New Payday Loan Companies
Payday lending has become a genuine alternative to traditional lending such as credit cards, overdrafts and loans. When Wonga introduced their short term loan product back in 2007, a revolution in short term finance began. Since then 100’s of lenders have entered the industry. However, for a period of time many lenders were exploiting the fairly unregulated system and this has led to big changes in the industry. This came in the form of a new regulator, the Financial Conduct Authority (FCA).
The changes led to a large number of payday loan companies leaving the market. However, it also led a number of new payday loan companies entering the market. The new rules set out by the Financial Conduct Authority are very straightforward and it meant that new companies could enter the market with the right mindset of treating customers fairly. Some important rules for payday loan companies set out by the Financial Conduct Authority are:
- Initial cost cap of 0.8% per day - For all high-cost short-term credit loans, interest and fees must not exceed 0.8% per day of the amount borrowed.
- Fixed default fees capped at £15 - If borrowers do not repay their loans on time, default charges must not exceed £15. Interest on unpaid balances and default charges must not exceed the initial rate.
- Total cost cap of 100% - Borrowers must never have to pay back more in fees and interest than the amount borrowed.
PiggyBank entered the payday lending industry in 2012 with a fresh approach to lending. We only wanted to lend money to people we felt were affordable, not suffering from financial difficulty and who we believed could repay their loans. We have continued this approach and we are always looking at ways we can further enhance our customers experience.
Traditional payday lenders, would lend for a month or until you next got paid. With the changes to the rules, many of the new payday loan companies and some of the more established ones now lend to customers up to a period of 12 months or longer. This leads to a wide range of choices for customers and therefore you have the choice of choosing a lender that treats you fairly, adheres to all the FCA rules and guidelines and delivers positive outcomes for you.
Why Choose Us?
- Direct Lender
- No Payout Fee
- No Hidden Costs
- Fast Online Application
- Multiple Repayment Options
- 100% UK Based
- Fully Authorised by the Financial Conduct Authority