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Payday Loans no faxing required

Your guide to all Payday Loans

Payday Loans are suitable for those with any type of credit rating and are useful in times when you need a relatively small amount of cash (less than £1000) and can pay back in a short period of time.

Pay interest, In more ways than one: consumer champion warns that payday loans can be trouble

Consumer watchdog in the UK Which? has warned consumers that payday loans are "bad news", particularly for consumers who have a poor credit rating.

This comes as new information confirms that the UK does not have a limit on annual percentage rates, meaning that there is no regulation on the amount of interest that payday loan companies charge their customers. One company was seen to have an APR of over 2,000%.

The independent consumer Which? urged consumers to consider other options, saying: "Before you take out a loan, check to see if you are eligible to join a local credit union.”

It is understood that credit unions provide some consumers with the opportunity to engage in a short-term loan with interest rates nowhere near as drastic as the ones that are seen in most countries.

There are fears that some people have built payday loans into their budget so that they can get money in advance on when it is due.

Even though there are ways for people to complain for to the Financial Ombudsman Service, many people who believe they have been untreated fairly by companies that offer payday loans are not eligible to file a complaint.

This is because they were told about the rates that they would be paying and agreed to them at the time – in some cases, the fees can be as much as £50 for £200.

Advice has been simple for people who do need or are considering to take out payday loans. The general advice is to only borrow what you need and to pay it back in the smallest amount of time possible. This way, it can be ensured that you pay the least amount of interest possible, a desired benefit considering the usual high rates.

The Office of Fair Trading believes that there is a lot of competition out there, which could mean that you have many different options for loans at your disposal. Having a look around for the best rates can be highly beneficial.

The consumer organisation Which? stands by its advice that payday loans are bad news. If you do decide that a payday loan is necessary however – be sure you know what you are getting into bef0re you sign the dotted line, and if you are misinformed or are treated unfairly, you get it sorted with a financial authority like the FOS.