This week we welcomed in 2018 and the many changes it is sure to bring. But, there is one thing that it is here to stay- new payday loan lenders and instalment loan lenders are put to stay popular in 2017 despite the changes in the previous year. Last year saw the introduction of new regulations from the Financial Conduct Authority who implemented a range of repayment caps to stop the exploitation of consumers.
The changes were introduced to save customers money and we, at The Lenders List recommend you always shop around and compare when searching for a loan lender.
Comparing New Payday Loan Lenders In 2018
Using a payday loan lender or a instalment loan lender shouldn’t be a habit for you and can be a last resort when looking for solutions to financial issues. Should you find yourself needing one, we strongly advise you to compare the terms and rates of the different lenders since there are many to select from. Just because a business takes your application it doesn’t signify they’re offering the most suitable choice for your circumstance. We suggest that you keep a watch out and hunt for new payday loan lenders since they’ll be fresh to the sector and attempting to compete with some of the very well-known names. This means that they are very likely to have highly competitive rates or may be offering special introductory deals. Even in the event that you have already borrowed from a specific lender, that doesn’t mean that you want to adhere to the identical business because you might be passing up a better deal rate elsewhere.
Payday Loan Companies For 2018
Last year’s payday and instalment loan changes came about following a series of criticisms of this industry. The FCA took over regulation of the industry in 2014 and so were eager to make changes as soon as possible to correct what they believed were unfair fees on short term credit.
The criticism comprised extortionately high interest rates as well as lenders causing severe financial and emotional stress to borrowers. The FCA immediately realised something required to change to make the market fairer.
Some of the changes included a daily interest cap of 0.8%, in addition to a limitation of 100% on the amount borrowed meaning customers would not be requested to repay over double what they borrowed. They also introduced stricter credit and affordability checks and stated that following a maximum of 2 failed attempts to take payment from a debit account, lenders would need to contact borrowers to return to some kind of agreement.
This season, with the changes in total effect we should see a continuing shift towards responsible lending making payday and instalment loans much safer option for borrowing.