WagedayAdvance provides short term loan services which has to be repaid on your next payday or if you get paid within the next 21 days. You could borrow an amount ranging from 80 pounds to 750 pounds depending upon your credit worthiness which is thoroughly assessed by the firm. New customers are allowed to borrow a maximum of 350 pounds and the credit limit may be increased if they manage to create a good repayment history with the lender. If the loan is paid off within the first 21 days, an interest is charged for those 21 days.
There are certain basic requirements for being eligible to take WagedayAdvance loans. The borrower must be a citizen of UK and must have acquired 18 years of age. He/she must have a valid UK bank account with a debit card. Also, it is important that the person should have a stable income and must be employed. This is to ensure that he is capable of repaying the loan.
The interest rates for payday loans are very high. They are calculated on a daily basis at the rate of 0.8% per day. So if you borrow an amount of 270 pounds for 34 days that will incur an interest of 73.44 pounds, the daily interest being 2.16 pounds per day. Hence the total amount you will have to pay will be around 343.44 pounds i.e. 1223.6% APR representative.
WagedayAdvance conducts credit checks for all its customers. Your loan might be approved despite not having a very good credit history if they feel you are in capacity to repay the loan. A unique loan approval system is used by WagedayAdvance apart from using the details that the credit reference agencies hold about the borrower. The lending decision is not based solely on the credit rating, but a careful decision is made after getting to know the borrower.
If you face a sudden financial problem and realize that you are unable to repay the loan, you must inform the firm about the same so that a workable solution is identified. Deferring your repayment will be very costly and it will take much longer to repay the loan. This will also lead to additional charges as the interest would keep adding up and a default fee of 15 pounds is charged.
WagedayAdvance provides very good customer service and its loan terms are quite competitive. The procedure to apply for a loan is very simple. You could apply for a loan over the phone or online. You could also get in touch with the customer service representatives on all days except Sunday. Once your application has been given an approval by the firm, the money is transferred into your account almost immediately. Despite having better terms than its competitors, they first advise you to not borrow such loans for a long term.
The complaints against WagedayAdvance are far lesser than its competitors. It was established in 2004 and has a much better corporate credibility than any of its competitors. The firm is registered with the Companies House and it has a consumer credit license from the Office of Fair Trading. This is another plus point of WagedayAdvance as many of its competitors are not registered with the Companies House.
WagedayAdvance is authorised and regulated by the Financial Conduct Authority. It is also registered with bodies like Consumer Finance Association, Consumer Credit Trade Association, BCCA, Finance and Leasing Association. It is in compliance to a charter from these bodies that is for the rights and protection of customers. The firm is committed to the charter and independently monitors its compliance to it.
The lenders who sign this charter have to make some key commitments which include – acting fairly and responsibly in all their dealings. They must inform the customer about all the costs and risks involved with such loans. An appropriate affordability assessment has to be done by the lenders. The lender must act positively and sympathetically with the customers if they are facing a long term financial trouble.
The lender must freeze the interest and other charges if a repayment plan has been worked out when the customer is unable to repay the loan on time or if the loan has not been repaid for more than a period of 60 days. The lender may also recommend some debt and financial counselling organizations to the borrowers that will help them come out of their difficult situation.
WagedayAdvance usually takes it payment through Continuous Payment Authority which is also known as CPA. It is a kind of automatic regular payment that uses the debit card that is linked to your bank account and which you have registered with the firm. Payments will be taken only on those dates and only for that amount which has been decided in the loan agreement.
The customers have the right to cancel the Continuous Payment Authority by informing their bank and the firm about the same. After cancelling the CPA, the customers must find some other way of repaying the loan on the due date as failing to do so would lead to a default fee of 15 pounds and other additional charges.
The Debt Advisory Centre (DAC) had reported about the rise in cost of living in UK in the last few years. Despite repeated warnings from the government about the risks associated with payday loans, a large number of UK citizens are opting for such kind of loans. The findings of DAC’s report suggested that a majority of people who had taken some kind of a payday loan in the last 1 year, used it mostly for covering everyday expenses.
Due to the rise in the cost of living, an average UK household has to struggle to make ends meet or they tend to have very little or no savings to fall back to handle an emergency. Very few people take the payday loans for other purposes like recreation or for buying gifts for someone. People struggling to save money should avoid taking such loans.