Falling Confidence in Major Banks Spurring Boom in Payday Loan Applications
August 31, 2012 (PRLEAP.COM) Business NewsConsumer watchdogs now estimate that up 1.2 million Brits are turning to payday loans every year – a figure Payday-Loans UK states is still on the up.
Payday lending has become a billion pound industry in the course of just a few short years and while critics continue to advise the public not to trust short term loan providers, it seems confidence and trust is in fact waning in other areas.
Has the Great British public finally had enough of being fleeced by High Street banks?
What has so far made 2012 a unique and significant year in the payday loans industry is the way in which the usual application upticks and droughts have been relatively minor. While it is normally expected that applicants in their thousands will flock to the doors of short term loan lenders over Christmas and during the summer, the months in-between have seen largely equal numbers seeking payday loans.
Needless to say, it is being seen as no coincidence that this has come about at the exact same time that average UK credit card interest rates are among the highest in over a decade and personal loans are also hovering at a ten-year high.
Greg Todstall explains;
"While it continues to be the online payday loans industry that is tarred with the 'criminal' brush when it comes to fees and charges, it has been conclusively proven that major lenders are in so many instances taking things to all-new heights. In fact, make the mistake of going slightly overdrawn with any number of major lenders and the instant penalty fees, interest rate hikes and daily charges can see a loyal customer being hit with what is essentially and APR massively higher than that of any payday loan on the market today."
"It is also getting the point where consumers are becoming terrified to tempt fate when it comes to their all-important credit scores and are thus seeking payday loans as a stress-free alternative. There are so many ways and means by which a major bank or lender has the power to destroy a person's credit rating in a heartbeat it's again little wonder why most are looked on these days with a distinct sense of dread."
According to the most recent data gathered this summer, a depressing 63% of the UK consumer public feels it cannot trust High Street banks and building societies.
The big name brands may continue doing their level best to sour the name of the payday loans online lenders, but at present their own behaviour is doing little other than drive consumers away from their own ranks in record numbers.
Payday-LoansUK.org.uk is a comprehensive online resource offering access to thousands of uniquely tailored short-term financial solutions for UK consumers. When handled appropriately, payday loans are a proven means by which to make considerable savings compared to what are considered the 'conventional' alternative options.