Payday Loans Force the Hand of Unemployed
Press Release - 24 July 2012
The Consumer Credit Counselling Service (CCCS) has announced that the pit-holes of payday loans are forcing jobless Britons into unmanageable debt.
With no regulation in place to stop a lender offering a short-term, high-interest loan to the unemployed without affordability checks, many borrowers are left in a downward spiral of debt, unable to repay the huge interest rates applied to payday loans.
As banks continue to clamp down on lending, payday loans can seem the only option available in times of financial need, but now consumers need to be even more cautious about the financial products they choose and understand there are other options available to them.
Amigo Loans founder and CEO, James Benamor, says:
The threat of payday loans for millions of people continues to grow. Irresponsible lenders are failing to consult borrowers adequately. With many trust-worthy people locked out of the banking system, payday loans are often thought to be the only option available. But without stringent affordability checks, these lenders are acting irresponsibly. Consumers need to be aware there are cheaper and safer options beyond payday.
While there are often genuine reasons why people need to borrow quickly, using payday loans could cause serious problems in the future for millions of consumers. Amigo Loans, based on the guarantor loans model, lends flexibly at 100th of the APR of some payday lenders, without relying on the credit scoring system. All customers speak to a loan adviser who carries out a detailed affordability consultation.