Three million turn to payday loans after being snubbed by banks
Yahoo, 11 Dec 2013
Some critics say providers are relying too heavily on a person’s credit rating to assess applications, meaning that people who are perfectly able to repay money are being declined.
Even if they have never defaulted on payments, people can have a very low credit rating. Perhaps because they have never had any form of credit before or because they haven’t registered on electoral roll.
“Banks are meant to be doing everything they can to offer credit to individuals and small businesses that need it, but the situation only seems to be getting worse rather than better. They’re letting consumers down by heavily basing their decision on an individual’s credit score,” said James Benamor, founder of Amigo Loans, which provides credit to individuals with a guarantor – not based on a person’s credit rating.
“If you need access to credit and are turned down by your bank, it’s vital to remember that there are other options out there and struggling Brits shouldn’t find themselves being forced down the payday route,” he added.
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