Payday Loan compared...

One of the top Payday loan lenders in the UK is currently the Consumer Finance Association. It supplies money to payday loan businesses and it does not target the poor. There have been a lot of allegations in the media lately that Payday loan lenders are targeting the poor. However, while there are some that do, the Consumer Finance Association is denying that it is one of them.

About the Company

All of the members of the Consumer Finance Association are regulated and licensed by the Office of Fair Trading. They offer the loans both online and through high street offices. Their focus is to offer short term loans that do not build up long term debt. It owns most of the payday loan lenders in the UK and most of the loans range from £50-£800. The larger loans are typically given to those who have a good payment record.

The company has prepared a media briefing in response to the debate started by MP Stella Creasy. In it the company claims that it represents close to 70% of payday loan lending within the UK. When talking about who the loans are targeted towards, the CFA state that they are designed for those with a bank account and a job. They are not designed for those on benefits or with a low income. The company is dedicated to responsible lending. It estimates that the number of applications for payday loans is often as high as 90% for online applicants.

In November 2010, independent research was carried out by one of the payday loan companies and it found that 97% of customers were happy that the lender did everything it was expected to. There may be a lot of negative press regarding payday loans at the moment, but consumers definitely seem to like them.

How the Consumer Finance Association Helps in Hard Times

While the company does promote responsible lending, it does recognise that sometimes changes occur that are out of a consumer’s control. If problems do occur then the company si there to help the consumer in any way that they can. There are a number of options available when problems crop up. The CFA will often refer consumers to debt help organisations if they are having trouble paying.

Not long ago, the Consumer Finance Association received an apology from the Sunday Times after false statements were made regarding payday loans. It was reported that payday loan lenders were not fully competent and that they were targeting the poor. They were actually confusing payday loan lenders with home credit lenders. Those who offer home credit loans are the ones who are targeting the poor.

All payday loan lenders that are involved with the CFA are considered to be the safest to use. You can read the full media briefing on the website along with recent news stories featuring the company. While payday loans have come under fire recently, the CFA is keen to defend the market and show why payday loans can be an essential line of credit for businesses and consumers alike.