Payday advances, along with other short-term financing

This site contains information on our basic method of complaints about pay day loans as well as other short-term financing. If you’re interested in information especially with regards to Covid-19, please glance at our specialized web page which has information for customers about complaints pertaining to Covid-19 .

What exactly are payday advances?

Payday advances are a form of borrowing referred to as “high-cost, short-term credit”. You borrow between ВЈ50 and ВЈ1000 and spend back once again the mortgage with interest, in a single re re re payment on or right after your following payday. This type of borrowing is often higher priced than various other kinds of credit.

There are some other kinds of short-term financing, including:

  • instalment loans – payments are spread regular or month-to-month over several repayments, typically between three and a year
  • ‘running credit’ or ‘flex credit’ – the way this works is comparable to a bank overdraft, borrowers and offered 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 kind of credit is high priced and meant for short-term only use.

Forms of complaints we come across

We get complaints from consumers who inform us that loan providers:

  • lent them cash without checking they can’t pay that they could afford it, and now they have a lot of extra interest and charges
  • had been unreasonable or unjust whenever their situation that is financial changed
  • were not clear about when re payments had been due

That which we have a look at

As with any loan providers, short-term loan providers need to ensure that they’re offering credit in a accountable method. They have to finish reasonable checks to make certain you are able to settle financing before agreeing to it . Read more