Payday loans are often given negative attention in the media because they’re viewed as a form of high cost credit. However, while banks are clamping down ever harder on customers who don’t stick to the terms of their overdrafts, and inadvertently pushing some customers into unmanageable debts, a leading payday loan company says payday loans offer consumers another option when faced with a need for emergency credit. It also advocates the simplicity and transparency of this option, especially when compared with unauthorised credit charges.
A national newspaper recently highlighted the plight of a young couple who found themselves being expected to pay out a staggering £1,700 to a high street bank – all because they went overdrawn by eight pence.
Angela Hannibal, from Essex, had an account with a high street bank on which she was charged a monthly administration fee. When, one month, that fee took her overdrawn by just 8p, her bank immediately demanded a £170 administration charge.
Angela, who had a young son with her partner, Wayne Green, could not understand how they were continually paying back money to the bank and then getting charged again every couple of months, which kept the debt spiralling out of their control.
Payday Express maintains that their instant payday loans offer consumers a choice in the short-term credit market; an alternative to being at the whim of fees imposed for unauthorised credit. Angela could potentially have avoided those extra charges had she taken out an emergency loan to clear the debt initially or, better still, to avoid going into unarranged overdraft in the first place.
Via EPR Network
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