Payday Loans Go Mainstream As Trust in Banks Diminishes

• Reluctance of banks to offer credit leading more Brits to explore alternative credit options such as pay day loans.
• Overdraft penalty charges, fines and interest make going overdrawn more expensive than a payday loan.
• 25% increase in payday loan applications in wake of Supreme Court ruling on overdraft charges.

Leading payday loans broker Paydaybank.co.uk has today reported a 25% rise in loan applications via its website www.paydaybank.co.uk in the three months since the Supreme Court ruling found in favour of the banks in the OFT case regarding overdraft bank charges.

The largest payday loans broker in the UK saw that payday loan enquiries to their website increased from an average of 40,000 per month for the three month period September – November 2009, to an average of 50,000 per month from the three months of December 2009 to February 2010.

Ohad Hessel, Marketing Manager at Payday Bank comments;

“Pay day loans are now mainstream financial products used by thousands of satisfied customers looking for a fast, hassle free form of affordable short term credit. As our figures show more and more customers are recognising that pay day loans offer a real alternative to traditional banks and credit card companies.”

An investigation carried out by the Daily Mail in February revealed that the cost of an unauthorised overdraft with the leading banks worked out to be more expensive than a payday loan. Hefty penalty charges alongside additional fees and interest mean going overdrawn on your bank account can result in 3,000% APR.*

Payday Bank’s findings come at a time when just 7% of the population completely trust their banks to treat them fairly** and unsecured loan rates are at a 9 year high, alongside credit card rates at a 12 year high.

Notes:
* Daily Mail Investigation, 10th February, 2010: http://www.dailymail.co.uk/money/article-1249827/3-000--banks-new-loan-sharks.html
**Research from money.co.uk carried out in 2009 has revealed that following the Supreme Court ruling in favour of banks over ‘unfair overdraft charges’.
PaydayBank was established in 2005 with the aim to help as many customers as possible with their short term cash needs. Applicants must be UK residents and over 18 years old and in employment.
Case Studies of satisfied Payday Loan Customers are available. Contact Dale Lovell on   or Tel: 01753 861 207 / 0779 1414 681 to arrange an interview.