Payday loans – A rarity in a world of little faith?

Published: 25/10/2018 and written by Patrick Smith

Weak Economic Growth Means Increase in Interest Rates Unlikely
You don’t have to look online for long to find the latest article on payday loans and how they’re supposedly exploiting vulnerable borrowers with high rates of interest and unrealistic repayment terms that are almost impossible for borrowers to keep up with.

The issues facing the industry now are to an extent the result of some lenders in the past who have perhaps operated in a fashion that does the industry no favours moving forward. That said, there are many lenders that see responsible lending as their duty in providing a credible product offering. Here at Mr Lender we see ourselves as the latter, and we’d like to think that our customers would agree with us.

It’s all about transparency

Regardless of the product or service on offer, there is always the need to provide the customer with the right level of information, so they can buy with confidence. As a lender we therefore have specific obligations and responsibilities to deliver that trust. Treating them fairly, providing adequate information along with a safe and secure online environment for application processing are just a few of the ways we try and achieve that here at Mr Lender. Not to mention the fact that we do our very best to make it clear to our customers that our products should be used for short-term financial needs and not long-term borrowing.

That’s another reason why we still to this day insist on having a human aspect to our loan approval process. With many credit options now available online at only the click of a few buttons, without the need to speak to a single person, it’s perhaps surprising to know that at Mr Lender all our applications are reviewed by our team of advisors. Before a decision is made, careful checks are conducted which consider a customer’s circumstances to find out whether the loan is suitable.

Responsible Lending

There’s also a responsibility for lenders like us to ensure that customers fully understand the terms of their loan agreement. For example, not everyone knows what an APR rate is. Not everyone knows the affect a loan may have on their credit history. Not everyone knows the repercussions if they struggle to repay their loan. But as lenders we do know, and we have a duty to communicate that information.

This is probably the reason why our customers rate us so highly. It isn’t a fluke that 98% of customers recommend us on reviews.co.uk, and our latest Trustpilot rating is 9.6 out of 10. This alone is testimony to the importance of lenders like us providing customers with a high quality, transparent and professional service.

It’s also why Mr Lender has one of the lowest levels of Financial Ombudsman complaints within the industry, and an even lower number of cases upheld*. It’s something we’re proud of as a company, but at the same time always looking to improve upon.

So, If you have any questions about short term and Instalment loans, then we hope you have the confidence to give our team a call or visit us online.

 

*Based on Financial Ombudsman Service H1 2018 complaints data

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