One of the largest lenders of payday loans in the UK, Cheque Centre, will stop selling short term loans to their customers. The Cheque Centre is known for offering a wide range of financial services including currency exchange.
Payday loans have a negative reputation because of the high interest rates and debt collection processes. The industry regulator, the FCA, has been cracking down on short term loan companies and it’s expected they won’t be the last organisation to close their doors to customers needing high interest loans. The FCA’s Chief Executive Martin Wheatley said that he expects over 20% of short term lenders to leave the market place.
The Cheque Centre has over 450 branches across the UK and it known for unfair practices towards their customers who fail to pay the debt back.
Under new regulations the FCA will be tackling payday lenders and their operation to minimise the negative elements – such as taking money from the bank accounts of family members to satisfy the debt.
The Cheque Centre will continue to offer loan term loans, but the interest rates will be more competitive.
Payday Loan Debts
There are debt solutions which can help people struggling with payday loans. Many organisations will fail to accept payday loan repayments and will continue to add on interest and charges.
A payday loan is an unsecured debt, similar to an overdraft, personal loan or credit card and can be included in a debt solution. This could help freeze interest and charges and create an affordable repayment plan.
There a millions of people borrowing money from payday lenders in the UK to help financial month to month. The starting process is to get help and financial support from a charity.