Exactly what are payday advances?
Pay day loans are a kind of borrowing called “high-cost, short-term credit”. You borrow between ВЈ50 and ВЈ1000 and spend the loan back with interest, in one single re payment on or soon after your following payday. This sort of borrowing is commonly higher priced than several other forms of credit.
There are some other kinds of short-term financing, including:
- instalment loans вЂ“ payments are spread monthly or weekly over several repayments, typically between three and a year
- вЂrunning creditвЂ™ or вЂflex creditвЂ™ вЂ“ the way in which this works is comparable to a bank overdraft, borrowers and offered a ‘limit’ that they’ll set up to as an once they have to, provided they spend at the least the interest off every month. This type of credit is expensive and intended for short term use only while the credit agreement has not fixed end date.
Forms of complaints we come across
We have complaints from customers who inform us that loan providers:
- lent them cash without checking they could manage it, now they’ve plenty of additional interest and costs which they can not spend
- had been unreasonable or unfair whenever their situation that is financial changed
- were not clear about whenever re re payments had been due