Questions for Early Pay Day Loans
Questions for Early Pay Day Loans (EPDL)
There’s been much criticism of the British banks this year – what’s your professional opinion on there lending structure and how does it compare to EPDL?
The British banks lending structure has as a whole has come under criticism for irresponsible lending practices -for example with regards to the subprime mortgage industry and with personal loan allowances far exceeding customer's repayment abilities.
At EPDL we take care to review a customer’s indebtedness, and credit limits are set accordingly. It is not in our interests to financially overload a customer as they will then struggle to make their repayment.
Can you confirm/dispel any of the ‘myths’ surrounding loan companies – they have a bad reputation…
The main "myth" surrounding payday loans is the continuous quoting of the annual percentage rate (APR). The maximum term for a payday loan is 30 days, so having to quote the interest rate on an annual basis is quite misleading.
A payday loan from a reputable payday lender will be charged at a flat fee, usually £25 for every £100 borrowed, repayable on your next payday. Compare this to the charges levied on bank accounts for going slightly overdrawn and it’s a no brainer.
What’s your opinion on some people’s criticism about loan companies praying on the vulnerable?
There has been unfounded criticism in the past that payday loan companies prey on the vulnerable. There are a lot of people who, after being turned down by their banks for credit or an overdraft increase, would be heading for hefty charges by their bank when they go overdrawn. Payday loans are a more affordable way of avoiding these charges.
What is the procedure in applying for a small term loan and who can apply?
We can accept applications from anyone who is over 18, in permanent employment and has their salary credited to a bank account. All applications received will be assessed and a decision made as to whether EPDL can help.
Do you have any advice for those of us struggling for a bit of cash before pay day or to tie us over – what can we do to ensure we are managing our debt well?
If you find yourself short of cash, make an application to a direct payday loan company. Always remember that payday loans are a short term answer to a short term cash flow problem.