.e. ”keeping up with the joneses”. Just because your friend or neighbour bought something for himself or for his wife/children shouldn’t mean that you should buy the same thing. It takes a lot of discipline to avoid being influenced by other people’s expenditure during Christmas. You have to stick to your plan if you want your finances to be in check during and after the festive season. 

Summary

You don’t need to blow your budget to have a great festive season. You can follow the above tips to ensure you enjoy your Christmas celebrations without suffering financially. Planning thoroughly is a great place to start. You also need to think of shopping online, using popular Christmas gift hacks, shopping during odd hours, tracking your spending and sticking to your spending plan. Besides, Christmas isn’t about how much money you spend but the time you spend with loved ones. 

Is the Company Director of Swift Money Limited.
He oversees all day to day operations of the company and actively participates in providing information regarding the payday/short term loan industry.
The Process Of Taking Online Payday Loans Explained

The Process Of Taking Online Payday Loans Explained

As the name suggests, online payday loans are payday loans which are applied for and taken online. Some lenders even offer online loan management. If you’ve ever wondered how all this works, look no further. Most online loan applications are the same. Everything takes place online from the application process to loan management. This makes online payday loans the most convenient types of short term loans today.

Application

All online payday loan lenders have online application pages where borrowers complete application forms. The best lenders have online application forms that are straight forward/easy to understand. Such lenders require basic information that is easy to obtain so you shouldn’t expect a complicated application process if you choose to apply with a reputable online payday loan broker like Swift Money.

A typical online loan application requires personal and financial information like;

• Your full names
• Date of birth
• Address
• City/Location
• Postcode
• Email
• Mobile phone number
• Loan amount
• UK bank account details
• If you have considered bankruptcy etc.

You may also need to consent to a disclosure document, state the purpose of the loan, state your marital status, source of income or employment details such as your employment status, monthly income, length of employment, name of employer, work phone number, next pay date, among other information like existing loans, other expenses etc.

Processing

Online payday loans processing takes place faster than typical loan processing. It may take a few minutes to a few hours depending on the lender you choose among other variables i.e. the number of pending applications. If you have filled in everything accurately and selected a lender that caters to the needs of borrowers like yourself, it shouldn’t take long before you receive an email confirming that your loan application has been approved.
Reputable lenders offer no obligation online loans with very high approval rates so you shouldn’t worry if you meet the basic criteria for application.

The confirmation email you receive should come with a loan agreement that is automatically generated once an application is approved. You should take your time and read the loan agreement to make sure it matches your expectations. If you’re happy with the loan agreement, you can proceed and finalise the application process by signing the application electronically. Reputable online loan lenders have user-friendly loan online loan application tools that enable you to do everything online so you shouldn’t worry about finalising your application.

Receiving payment

Once you have finalised your application, it takes a few minutes for you to get your money. If you filled your bank account details accurately, you shouldn’t expect any delays. Upon approval, Swift Money sends money to your bank account within 10 minutes. It can take less time. The best lenders offer options for faster payment to borrowers who don’t have the luxury of time. Charges may however apply. It’s important to note that payments may take some time to be available for withdrawal depending on your bank. It is advisable to choose a bank which processes payments fast since online loans are short term loans taken to cater for emergencies.

Paying back online payday loans

Some payday lenders offer automatic loan repayment options whereby the loan amount or repayment amount is automatically deducted during the next payday. It is up to you to choose the repayment option that is most convenient for you. If you prefer sending the payment yourself, well and good. The electronic repayment option is, however, the best if you don’t want to forget and miss a repayment and attract charges as well as damage your credit score.

Loan management

Some lenders may also have loan management tools that help you manage your loan online i.e. calculate your remaining balance, interest, modify repayment patterns, etc. Such tools are useful for online loans that require more than one repayment.

Summary

Taking online payday loans is easy if you are dealing with a reputable lender with a user-friendly and secure online platform. Reputable lenders also process applications and deposit funds to your account fast. The process of taking online payday loans is similar to that of taking conventional loans. The only difference is everything is done online thus it is more convenient and fast.

Is the Company Director of Swift Money Limited.
He oversees all day to day operations of the company and actively participates in providing information regarding the payday/short term loan industry.
Payday Loans vs. Overdrafts, Pawnbrokers and Loan Sharks

Payday Loans vs. Overdrafts, Pawnbrokers and Loan Sharks

Overview

There is a reason why payday loans are the most popular forms of short-term loans in the UK. The loans have very many benefits over competing sources of short-term cash like overdrafts, pawnbrokers and loan sharks.

Definition of overdrafts, pawnbrokers and loan sharks

· Overdrafts are short-term sources of cash provided to bank account holders by banks. Overdrafts reflect as deficits in bank accounts. They allow account holders to overdraw money.

· Pawnbrokers are persons who lend money at an interest based on the value of the article pawned.

· Loan sharks are lenders who charge high interest rates usually under illegal conditions
Below is a detailed discussion highlighting the top benefits of payday loans over pawnbrokers, overdrafts and loan sharks.

1. Payday loans are extremely easy to get: Payday loans have very little restrictions. You don’t need any security as is the case when getting short term loans from loan sharks and pawnbrokers. Also, you don’t require any credit history with any bank to get a payday loan as is the case with overdrafts. All you need is a job and a bank account. Also, payday loan lenders don’t require a credit score or history as is the case with banks and overdrafts. Payday loans are easily accessible to just about anyone you can think of who has a job or steady income.

2. Flexible borrowing limits: Payday loans are also better sources of short-term cash compared to overdrafts and loans from pawnbrokers and loan sharks because you can borrow as little or as much as you want. It is possible to borrow a few pounds to a few thousand pounds from any payday loan lender provided you are capable of repaying. Pawnbrokers and loan sharks limit your loan amount to the security you provide making it impossible to borrow if you don’t have valuable items like jewelry, cars, etc. Banks also limit overdraft limits depending on factors like cash flow.

3. Online application Payday loans in the UK are acquired online. Although there are some traditional payday loan lenders, most people take payday loans online which is fast, easy and convenient. Loans acquired from pawnbrokers and loan sharks must be acquired physically through tedious and time-consuming processes.

4. Fast processing: It is possible to get a payday loan within a few minutes after your loan application has been approved. Overdrafts take more time to be approved especially when they are being taken for the first time. The same applies to loans from loan sharks and pawnbrokers. The security must be assessed before a loan can be disbursed. The process of getting a loan from a pawnbroker or loan shark also involves lengthy negotiations.

5. Payday loans are highly regulated: The FCA regulates the payday loan industry in the UK. There is very little to no regulation governing pawnbrokers and loan sharks. In fact, most loan sharks and pawnbrokers operate illegally. Borrowers are usually exploited and coerced for repayments. Banks also charge high interests for overdraft facilities. On the other hand, the FCA limits the maximum amount of interest payday loan borrowers are supposed to pay. You will never pay more than you borrow in interest rate payments and fees if you borrow from a payday loan lender. The FCA has also put a cap on the interest rate charges at 0.8 percent per day. Payday loans are therefore the best sources of short term cash for borrowers in dire need of cash.

Summary

In case you need a fast, reliable and safe source of short term loans, payday loans are your best option over bank overdrafts or other sources of short-term cash like borrowing from pawnbrokers or loan sharks. Payday loans are easy to get, flexible, highly regulated, automated and cheaper. Competing sources of short term loans don’t offer such benefits.

Swiftmoney is one of the best payday loan lenders in the UK. We offer the best APR, repayment terms, most flexible borrowing limits.

Is the Company Director of Swift Money Limited.
He oversees all day to day operations of the company and actively participates in providing information regarding the payday/short term loan industry.
Top UK Payday Loan Companies in the UK

Top UK Payday Loan Companies in the UK

There are hundreds of payday loan lenders in the UK, however, very few standout. We’re going to attempt ranking the best lenders based on factors such as Rep APR, borrowing limits, early repayment, FCA approval among other factors.

1. Swift Money (APR: 1255.66%)

Swift Money tops the list of top payday loan companies in the UK based on many factors the most notable being APR (1255.66%) which is one of the lowest (if not the lowest) in the industry. Swift Money also boasts of having one of the best approval rates (97.5%), best payday loan approval time (have money in your account in a record 10 minutes), unmatched borrowing flexibility (borrow from as little as £50 to £1,000+), 24/7 access (apply for a payday loan anytime), efficient services (over 400,000 loan applications processed since 2011) and no restrictions.

Swift Money also has one of the most secure payday loan websites in the UK (Data protection: ZA069965, Valid certificate, Secure TLS connection and guaranteed resources security). Swift Money is also fully authorised and regulated by the FCA (Registration number: 738569). Swift Money Ltd. Is a fully registered company England and Wales. The company clearly stands out in all aspects.

2. Mr Lender (APR: 1,248.5%)

Mr Lender is a UK payday loan lender market leader in regards to reviews. The company has over 15,000 5-star customer reviews. The company is currently the best short term loan provider in the UK according to the 2016 Consumer Credit Awards. Reviews aside, Mr Lender offers flexible borrowing limits (£200 to £1000 as well as flexible repayment terms (repay your short term loan for up to 6 months). Other notable advantages include; the company doesn’t charge any upfront or no late fees. The company is also authorised and regulated by the FCA (Reference no: 673310).

3. Lending Stream (APR: 1272.0%)

Lending stream stands out for having good limits (borrow up to £1500), flexible payments (up to 6 months), great reviews (Lending Stream has 4.8 stars rating out of 5 based on 5,460 reviews). Lending Stream’s customers praise the lender for having fast, efficient and affordable loans. The company also stands out for its impressive processing speeds. Lending Stream understands that people need short term loans as fast as possible which is why funds are deposited in customers’ bank accounts in approximately 15 minutes after applications have been approved. Lending Stream LLC is also a fully licensed company with FCA authorisation (Registration number: 689378). The company also takes security and privacy very seriously (Data protection registration: No; Z2752028).

4. Quickquid (APR: 1294.1%)

Quickquid is one of the most trusted online lenders in the UK. The company has served over 1 million British citizens to date helping them take care of unexpected expenses comfortably. The company has a maximum credit limit of £1,000 for new clients and £1,500 for existing clients. Most loans are processed within 30 minutes. The company is fully authorised and regulated by the FCA (Registration number: 673738). Quickquid also observes the highest levels of data security according to the Data Protection Act of 1998. The firm has an APR of 1294.1%.

5. Wageday Advance (APR: 1294.1%)

Wageday Advance is an FCA-authorised payday loan lender (Reference no: 672831) renowned for offering flexible short term loans ranging from £80 to £1,000 and featuring repayments suitable to borrowers (up to 6 months) with no default charges and no early repayment charges. Wageday Advance payday loans are approved and dispersed fast (within an hour of application) and the company has a team of dedicated customer support staff ready to assist you in any way. Wageday Advance also takes data protection very seriously (Reg No: Z1687106).

6. Sunny (APR: 1,299.0%)

Sunny stand out mostly because of lending flexibility. Clients can borrow from £100 to £2,500 even more (for existing clients). The company offers some of the most flexible lending limits in the industry. Sunny loans are also fast (processed within 15 minutes) and borrowers enjoy flexible repayments, no application, admin and late fees. Borrowers also have the freedom to repay their loan early without being charged anything. Sunny loans also have excellent reviews (9/10 after 1,307 reviews on Trustpilot). Sunny loans also come with resources to help clients financially i.e. money management guides. The company operates under Elevate Credit International Limited, a company which is fully registered (Company no: 05041905).

7. Wonga (APR: 1,509%)

Wonga is UK’s largest payday loan lender by market share (the company controls 30% of UK’s payday loan industry. The company, however, charges one of the highest APRs. New customers also have lower borrowing limits £50 to £400 however, existing customers can borrow up to £1,000. Wonga payday loans stand out in many other aspects i.e. fast approval (approximately 5 minutes), automated services and no transfer fees. Wonga is also fully authorised by the FCA (FCA Registration number: 671454 under trading name WDFC UK Ltd).
The lender is definitely one of the best although there are better alternatives in this list like Swift Money which has longer loan durations i.e. up to 6 months instead of Wonga’s 34-day loan duration limit. Swift Money also offers installment payments. Wonga doesn’t.

 

8. Safety Net Credit (Variable APR)

Safety Net Credit makes it to this list for being one of the few UK payday loan companies that offers payday loans with no minimum/maximum repayment terms. This makes Safety Net Credit’s short term loans unmatched in terms of repayment flexibility. Furthermore, the company has great online loan management tools that allow customers to apply for loans seamlessly and monitor their accounts, access their credit worthiness and so much more at any given time. Safety Net Credit also has flexible borrowing limits ranging £100 – £500 and increase with time-based on factors like a customer’s affordability, income, credit history, etc. The company is also authorised and regulated by the FCA (Reference no: 715525). Due to the companies repayment terms, the APR ranges but stays within limits set by the FCA.

9. Ferratum (Variable APR)

Ferratum also qualifies as one of the top UK payday loan companies. The company has a global presence (provides short term loans in 22 countries globally) and one of the fastest online application platforms. Customers can complete applications in a record 2 minutes. The company also has flexible borrowing limits for all its short term loans (i.e. £50 to £1000 for new customers, high limits for existing customers). Customers can also repay their loans in 1 to 6 months with no early repayment penalties. Ferratum is fully authorised and regulated by the FCA (Reference no: 672537).

Is the Company Director of Swift Money Limited.
He oversees all day to day operations of the company and actively participates in providing information regarding the payday/short term loan industry.
Types of Payday Loans Available in the UK

Types of Payday Loans Available in the UK

There are very many types of payday loans in the UK most of which are classified by their features, how you get them as well as factors such as who is issuing them. Below is a brief discussion of the most common types of payday loans in the UK. 

Wonga loans

Wonga loans are payday loans issued by UK payday loan giant Wonga which enjoys a 30 to 40% market share of the entire UK payday loan industry. Wonga payday loans are among the oldest in the UK having been introduced in 2006. The payday loans are popular in the UK although they have spread to other countries. Wonga loans are available in £50 to £400 amounts. The loans are disbursed 5 minutes after approval. The loans come with a representative APR of 1,509%.

Online payday loans

As the name suggests, online payday loans are loans which can be applied and issued online. These types of payday loans are the most convenient because you don’t have to visit a payday loan lender physically to get them. Everything is done online from application to processing and disbursement of funds. All you need to do is go to the lender’s website and follow their instructions. The convenience of online payday loans has made them very popular today. Borrowers are however advised to deal with authorised online payday loan lenders only to avoid being scammed. You should choose a reputable lender like Swiftmoney with FCA authorisation and a secure website.

Bad credit payday loans

As the name suggests, these are payday loans offered to individuals with bad credit. Although most payday lenders in the UK lend to anyone provided you are employed or have a regular income, some lenders don’t advance loans to individuals with bad credit. Bad credit payday loans cater for such individuals. You don’t require good credit to get a bad credit payday loan. In fact, lenders don’t ask you for your credit score or rating. You just need to fill in your application correctly to qualify. The loans may, however, come with higher interest rates than usual because of obvious reasons i.e. individuals with bad credit are high-risk borrowers. It is, however, possible to get cheap bad credit payday loans.Swiftmoney offers bad credit payday loans at great rates. 

Instant payday loans

These types of payday loans are offered instantly. They may be offered online or offline depending on the lender. Instant payday loans appeal to borrowers who want to borrow as soon as possible. If you don’t any time to spare, an instant payday loan will be great for you. The main difference between this type of payday loans and others is the time it takes to process applications and disburse payments. Instant payday loans offered online are the fastest types available today because borrowers apply online and receive money within minutes. 

1-hour payday loans

Unlike instant payday loans, you have to wait for an hour to receive your loan amount. If you have some time to spare, you can apply for a 1-hour payday loan instead of an instant payday loan. You stand to enjoy some interest savings when you reduce the urgency to receive your loan amount. 

Same day payday loans

These types of payday loans are issued the same day. If you are in a hurry but you can afford to wait a few hours to get your payday loan, same day payday loans will be ideal for you. A typical same day payday loan takes a day to be processed and approved. Money is also sent the same day. The loans come at a slightly lower interest rate compared to instant payday loans because they aren’t as urgent. 

No fax payday loans

No fax payday loans are payday loans that don’t require you to fax or mail anything to the lender. Most online payday loans are no fax payday loans. These types of payday loans offer unmatched convenience by handling everything online. 

Summary

The above information summarises the main types of payday loans available in the UK. After going through the above information, you shouldn’t have a problem selecting a payday loan that serves you perfectly. 
Swiftmoney offers the best types of payday loans in the UK in regards to interest, processing speed and online application processes.

Is the Company Director of Swift Money Limited.
He oversees all day to day operations of the company and actively participates in providing information regarding the payday/short term loan industry.
An Overview of FCA Payday Loan Regulations Today

An Overview of FCA Payday Loan Regulations Today 

Background

The Financial Conduct Authority (FCA) is the body charged with regulating the payday loan industry in the UK. The FCA began regulating payday loans among other forms of high-cost short-term credit on 1st April 2014. Initially, the regulator focused on tackling poor conduct present in the industry.

The FCA began by introducing new rules on affordability, rollovers, advertising as well as the use of recurring payments (continuous payment authorities). The regulator then took a supervisory role focusing on payday loan lenders breaching the new regulations/requirements.
The UK parliament gave the FCA the duty to cap prices of short-term loans/credit products like payday loans to protect borrowers from unfair lending practices in December 2013. The rules, however, came into effect two years later (on 2nd January 2015). The regulator was involved in the entire process. The main aim of the regulatory changes was to see the price of high-cost short term loans/credit like payday loans come down and make sure borrowers never pay back more than double the amount borrowed.

According to the then FCA chief executive officer, Martin Wheatley, the new rules were meant to put an end to increasing payday debts and offer borrowers effective protections without affecting the viability of the market.

FCA stance on payday loans today: Price structure/levels

The FCA published new payday loan price caps in July 2014. The price cap structure/levels remain unchanged to date after taking effect on 2nd January 2015. They include;

• Lower costs for most borrowers. The FCA set the initial cost cap to 0.8% per day. All high cost short term loans, fees and interest should not exceed 0.8% (per day) of the amount borrowed. The initial cost cap remains unchanged to date and applies to the outstanding principal, all interest, and fees charged per day during the loan term as well as when refinancing. Payday loan lenders are however free to structure charges as they wish provided they don’t exceed the 0.8% cap.

• New protection from borrowers struggling to pay: The FCA also set default fees at £15. If a borrower has a hard time repaying their payday loan, default fees (default charges as well as interest on unpaid balances) can’t exceed £15. Interest can increase but can’t exceed the initial cost cap.

• Cost cap on escalating debts: The FCA also set a 100% cost cap ensuring that borrowers never pay back more in interest and fees than the initial amount borrowed. The cap covers debt administration, debt collection, and other ancillary charges as well as credit broking charges.
From 2nd January 2015, no UK payday loan borrower has been charged twice what they borrowed, more than £15 in default fees or more than 0.8% in interest and fees per day of the amount borrowed. The price cap structure/levels will be reviewed in 2017.
FCA payday loan regulation today on: Repeat borrowing, data sharing, supervision, and E-commerce directive

Repeat borrowing

FCA regulations remain the same for repeat borrowing. All price cap structure/levels remain the same as for the 1st loan. The FCA is however in the process of assessing the impact of repeat borrowing.

Data sharing

The FCA requires all lenders in the UK payday loan industry to participate in real-time data sharing to ensure majority of the payday loans are reported real-time. Although this regulation hasn’t been fully implemented, the current progress is in line with the regulator’s expectations.

Supervision

The FCA is currently following its standard model supervisory approach
E-Commerce Directive (ECD)
The FCA currently prohibits UK-based debt collectors from collecting debts that arise under high-cost short term credit agreements entered into by incoming e-commerce directive lenders who charge more than the set price caps. Also, UK-based debt administrators are prohibited from enforcing or exercising rights on behalf of lenders under such high-cost short term credit agreements.

The FCA is in the process of gaining powers to take action against incoming lenders who avoid rules by abusing freedom of movement rules.

Other FCA regulation stances today

Insider dealing: The FCA has powers to investigate as well as prosecute insider dealing in the UK payday loan industry as stipulated in the 1993 Criminal Justice Act.
Supervision: The FCA also has the right to supervise all regulated payday loan lenders as well as all other regulated financial firms.

Is the Company Director of Swift Money Limited.
He oversees all day to day operations of the company and actively participates in providing information regarding the payday/short term loan industry.
Short Term Loan Repayment Tips to Follow 

Short Term Loan Repayment Tips to Follow 

Short term loans like payday loans can easily plunge you into financial problems if you don’t plan to repay them in a smart way. In fact, one of the main reasons why short term loans become expensive is because of missing payments or defaulting. If you want to get the best out of your short term loan, late payments and defaults should be out of the question. Below are some of the most important tips to make sure you always meet your short term loan repayment obligations. 

Tip 1: Borrow an amount you can afford to repay comfortably

This tip applies to all types of loans let alone short term loans. You should never borrow more than you can comfortably afford to repay. A general rule of thumb is making sure you aren’t repaying your loan with more than 10% of your total net monthly income. Of course, this can vary if you have other sources of income however, you should be able to comfortably service your loan alongside your other monthly expenses otherwise, you stand to plunge yourself into financial problems. If you’re taking out a payday loan, make sure you can be able to pay off the loan comfortably during your next payday or as agreed to avoid late fees and unnecessary interest charges.

Tip 2: Plan to repay your loan in the shortest time possible to save on interest charges

Short term loans are very cheap sources of short-term cash if you purpose to pay them fast. The longer the term, the higher the total cost of the loan. Most people are tempted to take the maximum term because the monthly repayments are lower. Don’t fall for this trap. Lower monthly repayments make loans very expensive in the long term. You should choose the shortest term you can afford. If possible, you can pay the loan earlier than planned. It is, however, important to look out for early repayment fees in such instances. Some short term loan lenders charge early repayment fees to discourage borrowers from paying their loans faster than agreed. You are however free to pay your loan off as fast as you like without being charged if you choose a reputable lender.

Tip 3: Pay on time

If you can’t afford to pay off your loan faster than anticipated, make your repayments on time. Apart from interest charges, lenders make a lot of money on late fees. To keep your loan affordable, you should make sure you pay off your loan on time. You can place a standing order with your bank to ensure you never miss a payment. A standing order is great if you are a forgetful person. If you took out a loan you can afford to repay comfortably, there’s no reason why you should ever miss a payment. Apart from avoiding late fees and interest charges, paying on time will also ensure you keep your credit profile intact. 

Tip 4: Make some lifestyle changes

If taking out a short term loan is financially draining even when you choose a longer repayment term, you will need to make some lifestyle changes. You can’t afford to maintain the same lifestyle if you have loan repayment problems from the onset. You have to cut down on unnecessary spending like eating out, going to the movies, weekend getaways, etc. until you pay off your loan. In most cases, you don’t have to make drastic lifestyle changes since most people incur unnecessary expenditure unknowingly. You just need to track your money more keenly ensuring you spend on necessities only until you settle your loan. 

Tip 5: Keep looking for extra income

You should also be looking for extra sources of income to pay off your loan. If you have some free time, you can find a part-time job. The idea here is to make sure you pay off your loan as fast as possible, preferably in advance. You should also use any windfall gains you get i.e. a bonus, tax refunds, etc. to repay your loan instead of spending on luxuries. Ideally, you can’t afford to spend on luxuries if you have outstanding loans so, use windfall gains wisely. Paying an extra payment will reduce your interest payment as well as give you some breathing space. 

Summary

The above tips are bound to help you repay your short term loan fast, comfortably and cheaply. It’s important to note that short term loans become expensive when you miss a payment or choose the longest term. When you borrow what you can afford to pay, pay on time or plan to repay your loan in the shortest time possible, you shouldn’t have a problem repaying your loan in full stress-free. You should also consider making some lifestyle changes and looking for extra income to boost your current income. Provided you choose a good lender, you shouldn’t be worried about being charged for repaying your loan early.

Is the Company Director of Swift Money Limited.
He oversees all day to day operations of the company and actively participates in providing information regarding the payday/short term loan industry.