December 29

Pay day loans, as well as other short-term financing

Pay day loans, as well as other short-term financing

This site contains details about 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 have a look at our page that is dedicated that information for customers about complaints pertaining to Covid-19 .

Exactly what are payday advances?

Payday advances are a kind of borrowing referred to as “high-cost, short-term credit”. You borrow between ВЈ50 and ВЈ1000 and spend the loan back with interest, in one single re re payment on or right after the next payday. This type of borrowing is commonly more costly than several other forms of credit.

There are various other forms 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’ they need to, provided they pay at least the interest off each month that they can draw up to as an when. This type of credit is expensive and intended for short term use only while the credit agreement has not fixed end date.

Forms of complaints we come across

We have complaints from customers whom inform us that lenders:

  • lent them cash without checking they can’t pay that they could afford it, and now they have a lot of extra interest and charges
  • had been unreasonable or unjust when their situation that is financial changed
  • were not clear about whenever re payments had been due

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