Payday loans families face a life of debt

HARD-UP families are being condemned to a life of debt after taking out loans they can never hope to repay.

Two thirds of people who took out a payday loan said no basic checks on their finances were carried out.

This led to nearly 50 per cent being unable to pay back the cash.

The Citizens Advice study laid bare how payday loan companies are locking thousands of Brits into a vicious spiral of debt — with many claiming to have been “hounded” after borrowing the money.

The survey discovered six in seven firms did not offer to freeze interest and charges after the borrower agreed repayments.

Seven out of ten didn’t explain how much it would cost to extend the loan.

And 84 per cent did not treat the customer sympathetically, according to feedback from 1,270 people who took out loans from 87 different firms.

One customer who paid £57 a month on a £500 loan stil owed £437 after six months. Others who struck a repayment plan found their bank account still raided on a daily basis by the lender.

And one man told how, a year after taking out a payday loan, he is still dependent on them as paying back the cash ate into his wages so much he needed another loan.

Citizens Advice chief Gillian Guy said: “The knock-on effect of their irresponsible lending is devastating for families.

“Many find they have no money to put food on the table, pay bills or get to work as lenders drain their bank account.”

Citizens Advice has seen a ten-fold increase in people seeking help about payday loans in the past four years.

10 top tips when it comes to payday loans

YET more Scots are expected to take out risky payday loans over the coming months as the government’s latest austerity measures bite, even as the consumer watchdog cracks down on a sector it deemed guilty of “widespread irresponsible lending”. Ideally, payday loans would be avoided altogether. But with many Scots resorting to them in a bid to ease financial pressures Sharon Bell, head of StepChange Debt Charity Scotland, shares her top tips on how to avoid being caught out. DON’T DO IT This is the simple answer. Going to a payday loan lender may seem like an easy solution to a pressing problem, but watch out – they can carry interest rates well over 2,500 per cent APR (the annual interest rate). If you cannot repay it fast and in full, your debt problems can easily spiral. If you do manage to repay it, you may then not have enough to live on until next payday. Avoid thinking it would be sensible to take out another loan – you may become reliant on them and your situation will get worse. LOOK ELSEWHERE Consider your alternatives. What about friends or family? Have you worked out a budget based on your income and what you spend each month? Can you make savings? Exactly how much unsecured debt do you have? Have you anything to sell? Can you boost your earnings? Are you receiving the correct benefits? Facing up to these details is a crucial part of understanding your finances. If you really feel there is no alternative to a payday loan, take a moment to talk it over with a free debt adviser before you do. READ THE CONTRACT Know what you are signing up for and understand that a payday loan is meant to be temporary. Unlike a short term loan from a bank, it will accrue massive interest if you don’t repay it promptly. Also know that lenders will usually request you tick the box for continuous payment authority (CPA), giving them permission to take payments from your debit card bank account, even if the funds aren’t there. Make sure you agree the payment amount and how often it’s taken. If you can, use a direct debit, standing order or even opt to pay manually by cash or cheque. CHARGES If you can’t repay the loan on time you will be charged extra to extend it. Interest will also be charged until it is repaid. The lender will keep trying to take payments from your account, even if you’ve said you can’t afford it, and your bank is likely to charge you too if there isn’t enough money in your account. If you’ve agreed to pay by cheque and it bounces, you will be charged by your lender and your bank. HELP Get help quickly if you have debt worries. Almost half of those who ask StepChange for advice wait over a year between realising they have a problem and seeking help, while 35 per cent keep their problems secret from family and friends. No matter how serious your debt is, know that you are not unique and help is available free from StepChange Debt Charity by calling 0800 138 1111. STOP IT If you know that you can’t meet a repayment, cancel it before the lender takes it. This is trickier with CPAs than direct debits, but it can be done by contacting both the lender and your bank. If you are unsure how to go about it, use the template letter at www.moneyaware.co.uk NOW WHAT? Once you’ve stopped the payday loan or text loan company from taking a payment you need to start thinking about alternative ways of paying the debt. A debt adviser can help by setting out a budget, showing what you can afford to pay towards your debts. They will also be able to give you advice on how to deal with them. INSTALMENTS? If you’ve not got the money to repay the loan in a lump sum the only remaining option is to pay back in instalments. Ultimately it’s down to the lender what it might accept, but if it knows you’ve had debt advice and you’re offering a reasonable amount based on your budget, there is a good chance of getting something agreed. If it agrees to accept lower payments it’ll usually – but not always – lower or freeze interest and charges. ROLLOVER (AND OUT) Think about it – “rolling over” the loan or taking out a new one means it will have to be big enough to cover the amount you originally borrowed, plus the interest of the first loan, and you will have new interest added on top. This can start a vicious cycle of snowballing problem debt. So STOP, and get free debt advice on your options. SPEND WHAT YOU HAVE Living without a budget is like walking around blindfolded – sooner or later you’ll hit a wall. The first step to reining in your spending is to write down your income and outgoings. But don’t be too hard on yourself if it seems too much – you’re now aware of what you’re spending and can take better control of it.

payday loans

From time to time most of us will find ourselves short of cash and may need to seek out some financial help until payday arrives. In today's economic climate, with rising prices and wages not keeping up with inflation many of us are finding it more and more difficult to make our wages stretch to the end of the month. Many people are seeking payday loans to fill this financial gap. With lenders giving access to easy credit in the past and people finding themselves in debt as they could not manage repayments, lending responsibly has become paramount with lenders pledging to not lend money to people whose financial situation is not suitable, or encouraging people to borrow more than they can afford to pay back. Lenders are also obliged to lend responsibly through the banking code which is a self-governed set of rules which ensures they do not lend to unsuitable customers who are likely to get into debt. It also includes a responsibility to treat customers appropriately and make sure their financial situation does not get worse as a result of further lending. Part of lending responsibly is to carry out adequate credit checks before authorising a loan. Getting a loan can seem too easy with the convenience of text loans but lenders must still carry out some basic credit checks first. They may not be as thorough for payday loans as they would be for another type of loan but nevertheless, certain criteria are still checked before lending. They will check your credit history, a record of previous and current lending, previously denied applications and your historical ability to repay debt. It will highlight any history of bankruptcy and ensure your application is genuine. These checks can be quick and you could have authorisation for a loan within a day or even sooner. The reasoning behind these checks is to ensure the safety of both the creditor and the lender. It should provide a level of certainty that the creditor will get paid and the lender will be able to manage the repayment schedule without getting into financial difficulty. If you are applying for a payday loan you should be aware that this type of loan is not suitable for long-term borrowing. If you require money over a longer period you should investigate other types of lending as a payday loan is only suitable for short periods as interest rates and repayment terms are different to that of a credit card or fixed term bank loan for example. If you have a bad credit rating you may be refused, or if the creditor considers you eligible but high risk you may still be able to borrow, but just for a smaller amount to make sure you are able to meet the repayments. Before you take out a loan make sure the loan provider has given you clear and complete information on the terms and conditions of the loan. The APR and any charges should be clearly highlighted so the customer does not face any nasty surprises. Stating the terms and conditions clearly also helps the customer compare loans so they can find the one that suits them best.

Text Loans

Text loans are becoming an increasingly popular way of overcoming short term financial difficulties for thousands of people in the UK. There are now numerous lenders available online who are willing to loan small amounts of cash (£100-£500) over a fixed period of between 7 and 30 days.

All text loans will still require an initial online application completing and possibly certain documents faxing to the loan provider to verify some or all of the details. Once accepted, the client will then receive their money by bank transfer, directly into their nominated bank account.

At the same time they will also be issued with a unique PIN number which can be used in the future for the purpose of applying for additional loans. One simple text message quoting the PIN number and the amount required will then generate an almost instant payment into the client’s bank.

As with all financial transactions, honesty is the best policy; reputable loan providers want to be able to help on a short term basis, not lend money to clients who cannot pay it back. The initial application should be filled in accurately, honestly and without omissions.

The main aims of the application from the lender’s point of view is proving the client’s identity as well as confirming the existence of a bank account and proof of income. This is the reason, some lenders will also require certain documents faxing to them, to corroborate the information contained in the application.

Generally speaking, text loan lenders have certain requirements of their potential clients:

• Must be 18 years old or over

• Able to prove an income of at least £400 per month from employment or self-employment

• Have a UK bank account in their name capable of handling Direct Debit transactions

• Not have been made bankrupt or have County Court Judgments (CCJs)

Applicants who fall outside of these parameters are likely to be rejected by any reputable lender, but requirements do vary from lender to lender.

Some lenders have additional reasons for refusing clients, not lending to students for example, whilst others are slightly more accommodating and will even lend to unemployed clients provided that they are receiving sufficient income from benefits to afford repayment.

Text loans do tend to generate a very high APR (Annual Percentage Rate). This is because they are considered ‘high risk’ and are not intended as anything but a short term solution offered for a maximum of 30 days.

Although text loan providers are required by law to clearly state their APR, they will often show an example of the cost of borrowing from them as well e.g. a £100.00 loan, repayable after 7 days would incur an interest charge of £10.00.

Text loans should never be considered as a long term financial solution and careful thought should be given before taking one out. If the repayment is not made on the due date, the financial penalties are very high and future borrowing may be refused or restricted.

Short Term Loan

Emergency financial needs can arise at any time for an individual. Many people tend to seek the assistance of a short term loan in that kind of a situation. Short term loans can be considered as an ideal way to find money within a short period of time with less hassle. When you go for a short term loan, you won’t have to pay a lot of fees back, like in long term loans. When you drag the loan for a long period of time, you will have to pay a large amount of money. Even though the rates of short term loans are higher than long term loans, you will not have to pay a bigger amount like in a long term loan because you will settle the full amount within a short period of time. That can be considered as the main reason behind the popularity of short term loans. When you go for a short term loan, you will get the opportunity to receive money within a short period of time. Most of the people who borrow short term loans pay them back during the next pay day. Therefore they are also known as payday loans. Payday loans and text loans are borrowed to pay for something that happens before a warning like an emergency hospital bill. Short term loans are ideal for a situation like that and you can get the money to your hand within a day. However, you should fulfill some criteria in order to be eligible for a payday loan. You must be at least 18 years of age and you should have a regular source of income. You don’t have to worry about your bad credit rating to obtain a short term loan. You can fill up the application and submit it to the payday loan lender and they will lend you the money right away. Therefore some people even use short term loans to build up their bad credit rating. You can even change the repayment amount and the date for your convenience. Payday loan lenders will display the repayment amount when you go to obtain a short term loan. Therefore you will be able to have an idea about the amount you have to pay back while obtaining the loan. The payday loan lenders offer the money in a secure way and they will protect your identity as well. After submitting the application, you will be able to get the money to your bank account within half an hour. Therefore you can go for a payday loan during an emergency money requirement without thinking twice. You can pay back the amount within 8 to 20 days and that time period will differ from lender to lender. Cash loans are ideal for any person to find money during an emergency without going for debt. If you are looking to obtain a payday loan with less hassle, you can do some research on the Internet and find a good lender.

Advantages Of Pay day Loans

With the current economic climate the way that it is, it can be hard to keep on top of the bills, and even harder when unexpected costs appear. Not everybody has someone that they can lend money from and not everybody wants to borrow cash either. However, if you do need some extra cash then you have to find it from somewhere. One option that is becoming more and more popular is the payday loan, and while these have got plenty of bad press, they also have their advantages. What are the advantages? Taking out a loan can seem scary, but with a payday loan it isnt all bad. Can get the money fast With a payday loan you can get hold of the money quickly, in most cases this can mean as quickly as the next day.This is great if your looking for a short term loan This means that these options are great if you need the money in a hurry or if it is an unexpected expense as the money can be available to you instantly. Available to everyone Payday loans are available to everyone as long as you are over 18, a UK citizen and have a bank account. Even if you have been declared bankrupt in the past or have a bad credit history, you will not be refused for a payday loan whereas you may be refused for other larger loans. This means that if you really need the money, you dont have to worry that you wont be able to get it. It really is one of the great advantages offered by this type of loan. Only loan small amounts With payday loans, you can only borrow relatively small amounts of money, with many payday loan companies putting an upper limit on how much you can borrow. This may not sound like an advantage if you need a large sum of money, but these limits mean that you shouldnt be able to borrow much more money than you can pay back, ensuring that while you still get the money that you need, you arent going to get into hundreds of thousands of pounds worth of debt as part of the process either. Although payday loans have their critics, they can also be seen to have some massive advantages too. If you end up in a pickle and need to borrow money quickly and easily, they give you another option besides having to ask a family member and ensure that you get the money that you need. While many people dislike the idea of taking out a loan, payday loans really are a bit different and can really be a godsend to those that are in need of money quickly.

Short Term Loans

Payday loans are a great solution if you're looking for a quick cash injection, many people use payday loans as they are quicker than obtaining a bank loan.

There are a few reasons why many people use wage advance loans, maybe the person looking to obtain a loan has bad credit and a main stream lender won't lend them the money or friends and family simply don't have a bit of extra cash to lend you.
It is an easy process in order to obtain a loan, you will first need to find a suitable payday loan lender these can be found with a quick search on the internet, make sure you shop around and look for different lenders as most lenders charge different fees but the average charge is around £20 per £100 borrowed.

Once you have located your preferred lender you will then need to fill in a application form this is all done online so it will save you time especially if you need the money in a hurry.

When you have completed the application you will normally receive a phone call from the loan company this will be just a quick check to verify all the information you have input in to your application form. Once this has been checked you can expect the loan amount to be in your bank account within just a few hours.

In order to be eligible to receive a loan there is a criteria which needs to be met.

You must be over the age of 18 and living in the United Kingdom
Must be in employment this can be either part time, full time or self-employed.
You will need to have a bank account that accepts direct debits; this is because the lender will take the money back you owe them via direct debit.

If you have met the above criteria chances are you will be able to get a loan. The only advice I can offer anyone thinking about getting a loan is remember they are designed for short term use only one or two months at the maximum, if you need a longer loan then these types of loans are not best suited to you.

OFFICE OF FAIR TRADING TARGETS PAYDAY LOAN SHARKS

The OFT has told payday loan companies they will lose their licenses unless they stop handing out cash 'irresponsibly' Some 50 payday loan companies, amounting to 90% of the industry, have been given 12 weeks to tighten up their lending practices or face closure. The Office of Fair Trading has also promised to refer the payday lending market to the Competition Commission, after uncovering 'deep-rooted' problems in how lenders compete against one another. The Big Issue has long campaigned against these companies, who lend cash at exorbitant rates of interest to people who are ill-placed to repay the debt. In December, financial expert Martin Lewis, founder of the website moneysavingexpert.com, told our readers they would be better off 'cancelling Christmas' than taking out a pay day loan. Clive Maxwell, OFT Chief Executive, said: 'We have found fundamental problems with the way the payday market works and widespread breaches of the law and regulations, causing misery and hardship for many borrowers. Payday lenders are earning up to half their revenue not from one-off loans, but from rolled over or re-financed deals where unexpected costs can rapidly mount up. 'We are proposing to refer this market to the Competition Commission, which has wider powers to get to the heart of the problems in this market and to identify and impose lasting solutions that protect consumers.’ 'Irresponsible lending is not confined to a few rogue payday lenders - it is a problem across the sector. If we do not see rapid, significant improvements by the 50 lenders we inspected they risk their licences being removed. Payday lending is a top enforcement priority for the OFT.' The OFT have identified the following problems with the payday loans sector: - The targeting of customers with 'limited alternative sources of credit and are frequently in a vulnerable financial position'. In other words, people who have no cash and won't be able to pay back the huge interest. - Huge interest rates that make the problem of 'irresponsible lending particularly acute'. - Using advertising materials that emphasize how easy it is to get a loan rather than the actual cost of taking one out. - Relying heavily on the refinancing of loans, meaning that people borrow more money to pay the cash they already owe. Although the payments are described as one-off short term loans, which cost an average of £25 per £100 for 30 days, up to half of the companies' revenue comes from longer loans which are refinanced. Credit campaigners have praised the OFT’s actions. Michelle Highman, chief executive of Credit Action said: 'The OFT provides detailed guidance on irresponsible lending and debt collection practices – if firms don’t comply with the regulator, they should expect to face the consequences. The industry and its trade associations need to act immediately to address the issues raised.” Financial expert Martin Lewis, founder of the website moneysavingexpert.com, had this warning for anyone thinking of taking out a payday loan: 'You would be better cancelling Christmas than taking out a payday loan. It’s time for the UK to go cold turkey on bad debt. 'Other countries like the US have hardcore regulations. We don’t. It’s easy for irresponsible companies to come here and pump out easy credit. You have debt pimps who have shops out on the high street, trying to entice people to borrow. It’s impulse-driven, which is the genius of how they operate.' 'It’s a wonderful business founded on excellent technology and limited morality. Lenders almost don’t want you to pay them back. They rollover debt so you borrow to pay off loans, sometimes going to another company to pay off the first lender. They don’t put marks on your credit rating, meaning responsible lending is more or less impossible. More and more people borrow £100 and end up owing thousands. I used to say store cards were the devil’s debt, at 30 per cent APR. This is way beyond that.'

Why I Got A Payday Loan

As new research reveals that 3.5 million adults are considering taking out a payday loan in the next six months, personal finance journalist Naphtalia Loderick explains why she took a payday loan herself. Payday loans receive a bad press but new research by insolvency trade body R3 reveals that 3.5 million adults are considering taking out a payday loan over the next six months. R3's research also shows that of those sampled who had taken a payday loan, 60 per cent regret the decision and 48 per cent believe the loan has made their financial situation worse. Only 13 per cent believe the payday loan had a positive impact on their finances. But if you are looking for a short term cash boost then it could be right for you. As it was for me. Why I took a payday loan This September, after two holidays and a lot of birthday celebrations, I had too much month left at the end of my money. I knew there was no point approaching my bank for a temporary overdraft – despite having banked with them for more than 16 years and earning a relatively good salary anytime I have asked them for a temporary loan, invariably, the computer says no. And I knew my friends and family couldn’t help – everyone is pretty strapped for cash these days. So I ventured into The Money Shop on my local high-street. I brought proof of address with me and a recent bank statement. A few minutes later I walked out with £100 cash. Interest rates Yes, the interest rates on payday loans appear extortionate, into the thousands. But I, probably like most people who take out payday loans, aren’t looking at the APR. We’re assessing the cost of borrowing in terms of cash you have to pay back. In my case, I borrowed £100 and had to pay back £125. I was happy to borrow on these easy-to-understand terms. I think many people taking and writing today about the scourge of payday loans forget there is a whole swathe of society who can’t borrow from the banks and don’t have credit cards. Loan sharks danger These are the people who often turn to payday loans. But I don’t think the answer is to ban payday lenders as this would leave a whole section of people potentially turning to loan sharks. Indeed, Consumer Minister Ed Davey recently said people turning to loan sharks is why he ruled out a cap on store card and credit card interest rates. But wait – I work, I have a regular salary, a bank account and a credit card. Yet mainstream lenders won’t even lend to me – even for a short time. I think people always think it’s only the poor who turn to payday lenders, but I think many more professionals like me do as well. Preying on the vulnerable However, I know that payday lenders aren’t perfect. After I had borrowed once, I was called a day or so before the £125 was due to be repaid to be told that I could extend my loan for another month and I could borrow up to £350. I know that payday lenders operate a business, but trying to get repeat custom by tempting vulnerable (because they are short of cash) borrowers into more debt is not right. The consumer watchdog Consumer Focus is rightly worried about the marketing practices of payday lenders and has called for a restriction on the number of loans borrowers can take out in a year to five. Consumer Focus has also, rightly I think, urged banks to do their part provide more short-term loans to cash-strapped customers.

Low On Cash What About A Payday Loan?

Irrespective of who you are or what you do in life, odds are excellent you possess faced hard monetary times. Should you be in this condition now and need assist, the following article will offer advice and tips regarding online payday loans. You must discover them very helpful. A knowledgeable choice is usually your best option! Desire a wide open connection channel with your lender. In case your payday loan lender causes it to be seem almost impossible to go over the loan using a person, you might stay in a negative organization deal. Respected firms don't run this way. They have an open line of interaction where you may ask questions, and receive feedback. Payday loans might be a lifeline for people who have poor credit who encounter an unexpected emergency condition. Nonetheless, payday cash loans ought not to be accustomed to shell out your standard month-to-month expenses or increase typical cashflow. Employing pay day loans persistently can cause adverse fiscal implications and getting caught within a period of attempting to capture up. Payday cash loans can be very tricky to know, particularly if have never considered a single out just before. However, getting a cash advance is much simpler for those who have removed on the web, carried out the correct examination and acquired what precisely these loans involve. Listed below, a listing of crucial assistance for payday advance buyers is listed. You now know the pros and cons of stepping into a payday advance purchase, you will be greater knowledgeable about what specific points should be considered prior to signing at the base series. When applied intelligently, this premises can be used to your benefit, consequently, usually do not be so speedy to discount the opportunity if emergency resources will be required. The amount of money you meet the criteria to borrow through a payday advance differs. It would vary depending primarily on your own earnings stage. Creditors will estimate how much cash that you simply earn and set a greatest volume that you simply be entitled to. This is very important to realize when you consider getting a cash advance to purchase one important thing or other. Those of you who are looking to obtain a cash advance could be wise to exhaust all the other alternatives before choosing to achieve this. Payday cash loans price an left arm as well as a lower body in curiosity and really should only be part of a last option. Look for an additional way to get some money initially.

Payday Loans Fast And Simple

Sleepless nights? Constant depression? Anger and frustration? If money worries are getting you down and affecting the quality of your life, then you are probably looking for a fast solution so you can give yourself a little bit of breathing space. Maybe you have heard of payday loans? In the past, these kind of loans could be a bit dodgy, and had a reputation of basically being scams. However, in recent years there have been a number of reputable and trustworthy companies taking the payday loan world by storm, who offer secure payday loans in a simple, fast and convenient manner. One of the companies at the forefront of this payday loan revolution are new payday lenders where you can fill out their easy application form and get a decision in minutes. Just imagine getting some cash into your bank account before tomorrow, wouldn’t this give you some peace of mind? Wouldn’t you sleep better tonight? Sure, it might not be a long term solution to your financial situation, but it’s certainly good enough to fill in a gap. Also, once you get a payday loan you will be able to think about things in a calmer and relaxed manner, and you might be surprised that this allows you to come up with a long term solution to your problem. At the end of the day, it can be hard to think straight when you are in a financial panic, which is why payday loans are such a good option to get you out of your current emotional state. The payday loan process Are you ready to get a payday loan? If so, then you must be in some form of employment, whether it be full or part time. Sure, it is possible to get a loan if you’re unemployed, but it’s usually a lot more difficult. Before filling out an application, it’s a good idea to know when your next pay date is from your employer, as well as some previous wage slips or proof of income. Also, it helps to have other forms of identification, such as a driving license or passport. Lastly, you will need to the details of your bank account, so you can receive your money in the shortest amount of time possible. Finally Payday loans are an excellent way to manage your short term finances. Just be aware that you can’t rely on them forever, so you should make it your top priority to make a plan and get your long term finances in order.

payday loan websites using dirty tricks to get customers via google.

Payday loan brokers have hacked other websites to increase their ranking on Google. A Sky News investigation has found that some payday loan brokers have benefitted from hacking into websites to divert the history and status of a legitimate business to their domain. This increases their ranking on Google, and the tactic has given unregulated brokers access to online traffic worth millions of pounds. The findings come as the Office of Fair Trading (OFT) prepares its report into dirty tricks in the market, due to be published in February. Every month, tens of thousands of potential customers use Google to search for payday loans. The search engine has a complex algorithm based on a website's history and credibility which tries to ensure that users are directed to the most appropriate websites. However, Google's natural listings system can be tricked. Sky News found three payday websites that were stealing the credibility of other websites to boost their ranking. The target victim sites included a music business, a graduate website and even a church website. In November last year, Sky News discovered established music licensing website Ricordi was one of several domains that began ranking highly for selling payday loans on the front pages of Google. Clicking on the link diverted the user to a payday broker's site. Dr Joseph Somerhalder says brokers have been 'stealing identities' Web analyst Dr Joseph Somerhalder from search optimisation company Chillicow explained what was happening. He told Sky News: "They hack into the website. They optimise the website for something that it is not about such as payday loans. Then they wait for the right moment, and then they forward all the history and all the credibility from the old website, the legitimate business, into the illegitimate business." He added: "It's a bit like stealing your identity online. They take the website's identity and history and they point it somewhere else." Ricordi is owned by Universal Music Group. A spokesperson for the company said: "We recently discovered the unauthorised access to our Ricordi UK website. UMG takes the protection of its sites very seriously and has implemented measures to prevent a recurrence of this type of event." But other companies may not be aware of the hacking. Using web analysis software, we found that over 10,000 websites have been compromised by this technique on one server alone. Sky News spoke to the owners of UK graduate website Gradfunding which was also in the process of being hijacked. Dr Luke Blaxill, director of the website, said he was also trying to deal with the problem. "To get rid of this we are going to have to rewrite every bit of code on the website and transfer it to a new server." The payday loan intrusion meant his company was starting to fall down the listings for its own business operations and it could lose years of building up an online reputation. Dr Blaxill said: "It has taken years for us to get to the position that we are in this particular market and for that effectively to be almost rewritten overnight by a scammer, is a real problem." Gradfunding was among the target victim websites Raihan Islam from JAR Applications, which fixed the problem for Gradfunding, told Sky News: "What they did was inject a malicious code into the web server, and the files trick Google by the method of cloaking. "They then bomb the site with payday loan links to increase its ranking for payday loans and redirect the traffic to their scam website. That's when the hacker starts making money." During the investigation we found church website Canada had been hacked for this purpose. We also discovered 21,000 payday loan links had been pointed at a Bonsai society website. There are concerns these tactics leave UK loan customers exposed to unscrupulous, unregulated brokers. Over the last two months Sky News conducted test searches on Google for payday loans which produced websites high in the natural listings that were in breach of OFT regulations. Several had no consumer credit licence, a requirement for any loan broker and lead generator. Some websites claimed to be 100% secure, but actually had no data protection when customers entered their bank details. This exposes customers to fraud and identity theft. We also found many websites broke legal requirements on transparency to customers, such as failing to prominently display a representative APR or an address where the company can be contacted. Sky News found three direct payday loan lenders involved in dirty tricks Some legitimate lenders in the industry have told us they are aware of the problem. Many of them advertise on Google's pay per-click service as an alternative to the natural listings. One lender who did not want to be identified suggested the price of Google's sponsored links have gone up because demand has increased with legitimate companies struggling to get on the natural listings. "Google could solve this problem by tightening up their algorithm" he suggested. "But they have no incentive to do so. We're all having to use the sponsored listings to get any traffic to our websites." He added: "But customers don't realise that some companies on the natural listings don't have a consumer credit licence, which means they don't have to tell the customer how much they're going to pay back, which feeds into some of the problems we're seeing at the moment of customers not able to pay back their loans." Google says its key motivation is to try to direct customers to the best websites. A spokesman told Sky News: "As part of our on-going effort to reduce webspam and return high-quality websites to our users, we are constantly improving our search algorithm to better detect and decrease rankings for sites that we believe are violating Google's quality guidelines and engaging in webspam tactics to manipulate search engine rankings." For legal reasons we are not naming the websites linked to hacking but we have passed our evidence to the OFT, which told us: "The OFT is clear regarding the standards it expects from those businesses that it regulates and has publicised an extensive suite of guidance documents. "We take very seriously any evidence tending to show that businesses are not meeting the standards set out in our guidance. "The guidance for credit brokers and intermediaries states that creditors should satisfy themselves that persons they deal with are appropriately licenced. Accepting leads from unlicensed sources would raise concerns about a lender's fitness to hold a consumer credit licence." At one point during our investigation we found the highest ranking website on Google was a four-day-old domain registered to a field in California. Just a few days in this position can earn the web owner tens of thousands of pounds. Yet this site was in breach of several regulations and displayed nothing on the website to suggest it was licensed to sell loans in the UK. Last November, the OFT opened formal investigations into the tactics used by an number of payday lenders. But if the regulator wants to properly police the market, it seems it is going to have to work with Google.

End your payday loan misery

There are a growing number of credit cards on the market designed to steer some consumers back towards mainstream credit and away from the clutches of payday lenders. Since the onset of the credit crunch, many people have seen their credit score damaged, often as a result of unemployment and circumstances beyond their control. Those fortunate enough to have a job have seen little if any increase in pay over the last four years while soaring living costs continue to take a hefty bite out of any disposable income. The upshot is that there are now many more people with a less-than-perfect credit score, which means they are often not eligible to borrow from banks and building societies. Even though the best buy tables are littered with 0 per cent credit-card deals for 24 months-plus and personal loan rates at a ten-year low, unless you have a near-perfect credit history, you'll be wasting your time applying. But put yourself in the position of someone who used to borrow from the big names on the high street but, since falling into arrears while out of work, suddenly finds they are no longer able to obtain credit from this source. Where do you turn? Despite there being a growing number of credit unions across the UK, it is the payday and doorstep lenders with aggressive high-profile advertising campaigns and a growing high street presence to which more and more people are turning – and paying a heavy price for their borrowing. The only real way to get out of this situation is to take steps to repair your credit record and that's where the credit cards with a 35 per cent plus APR come in. Most credit-card companies will turn you down flat if you've got a history of missed and late credit payments or a County Court Judgement. However, specialist credit cards from Luma (powered by Capital One), Aqua and Vanquis enable UK customers who have struggled with debt previously or who have a limited credit history in the UK to apply for its plastic and give them a genuine chance to turn things round. The interest rates are well below those charged for short-term payday loans with Vanquis charging a representative APR of 39.9 per cent, Luma 35.9 per cent and Aqua 34.9 per cent APR. Borrowing £400 on a credit card at 39.9 per cent APR will cost you £13.55 in interest for one month, whereas the same sum borrowed from Wonga will set you back £125.48 in interest and fees at a representative APR of 4,214 per cent. To rebuild your credit status, you need to demonstrate a history of using a credit card in a responsible manner, so if you use the card and make payments on time every month, your credit score will get better over time. If you repay the statement balance in full each month, then even better as you'll be improving your credit score without paying any interest charges in the process. Rebuilding your credit rating will never have a quick fix but this is a real chance to prove that you are financially responsible, and in time could give you the ability to borrow once again at the prime interest rates offered by banks and building societies. I'm not suggesting that borrowing at 35 per cent to 40 per cent APR is an ideal situation, but when your options are limited, it looks a hundred times better than potential payday loan hell. NS&i and Coventry in a welcome pledge on ISA interest rates It's a longstanding gripe that new customers are tempted to put their cash into a best buy savings deal, only to find that 12 months later the rate gets slashed to next to nothing. However, two providers have just announced plans to do away with dual pricing, and will offer all ISA customers a decent deal. National Savings & Investments (NS&I) says that from 25 May customers in old T Cash and Cash ISA products paying a miserly 0.5 per cent will be switched to the NS&I Direct ISA paying 2.25 per cent. Coventry Building Society, meanwhile, says that from 6 April all its ISA customers will receive a variable interest rate of 2.5 per cent.

Payday Lenders Unfairly Portrayed as Loan Sharks

Many payday loan companies are being unfairly painted as criminal organisations or even loan sharks by areas of the British media. The public are being misled about these services and it is leading to confusion about the difference between legal and illegal lending in the run up to a very important time of the year for such companies. Borrowing in today’s climate No reputable payday lender would ever insinuate that borrowing money is a prudent financial choice but contingency plans are needed – especially in today’s economic climate. The recession has made things tougher for all consumers, whether it be people at any end of the pay scale. When approached with the right attitude, short term finance can help individuals to get out of some tight situations. The ‘lendee’ must be vigilant The criticism of the payday lending sector has emerged due to some companies apparently giving out payday loans that are unaffordable due to rollovers and annual interest rates running into several thousands of per cent. This is an issue that needs to be closely monitored, but with customers receiving legal terms and conditions and contracts, a certain amount of onus needs to be on the ‘lendee’ to remain vigilant. Payday Loan Lenders versus Legal Loan Sharks The alarming thing for payday loan lenders is the use of the term ‘legal loan sharks’ by certain outlets, which is portraying them in an overly negative light. Payday loans are not ideal and as conveyed on any site of this nature worth its salt, they should only be considered as a last option – but firms that offer this solution in a transparent manner seem to be the subject of a witch hunt. What the experts say Russell Hamblin-Boone, chief executive at Consumer Finance Association (CFA), has been voicing his concerns at recent developments. Understanding the stigma involved with payday loans, he has been doing all he can to highlight the difference between them and violent criminals such as loan sharks. As he points out, the latter charge interest rates as high as eleven million and will also threaten injury or worse if the loan isn’t paid back – certainly something that payday lenders would never do. Improved Transparency In reaction to this unfair labelling, 90% of the payday loan industry has signed up to more transparent terms and conditions – approved by the CFA. The Office of Fair Trading is also running a review into various payday loan companies and will make its findings available at the end of the year.

Text Loan

Text Loans  has become common among the way people apply for a short term loan . This service provides them facility to send the message immediately around the globe. Now a day this service is gaining popularity also because of its uses in our day to day life. This service is gaining tight hold in the money lending business as well. Lenders have introduced Text Loans to offer more convenience and relax to the borrowers.

These loans are very instant loan service. This is a short amount loan service to meet your small urgency. One can easily avail these loans within minutes by sending text message to the lenders. In message, the borrowers are meant to write the loan amount and the retrieval period. One can use this service to meet any small unforeseen expense.

With Text Loans one can instantly avail money up to £100. This loan is given for a very small period. Borrowewrs are asked to repay the amount within 7 days. This loan also provide you with easy repayment facility. after the completion of 7 days, the amount will itself transferred from your account to lenders bank account.

To avail these loans one must meet following prerequisites:

The borrower must be a domicile of UK.
The borrower must be 18 years old or above.
The borrower must have a bank account on his name.
The borrower must have a mobile and an e-mail account.

In order to get these loans you just need to visit the website of the lenders to fill an FREE online application form and submit that. Once you apply the form, SMS your lenders and ask him to transfer the amount in your account book. They will transfer the funds as soon as you message them.

This loan option also save your time. At the time of emergency you can readily get cash to tackle with.

For more information about text loans please visit our main website www.textloanlenders.com