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EPR Archived News |
Couple's Horror Story With Bank Charges Highlights A Need For Other Short-Term Credit Options
Released on: November 18, 2010, 6:03 am Payday loans are often given negative attention in the media because they’re viewed as a form of high cost credit. However, while banks are clamping down ever harder on customers who don’t stick to the terms of their overdrafts, and inadvertently pushing some customers into unmanageable debts, a leading payday loan company says payday loans offer consumers another option when faced with a need for emergency credit. It also advocates the simplicity and transparency of this option, especially when compared with unauthorised credit charges. A national newspaper recently highlighted the plight of a young couple who found themselves being expected to pay out a staggering £1,700 to a high street bank – all because they went overdrawn by eight pence. Angela Hannibal, from Essex, had an account with a high street bank on which she was charged a monthly administration fee. When, one month, that fee took her overdrawn by just 8p, her bank immediately demanded a £170 administration charge. Angela, who had a young son with her partner, Wayne Green, could not understand how they were continually paying back money to the bank and then getting charged again every couple of months, which kept the debt spiralling out of their control. Payday Express maintains that their instant payday loans offer consumers a choice in the short-term credit market; an alternative to being at the whim of fees imposed for unauthorised credit. Angela could potentially have avoided those extra charges had she taken out an emergency loan to clear the debt initially or, better still, to avoid going into unarranged overdraft in the first place. “Payday loans offer a simple and flexible credit option for people in need of small, short-term loans,” says Sarah Carroll of leading online payday loan company Payday Express. “They’re especially suitable for meeting sudden, temporary shortfalls in cash, because of the instant nature of the product and the fact that customers’ don’t need to tie themselves into a long term credit arrangement when they only need credit for a short period of time. They are also generally a cheaper alternative to the unarranged overdraft fees banks can impose.” Sarah added: “Our customers always know the cost of the loan up-front. They also know that, when their payday comes around, the loan will be paid off. “The process of arranging same day loans is quick and non-intrusive, and managing it is easy. On an £80 loan, the
customer will pay back £100 on their payday – that’s it, no long-term commitment or
unforeseen charges.” Contact Details: Ashleigh Preston
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