What exactly are pay day loans?
Payday advances are a kind of borrowing referred to as “high-cost, short-term credit”. You borrow between ВЈ50 and ВЈ1000 and spend the loan back with interest, within one re payment on or right after your following payday. This sort of borrowing is often more expensive than several other forms of credit.
There are more forms of short-term lending, including:
- instalment loans вЂ“ payments are spread monthly or weekly over several repayments, typically between three and a year
- вЂrunning creditвЂ™ or вЂflex creditвЂ™ вЂ“ the way in which this works is comparable to a bank overdraft, borrowers and provided a ‘limit’ they need to, provided they pay at least the interest off each month that they can draw up to as an when. Although the credit contract have not fixed end date, this particular credit is expensive and designed for short-term only use.
Kinds of complaints we come across
We have complaints from customers whom inform us that loan providers:
- lent them money without checking they could pay for it, and today they’ve plenty of additional interest and charges which they can not spend
- had been unreasonable or unjust whenever their financial predicament changed
- were not clear about whenever re payments were due