We’ve all witnessed the level of consumer detriment caused by payday lending.  The recession has most definitely driven more and more consumers towards this form of borrowing since credit from the banks dried up, even though the APR on these can be as much as 4,000%.  The biggest problem with payday loans is that the majority of borrowers do not use them as they are intended, and this causes the snowball effect.  They go back for more, time and time again and rolling over becomes a habit – an expensive one! Continue reading →

Following the introduction of the Payday Loan code of practice which was introduced by the Consumer Finance Association on 14^th July 2011, there are a number of views bouncing around out there.  Some see it as the payday lenders taking steps to construct good practice, which if adopted ‘all round’, will result in everyone singing from the same hymn sheet & the more boisterous among them toning down their ominous tactics when collection of the debt becomes debt collection! Continue reading →