PAYDAY LOANS EXPLAINED

Payday loans are essentially a short term solution when your cash flow doesn't meet your immediate needs. Payday loans or cash advances are suitable for all kinds of people who need to finance something quickly, but they are not suitable for long term finance solutions. If unexpected expenses arise then short term loans are ideal. They are often approved and paid very quickly by simply filling in an online form with basic details. As these loans are generally provided on trust. As trust levels increases, more can be borrowed.

CHARGES & DURATION OF LOAN

The typical representative APR is 1734%. A representative example would be to borrow £50 for 30 days. The total charge for credit is £14.75. Interest is fixed at a rate of £14.75 per £50 loan. The Total Repayable is £64.75. Please see 'How much does it cost' for more details on costs and what you'll have to pay back.

RENEWAL POLICY

Our lenders understand there can be times when you are unable to repay your loan in full when it is due. If you find yourself in this situation the lenders will normally consider giving you an extension of the loan. However, before they do they will need to assess whether offering an extension will adversely affect your financial situation. The loan will not be automatically renewed unless specifically stipulated by the lender. You will need to discuss this with your lender as soon as you are aware that you will not be able to repay the loan. If they agree to roll your loan over, you will typically only be required to repay the interest. The original amount borrowed will be 'rolled over' into a new loan which you will need to repay when you next get paid. Extensions, partial payment and early payoff requests must normally be received at least three working days before you are due to repay the loan.

CREDIT SCORE

As a condition of extending credit, some lenders you may be matched with will run a credit check from a major credit reporting bureau. Please be aware that in some cases of non/late payment you may be reported to a credit rating agency which could negatively affect your credit score/rating. Our lenders understand there can be times when you are unable to repay your loan in full when it is due. If you find yourself in this situation the lenders will normally consider giving you an extension of the loan. However, before they do they will need to assess whether offering an extension will adversely affect your financial situation.

LATE/NON PAYMENT

Depending on the lender we match you with, should you fail to make the repayment within 24 hours of its due date you will normally be charged a set amount to be added to your account. Other charges may be applicable to this agreement depending on the lender. To find out more about the charges due to late/non payment, see 'I am unable to replay my loan'.

COLLECTION PRACTICES

In November 2012, the Office of Fair Trading updated their Debt Collection guidelines. It is important that you know that companies cannot force you to repay more than you can comfortably afford each month and if you make a reduced payment, companies should not refuse it. For the full guidelines visit here

Here at PocketPayday we aim to provide customers with a clear understanding of the products they are applying for, and of the services we provide. PocketPayday is an online loans broker and will attemnpt to match your application with one of a panel of lenders, aiming to give you a better chance of being accepted for the loan you require. We do not charge you any fee's for this service, however we may receive a fee from the lenders or brokers we introduce you to.

How to choose safely

All lenders within our ping tree are sourced from reputable companies however we cannot vouch for every potential lender we offer our customers. Before you make your decision to take a lenders offer, please ensure that their company, company registration, CCL license and physical address is clearly illustrated at the bottom of the site.

Budgeting

Take a serious look at your incomings and outgoings over the next month before applying for a payday loan. If you can't afford one, it could end up being far more expensive then you first thought. Remember what you borrow this month will need to be paid back the next so make sure you do not enter a cycle of Payday Loans.

Missed payments

It's entirely possible that you'll be expected to pay an extra charge if you miss a payment. It's almost certain that you'll need to pay further interest on the amount you already owe. This is further interest on the entire loan amount owed to that point, not just the original amount you borrowed. We always recommend repaying on time.

Rolling over payments

It may be possible to 'roll over' payments. The interest on this will likely be the same as on missed payments, however it may help you avoid penalty charges. We always recommend repaying on time.

Repeated loans

If you find that you are repeatedly taking out payday loans (especially if you are constantly increasing the amounts), then you may be misusing them. Please consider independent advice and taking a serious look at your budget. There are companies who specialise in Payday Loan debt solutions but please contact us if you need help.

Where to get advice

You can get advice by going to the Citizens Advice Bureau, or the Government debt advice site. You can also go to an independent debt advice charity. None of these should charge you for debt advice or even to help you set up payment plans if necessary.

We work with all of the top UK payday lenders in order to ensure you get the money you need with the minimum of fuss. Some lenders have differing fee structures however most follow a simple payback structure as follows: You will typically be charged £25 for every £100 you borrow - in other words you borrow £100 and pay back £125 or you borrow £200 and pay back £250 and so on.

You Borrow   You Payback

£100       £125
£200       £250
£300       £375
£400       £500
£500       £625
£600       £750
£750       £937.50

Don't payday loan companies charge thousands of percent interest?

All financial companies are required to give a representative APR figure which details how much a loan would cost if taken out for a year. A payday loan is only designed to be taken out for a short term (until next payday) however the APR calculation means that the interest rate is compounded the same number of times the loan period would fit into a year. This can very quickly give large APR percentages which do not necessarily reflect the actual cost of the borrowing.

We will always give you real world examples that show the true cost - what you will pay back based on what you borrow. Simply use the sliders at the side of the page and you can see a guide as to the true cost of your payday loan.

Implications of Late Payment: Depending on the lender we match you with, should you fail to make the repayment within 24 hours of its due date you will be charged a set amountto be added to your account. Other charges may be applicable to this agreement depending on the lender but below are some of the scenarios we have seen in the past.

• 1. The Lender writes to you, due to a failed repayment of your loan on the date specified above, at £10.00 per time.
• 2. The Lender makes, or attempt to make, contact with you by telephone or text message regarding the failed repayment of your Loan, at £5 per time.
• 3. The Lendere-mail you regarding the failed repayment of your Loan, at £5 per time.
• 4. The Lender mayreserve the right to make a daily charge of £1 for any unsuccessful Debit Card attempts to take a payment that is overdue.
• 5. You change address without notifying us accordingly, a tracing fee up to a maximum of £50 may be applied to cover our expenses.

Implications of Non Payment: Should your account continuously remain non-paid then:

• 1. The Lender may issue a Default Notice due to continued non-payment, at no extra cost.
• 2. The Lender may apply for a County Court Judgment via Money Claim on Line as part of our collection process.
• 3. In taking steps to enforce, or attempting to enforce, our rights under this Loan agreement, any other reasonable costs incurred by the Lender. Interest will be charged at the rate detailed in the terms and conditions both before and after any Court Judgment, from the date payment is due until the date that payment is made in full.
• 4. The lender may request enforcement of any County Court Judgment, in the form of an Attachment of Earnings Order or Warrant of Executions, all court costs will be added to the total amount repayable.