Westerham, Kent -- (SBWIRE) -- 11/24/2014 -- In the recent Competition and Markets Authority’s provisional decision on remedies, arising from its Payday Lending Investigation, statements of the cost of borrowing have been proposed.
Uncle Buck Payday Loans LLP supports this remedy. Providing a customer with a confirmation that their loan has been repaid and displaying the amount of the repayment is good practice, so extending this to include the cost, including late fees, aids transparency.
Customers should already have received a Notice of Default Sums if a late fee has been added to their account, but the impact of the overall loan costings when a loan has been repaid is likely to deliver a much stronger message.
Embracing the number of loans issued during the previous 12 months, including the costs thereon, and potential savings if the customer had repaid on time (eg late fees and possible additional interest that could have been avoided) will help to focus customers’ attention on their borrowing habits. In particular, a customer considering re-borrowing – whether with the same lender or through a new search – may be induced to re-consider at that time. Conversely, depending on individual customers’ definitions of “value”, or the perceived peace of mind obtained through having access to a small amount of funds over a short period of time, some customers may consider the loan they have just repaid as a worthwhile transaction in helping to smooth the peaks and troughs of expenditure.
Uncle Buck displays the required warning on its website and is clear that payday loans are unsuitable and expensive as a means of long term borrowing. Uncle Buck also makes it clear that this form of funding is not suitable for anyone in financial difficulty.
Requiring a customer to confirm review of the information presented helps to avoid the “bypass” of these important details, although of course we can never be completely sure that the information has been received and understood in a meaningful way by the customer and to include additional items of information such as net income would increase the time requirement, development cost and individual statement cost. Keeping the information presented concise and relevant will help to ensure that it meets the objective.
Uncle Buck provides comprehensive information on the cost of loans, and any potential default charges, on its website and in the pre-contractual and contractual information. Customers are also able to log-in to a secure customer portal to access loan information, which includes any fees incurred.
Uncle Buck will be working towards implementing this remedy, when the exact requirements are confirmed, by the required deadline.
For more info, visit https://www.unclebuck.tv/payday-loans.html
About Uncle Buck Payday Loans LLP
Uncle Buck Payday Loans LLP is one of the leading short term loan providers in the U.K. which offers instant decisions and quick approvals. The company is authorized and regulated by the Financial Conduct Authority (FCA) and is fully committed to following the Good Practice Customer Charter. Uncle Bucks has also attained a reputation for providing one of the best customer supports in the financial industry.
For more information about Short Term Loans in the U.K., visit unclebuck.tv or please call at 01959 543400 or email to info@unclebuck.tv