Top 20 Payday Loan Lenderstop 20 payday loan lenders
Everybody it seems has a shocking tale about payday loan. The payday loan business has had enough of hearing such tales and is being denounced by parliamentarians, locals, newspapers and even the Archbishop of Canterbury and is now struggling to enhance its name. For the first in its 13-year long record, the largest payday financier on the High Street consented to grant the BBC branch office right of use.
So far, The Money Store has been refusing to allow journalists to see their clients or follow the credit proces. That' s why my cabbie takes me to Bullwell, a borough of Nottingham, where The Money Store has two of its 575 stores. Shops - flat glasses and gaudy yellows - look out over the High Street for the whole globe, as if it were a shining new subsidiary of a banking establishment.
However, are the credits offered here with a typically annual percentage rate of 3.000% really the bad they are thought to be? Beyond him is Damien McGlinchey, a 27-year-old nursing assistant who has looked in to repay his loan of 280 pounds, which was intended for a slightly more reckless use.
" What all clients have in common, however, is discontent with the bank. "Chris Riley says the bank won't help." Money Shop shoppers are paying 29. 99 to lend 100 pounds for a whole months. They also warn that if clients cannot obtain a loan through a payday creditor, they are likely to turn to non-regulated lenders.
It says those kind of guys who "operate under the radar" are the true ones. Money Shop's rates are lower than its competitor Wonga's, which charged 37.15 to lend 100 pounds for a whole months, but much more than a traditional cooperative. Some of them, such as the London Mutual Credit Unions (LMCU), grant payday credits.
Such a loan will cost you £11 plus 2 in the form of a £2 subscription. Says Jane Simonds, from MM Advice Service, that when you need to lend someone a loan, a cooperative is a good place to do it. "There is a limit on the amount of interest they can calculate on their credits of 2% per months or 26.
"Yet some cooperative societies are insisting that you first cut them some slack before they let you take out a loan. Bankers are reluctant to take out payday credits, and few individuals have direct recourse to them. Another six lenders have either retired on a voluntary basis or had their licenses cancelled by the OFT.
This has still resulted in sound earnings, but less than half of the earnings of competitor Wonga, which recently posted an £84.5 million profit for the year. "We' re offering our clients a service," she says.