Whatever you may think of Wonga, they are one of the leading payday lenders in the UK and have a good section of the market share.  Nevertheless, several customers have discovered that their lending policy seems to have a few quirks.

  Like most payday lenders, customers build up a trust rating with Wonga depending on how they conduct their account.  Paying loans back on time or early, borrowing responsibly and keeping up repayments are all things which help to build trust.  However, several trusted customers have  found themselves unable to borrow from Wonga, even though they are long term customers and have conducted their accounts responsibly in the past.

“I was totally confused as to why they had refused me for a loan.  I had already successfully paid back two Wonga loans and there was nothing new on my credit record as I checked this.  I have no idea why they refused a loan, but this isn’t the way they should treat their loyal customers” said one unhappy Wonga customer. Another customer was accepted for her first loan for £300 which she settled in a couple of days when some unexpected income arrived.  However when she later tried for a small loan of £100 she was refused.   Perhaps Wonga dont like customers who settle their bills quickly?  It does seem strange that customers who have built up trust with the company should suddenly be refused for no apparent reason. In this climate and considering the money they fork out on those dreadful Wongies adverts every day, it would surely make more financial sense to keep existing customers than find new ones.

Payday loans are designed for financial emergencies.    People applying for such loans are often in difficult financial circumstances and need genuine offers of help urgently.  It is disturbing therefore to see unscrupulous payday lenders attempting to cash in on peoples financial difficulties by charging them fees to apply for loans they have no chance of being accepted for.

One scandalous example is the case of a young woman who needed a short term loan (6 days) of £50 just to tide her over until her wages hit her account on the following Monday.   Her credit wasn’t too good so she applied to a payday loan broker who promised no credit check loans.  The case of no credit check payday loans is deceptive at best – the only lenders who are willing to lend to an applicant with no credit checks are guarantor loan companies.   The payday broker does not perform any credit checks although the lenders will – therefore payday brokers can legally advertise no credit check loans – its  a nasty little practise at best.  However, back to our payday loan applicant.  After being refused initially on the grounds of her credit history she was passed on to another lender and told she had been accepted for her £50 loan. However, the lender required a £65 application fee – which was not refundable.  This is nothing short of a scam designed to take advantage of the financially vulnerable.  Obviously the logic of paying a £65 fee to get a £50 loan has bypassed this particular lender, but if someone was to apply for a more substantial loan – say £500 or £1000 then someone may just be tempted to pay the fee.  Whether or not the loan would actually be paid is up for debate but it is very unlikely.

Some may recall a similar case with the now defunct lender Yes Loans.  Applicants were being told they had been accepted for a whole range of loans – up to many thousands of pounds, even though they had bad credit records and had no realistic chances of getting the money promised.  They were also charged an application fee – which varied from £30 to £80, and incurred the wrath of the OFT, eventually causing Yes Loans to be wound up.

The message that we really wanted to get across is dont pay up front fees for applying for a loan.  Avoid payday brokers and apply direct to the lenders if you want to be sure you are applying for a genuine loan.

For a list of direct payday lenders click here 

Payday loans can be a financial lifeline or a financial nightmare depending on the stance you take on them.  For many people, payday loans have provided a quick financial fix when money was tight.  The loan was paid off within a month and the entire situation was relatively painless.  For some people though, payday loans have turned into something of a nightmare.  One of the main reason for complaints to the Office of Fair Trading about payday loan companies is the massive charges they apply to your account if you fail to meet a repayment for any reason.

One recent complaint we received was about payday loan company Quid24.  The customer had taken a £110 loan out and had found themselves unable to make the repayment on time.    Quid24 had applied 3 separate charges to the account, a fee of £60 for sending out the first reminder when the loan is one day late, a 2nd reminder fee of £50 when the repayment was 2 days late and another £30 third reminder fee.  The initial £110 loan had turned into a nightmare £250.    Quid24 defend their charges saying that they need to send out a strong message to customers in order to prevent them from defaulting. The problem is that these fees also apply to the cant pays as well as the dont pays.  When a customer cannot pay an original £110 loan, hitting them with an additional £140 in charges is quite frankly shocking.

The good news is that these fees are most likely unlawful and unenforceable – and can also be reclaimed.   The OFT is recently taking a hard line stance against payday loan companies and excessive fees and fees over what it reasonably costs to administer the account are unlawful.  The most the company is legally entitled to is the original sum plus one months interest.

The difficulty is that there is no standard for interest or charges when it comes to payday loans.  They are pretty much unregulated in this area and can charge whatever they like – or think they can get away with.  They may threaten debt collectors and court action, but in reality they can do very little.  A payday loan company who charges £250 for a £110 debt is unlikely to want to explain themselves in court, as they know they are skating on very thin ice.

The important thing is to always check the small print when taking out any payday loan.  Circumstances can change suddenly and no-one can say for certain that they will be able to pay the money back on the date promised, so a loan company who keeps default fees down to a bare minimum can save money and hassle.  Reputable lenders understand that circumstances change and will work with the borower to reduce fees and come to a workable solution.  In the meantine, if you are being threatened with hefty payday loan charges or default fees, contact the Citizens Advice for help as the chances are the fees are unlawful.

With many of the high street banks now issuing prepaid debit cards, we look at what they are and what are the benefits of using them.  Traditional debit cards have been linked to a bank account, meaning that if fraudsters got hold of your debit card details they could effectively empty your bank account.  Prepaid debit cards are stand alone debit cards which are not linked to your main bank account, and are preloaded so you can only spend what you have on the card.

Prepaid debit cards are often used for budgeting, as you have to top up the card  before using it in a similar way to a mobile phone top up.  Prepaid debit cards are quick and easy to get and available to everyone – no credit checks are needed and if you only want to keep small amount of money on the card no ID is needed either.  They can be either Visa or Mastercard and are accepted at all the places regular debit cards are, including online and in stores.  They can also be used at ATMs to withdraw cash and overseas.  In short, they work in exactly the same way as traditional debit cards, but have to be  topped up before use.

The Advantages of Prepaid Debit Cards
No credit checks
Anyone can get one
Work in exactly the same way as normal debit cards
Can only spend what is on the card so no going overdrawn
Ideal for Budgeting

The disadvantages of prepaid debit cards
Can have usage fees or a monthly charge
There may be a charge for issue

Prepaid debit card providers make their money from the fees which result from usage of the card.  This is why shopping around and picking the right prepaid debit card for you is essential.  Almost all prepaid debit card providers make a small charge for issuing the card, but beyond that, fees can vary wildly.   If you are intending to use your card regularly then a monthly fee debit card such as Cashplus may be the best choice.  For a fee of £4.95 a month there are no additional usage charges.  Alternatively you can choose one of the pay as you go cards which attract a small fee of 50p or so each time they are used.

For more information on UK prepaid debit cards visit Get a Debit Card.co.uk.  You can see a currently list of prepaid debit cards together with a comparison charge on their fees and charges,

Provident Personal Credit, one of the countries biggest door to door lenders, are facing an unwelcome backlash from their agents who accuse the loan giant of treating them unfairly.  Scores of unhappy agents have complained about their working practice on a website which has been set up for them to voice their concerns.

Amongst the issues which have been raised is an unfair system of fines which are imposed if an agent is unable to meet targets, pressure to collect outstanding debts and to bring old defaulting customers back into the fold, difficulties with management and a whole host of other serious issues and failures which are adversely affecting morale amongst Provident Agents.

The website “Agents Say No” is designed to allow agents to express their concerns with the company freely and anonymously with each other.  One former agent, Dean Lacey had his contract terminated when he tried to set up an Agents Association for Provident Agents.

For a company who apparently apply “the personal touch” to  credit, Provident certainly seem to have alienated a large chunk of its workforce.  The question must be asked – if a company treats its workers like this – how badly does it treat its customers ?

Shopacheck are a doorstep lending company who specialise in lending money to people who may have been turned down elsewhere.  Doorstep loans are cash loans with weekly repayments which are collected direct from your door – hence the name.  Loans are repaid over a period of 31 – 52 weeks and as payments are fixed each week, you always know where you stand financially.

Shopacheck are an established name in household finance and have been helping individuals to get the money they need for over 70 years.  They operate throughout the UK with a network of friendly local agents, who administer the loans and collect the repayments each week.  Shopacheck loans are convenient and available to many people who have bad credit, CCJs or other reasons for being turned down by banks and other lenders.

Shopacheck lend up to £500 and applying for a loan is quick and can be done online.  All you need to do is fill in the simple form on the website and you will be given an instant decision in principle on your loan.  Then your local agent will arrange a convenient time to come and see you and pay the loan – you dont need any security or any deposit.  Weekly repayments are arranged to suit your budget, and you dont even need a bank account.  So long as you can prove you are who you say you are then Shopacheck can lend to you.

If you think a loan from Shopacheck may be of interest to you, visit their website and find out more

We have recently encountered multiple complaints regarding unauthorised debit card payments made to customers’ accounts from a loan company called EPM your-money-tv.  The company also bills itself as Power Money Biz.  Firstly, we would like to point out we have never worked with this company; we do not work with companies who charge customers fees for arranging a loan.  We find such arrangements unethical, particularly as some of the customers who were duped into using this service did not fit any of the criteria for being accepted for a loan anyway.

The issue first came to light when numerous customers found that amounts of between £60 and £80 had been taken from their debit cards billed as either EPM your-money.tv or Power-Money.biz.  These domain names are registered to a mailing address in London – London. 1 Liverpool Street, London, EC2M 7QD.  The telephone number listed is 0844 704 9707.  The customers had no recollection of agreeing to pay such amounts and the debits caused severe financial difficulties for many people, particularly people on very low incomes and benefits.

When we checked into this we can across a company called Power Money Biz who on first glance appear to offer no credit check loans for people with bad credit.   A further delve into the site revealed that this is in fact a “membership site” for people who want to get a loan – and there is no guarantee that customers will be accepted for finance.  In short, this is a loan broker using dirty tactics to dupe people into paying £69.95 in the hope they will be accepted for a loan.  The fee which is debited represents the “membership fee” which is taken 14 days after customers have filled in an application form, just enough time for a customer not to be able to connect the loan application with the debit card transaction.   For customers who have not read the small print by proceeding with the application form they have unwittingly agreed to pay the membership fee, which is not clearly obvious on the site.

Power Money Biz claim that they can always help people to get a loan. What they omit to point out is that some of these loans are guarantor loans which virtually everyone can get anyway.  It gives people false hope that they will be accepted for a loan, particularly people at their most financially vulnerable.  Some people are only requiring loans for £100 and they are charged £69 for the privilege.  It would be laughable if it wasn’t so despicable.

For any customer who has fallen prey to these charges, the first port of call should be the bank.  Explain that the transaction was unauthorized and in most cases the bank should be happy to refund the money. Next, take a look at the Direct.gov consumer advice site http://www.direct.gov.uk/en/Governmentcitizensandrights/Consumerrights/Howtocomplainaboutgoodsandservices/index.htm which shows how to complain about the company.

Legitimate loan brokers do not charge customers directly; their commissions are paid by the finance company that they introduce the customer to.  When dealing with all things financial, if it sounds too good to be true, it usually is.

I recently came across an article by a licensed claims management agent detailing how to scam the  payday loan conpany Payday Express.  He was advocating people cancel their debit cards to avoid repaying payday loan companies with little regard to how this may affect the applicants future credit.  He went on to detail a scam in which people would repay only 30% of the debt owed to the payday loan company.  Not only is this ethically and morally wrong, but a dangerous game which leaves applicants open to allegations of fraud -and possibly even a criminal record.

Payday loans are designed to be short term loans repayable on your next payday.  Before issuing a payday loan the company considers the applicants ability to repay the debt on the day promised.  The amount of interest which is charged and any other charges are clearly laid out.  If there is doubt as to the applicants ability to repay the debt then the loan will not be issued.  Of course circumstances change, and there is always the potential for the applicant to be unable to meet the repayment when it arises.  Payday loan companies understand this.  If you cannot afford to repay a payday loan work with the lender to come to a resolution, most lendefs are happy to help and will reduce charges or payments accordingly.

The article suggested telling Payday Express you had been made unemployed and offering to pay back 30% of the amount borrowed, reasoning that Payday Express wouldnt be able to take any further action.  This again is wrong, Payday Express can not only pursue the case through the courts if they wish, but also the matter will be reported on your credit record. If you are found to have deliberately lied about your circumstances to avoid paying your debts you could even end up in court.

This article angered me as Payday Express are amongst the most reasonable of all payday lenders if a customer has a problem.  Payday loan companies do charge high rates of interest but they provide  useful and necessary service for many people who cannot get money from other sources or borrow it from banks.  Abusing the system will ultmately lead to even higher interest rates for everyone.

Need a fast, easy Payday Loan?   Quid Til Payday are our newest payday lender and can lend between £80 and £750.  Any credit type is accepted so dont worry if you credit is bad or you have CCJ’s, Quid Til Payday can still help.

Apply online in just five minutes with a simple one page form.  Funding can be in your bank account in as little as one hour.

Representative example: Borrow £225 for 29 days.The total charge for credit is £67.50. Interest is fixed at a rate of 377.8% p.a. The Total Amount Repayable is 1 payment of £292.50.

Apply Now Online

If you have bad credit, getting a loan to buy a new car can be tricky.  However, new lender Moneybarn specialise in providing low cost car finance for people with bad credit.  Even if you have been refused credit for a car elsewhere, Moneybarn can probably help. They can assist you with bad credit card finance even if you have bad credit, arrears, CCJs, an IVA or are a discharged bankrupt.

You can borrow between £5000 and £25,000.   You can purchase your car from any dealer, and Moneybarn will finance most car purchases.   However the car you want to buy must be less than 7 years old with 70,000 miles or less on the clock.    The vehicle must not be a commerical vehicle, left hand drive or import.

Moneybarn can help over 90% of applicants making them one of the highest acceptance rate car finance companies around.  Because they take into account much more than your credit score, including any part exchange you may have,  then they can help a wide range of applicants.

A Fast Service
You can apply online, and your application will be dealt with in one working day.  Often the company can pay out in as little as 24 hours so you could be driving your new car quicker than you think.   All you need is a copy of your valid UK passport, valid UK driving licence (both parts) and 2 months consecutive personal bank statements or payslips showing your income.

Do I need a Deposit?
You may have to find a deposit depending on the car you wish to finance.  In many cases your existing vehicle can be used as part exchange in lieu of a deposit.

What is the Criteria for Getting  a Loan
All applicants to be at least 21 years old, hold a valid British passport, hold a valid British driving licence, be in employment or self employment, have a bank account that accepts direct debits and live in England, Scotland or Wales

Apply Now for Bad Credit Car Finance