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Payday Loan Lender Endorses New Lending Code for Small Cash Advances
In a statement issued today, loans industry expert Gary Miller-Cheevers (and CEO of payday loan company speedeloans.com) has endorsed the new Lending Code for Small Cash Advances which formally launched at the House of Commons on 14 July 2011.
HERTFORDSHIRE, ENGLAND, July 15, 2011 /Money PR News/ -- In a statement issued today, loans industry expert Gary Miller-Cheevers (and CEO of payday loan company speedeloans.com) has endorsed the new Lending Code for Small Cash Advances which formally launched at the House of Commons on 14 July 2011.
The new Code - which is in addition to all legal, OFT and any trade association requirements - has been drawn up by the Consumer Finance Association (CFA) which is the trade body representing major businesses offering short term, unsecured personal loans in the UK. The launch event was hosted by Stephen Lloyd, MP.
Payday lenders and their practices are regularly under fire from the media who often portray such companies as preying on the unemployed; lending money to people who cannot afford to pay it back; and charging 'outrageous' interest amounts.
Commenting on the launch, Mr. Miller-Cheevers said: "Speedeloans fully supports the new Code - not only will it give consumer confidence, but it also means that the less-than-ethical small loan providers will have to be accountable for their actions. Responsible lenders such as ourselves often get tarred with the same brush as these companies, when what we are actually doing is providing a useful and fair service to working people who have a temporary cash flow problem - as both our own data and independent research from the CFA confirms*".
Key highlights of the Code include:
- where a customer encounters significant repayment difficulties, they will be offered a modified repayment schedule to pay down the outstanding debt in a manageable manner and will be given details of free advice services that can help customers who have financial difficulties;
- if customers request a further loan, they will need to be reassessed. A successful application for one loan is not an indication that a further loan will be agreed;
- total transparency - always showing applicants the total cost of repayment clearly and prominently before they apply for a loan. There will be no hidden fees or charges.
Mr. Miller-Cheevers adds: "This Code will make it harder for people to get caught out by unscrupulous lenders, as well give support to those who may find themselves in difficulty, which is fantastic news all round. After all, why would a responsible business want to lend money to people who demonstrably cannot pay it back? We vet our customers very carefully, using both technology and underwriters to assess each applicant, with around 90% of them being rejected.
"Typically, of the 8% of applicants that are accepted, 75% pay back on time, while the remaining 25% take advantage of a strict extension (or 'roll-over') policy, which limits the amount of times they can extend their borrowing, so that their debt doesn't accumulate beyond their control.
"Like other reputable payday lenders, speedeloans is not here to pile misery on heavily indebted individuals. Our aim is to provide a fast cash injection to people who can easily afford to repay the loan back".
"The launch of this new Code is great news for consumers and the industry as by having guidelines, consumers will be able to feel more comfortable dealing with payday providers that subscribe to the code while the industry will be able to show that it is taking media and public concerns seriously and it is actively taking steps to address them."
* Independent research from the CFA shows:
- 50% of payday loan borrowers earn in excess of GBP19,200, and 75% earn more than GBP15,000;
- 94% of payday loan customers come from a household with at least one full time worker.
This is supported by actual data from speedeloans where:
- over 50% of their customers are professionals, (broken down further, over 25% of borrowers are employed as either a nurse, doctor, teacher; are in the armed forces; or in the police or emergency services, while 7% of all borrowers are solicitors, accountants, or financial advisers - professions that tend to be associated with a higher wage);
- 100% of speedeloans customers are in full time employment.
Website: http://www.speedeloans.com
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Press Release Contact Information:
Gary Miller-Cheevers
SpeedeLoans.com Limited
Director
720 Centennial Park
Elstree, Herts
UK WD6 3SY
Voice: 0844 879 3199
Website: Visit Our Website |
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