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Payday advances, along with other short-term financing

Payday advances, along with other short-term financing

These pages contains information on our basic way of complaints about pay day loans along with other lending that is short-term. If you’re looking information especially with regards to Covid-19, please examine our specialized page which has information for customers about complaints in terms of Covid-19 .

What exactly are payday advances?

Pay day loans are a form of borrowing referred to as “high-cost, short-term credit”. You borrow between ВЈ50 and ВЈ1000 and spend the loan back with interest, in a single re payment on or soon after the next payday. This type of borrowing is often more costly than various other online payday loans kinds of credit.

There are various other kinds of short-term financing, including:

  • instalment loans – payments are spread monthly or weekly over several repayments, typically between three and a year
  • ‘running credit’ or ‘flex credit’ – the way in which this works is comparable to a bank overdraft, borrowers and offered a ‘limit’ that they’ll set up to as a if they want to, provided they spend at the least the interest off every month. Whilst the credit contract have not fixed end date, this kind of credit is high priced and meant for temporary just use.

Kinds of complaints we come across

We have complaints from customers whom inform us that loan providers:

  • lent them cash without checking they could pay for it, and today they will have lots of extra interest and costs which they can not spend
  • had been unreasonable or unjust when their financial predicament changed
  • were not clear about whenever payments had been due