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24 hour Payday Loans with Low Fee MyKingCash com

24 hour Payday Loans with Low Fee MyKingCash com

By Adam Uren Published: 17:51, 18 September 2013 | Updated: 12:44, 19 September 2013 13View commentsA trade body for the payday lending industry has called on all loan providers to spell out the cost of their lending in pounds and pence, rather than 'confusing' Annual Percentage Rates (APR).Payday lenders claim they have come in for 'unfair criticism' because they are forced to highlight the interest they charge in annual, rather than monthly, terms.Lenders such as Wonga and QuickQuid have APR levels in the many thousands, but argue that because their loans are only provided over short periods, this gives a false impression of the cost of their lending.Criticism: The CFA has argued that payday lenders get unfair criticism because their interest rates are published in annual, rather than monthly terms. The Consumer Finance Association - which represents 60 per cent of the payday industry - carried out research that found consumers of all ages are confused by APR.Chief executive Russell Hamblin-Boone said: 'The payday loans industry is unfairly criticised for its APRs.'We need to level the playing field and ensure all providers of all types of credit quote APRs and, more importantly, require all providers to tell customers the full cost of their loan in pounds and pence.'Ensuring customers have access to the right numbers to be able to compare products that best suit their financial requirements.'No-one ever pays back thousands of per cent in interest on a short-term loan. Quite simply, the average charge is £25 per £100 borrowed.'The plea from the CFA is unlikely to garner much sympathy from either the public or the financial services industry as, whichever way it is dressed up, these short-term loans are still hugely expensive.Follow our lead: The payday lending industry wants all forms of loan providers to spell out their interest charges in pounds and pence. Wonga, which has an advertised APR of 5,853 per cent, will expect £137.15 to be repaid on a £100 loan taken out over 30 days, or £527.15 if £400 is taken out over the same period.The CFA argues that taking out a payday loan is similar to other kinds of 'short-term arrangements' that meet urgent needs, such as taking a taxi, hiring a car or staying in a hotel.It says customers 'do expect' to pay a small premium for the flexibility and lower commitment a short-term arrangement brings, and that the same applies to payday loans.It does not see a distinction between buying a tangible service and buying a debt.There is also the issue of rolling over debts, which sees payday lenders agreeing to defer repayment until the next month if a customer is unable to repay, hitting them with extra charges and interest in the meantime.Payday firms' practices are currently being investigated by the Competition Commission, after a damning report by the Office of Fair Trading found 'deep-rooted' problems in the sector, including people being granted loans which they cannot afford to pay back.Almost half of 50 payday lenders who were ordered by the OFT to prove their practices were up to scratch have decided to throw in the towel.There have been calls for a cap on the interest charged by payday lenders, but the CFA said the Financial Conduct Authority should 'proceed with caution' were it considering such a move, as setting it too low could force the withdrawal of all lenders from the industry. Share what you think The comments below have not been moderated. The views expressed in the contents above are those of our users and do not necessarily reflect the views of MailOnline. We are no longer accepting comments on this article.MORE HEADLINESThis calculator will show you just how long it's going to take you to clear your credit card balance if you don't wake up, face reality, stop paying the bare minimum and start clearing this punitive form of debt.Now see how much you need to pay a month to clear your balance in the shortest possible time.Published by Associated Newspapers LtdPart of the Daily Mail, The Mail on Sunday & Metro Media Group



By Ruth Lythe for the Daily Mail Published: 01:19, 3 October 2012 | Updated: 10:05, 3 October 2012 3View commentsDesperate borrowers who have been forced to turn to payday lenders are being hammered with sneaky fees and interest charges on top of  sky-high rates.In some cases, charges are so onerous the size of a debt can triple within just a few months.In the past year, an estimated three million people have turned to payday lenders. These firms charge interest at eye-watering rates of up to 14,348  per cent and promise to pay cash into a bank account in minutes. By law, they must show the cost of the loan in the form of an annual percentage rate (APR). Lenders currently face no restrictions on what they charge, with some customers paying annual interest of more than 4,000 per centBut they do not have to give clear examples of the huge costs borrowers face if they fail to pay back on time, as one in five of such borrowers do.Campaigners have accused the firms involved in this  £2 billion-a-year industry of pushing struggling families into debt.Una Farrell, spokesman for debt adviser the Consumer Credit Counselling Association, says: ‘People are being lulled into a false sense of security by many payday lenders. ‘They realise by now that these loans come with very high interest rates. But often we find they have little idea of the huge sums they will face if they need to extend their loan.‘Firms need to be more upfront about this and give detailed examples of the true cost of rolling over loans on their websites.’Paul Crayston, spokesman for campaign group National Debtline, says: ‘People are simply not aware of what the costs can be — they are usually clear about the APR rates on the website.  But when it comes to missing payments, the amount you can end up paying can be really opaque.’QuickQuid's website does not explain the hefty cost of rolling over a loanOne of the most high-profile payday lenders is Wonga, which charges interest at 4,214  per cent. A £400 loan with the firm — the maximum amount a first-time borrower can take — spread over 30 days, will cost you £525.48 if you pay back on time. However, if like 16  per cent of Wonga customers you miss your payback date, the company lets interest mount at a rate of 1  per cent a day for a maximum of 60 days. Fail to pay back any of your loan in this time and you would rack up an extra £315 in interest payments, plus a further £20 penalty fine — taking the total owed to £860.48 in just three months.A Wonga spokesman says customers typically take out its loans for a much shorter period than 90 days and so would not be hit with the extra interest. It says it is clear about the fact borrowers will be charged interest over 60 days.Quickquid, one of Britain’s biggest lenders, which claims it offers some of the cheapest rates around, hits borrowers with a fee of up to £14.75 for every £50 borrowed — equivalent to an annual interest rate of 2,222  per cent — so a £400 loan would cost £518.The cost can be spread over two months, although to do this doubles the interest.In this case, a £400 loan could grow to £636 over the two-month period. Unlike Wonga, anyone unable to pay back their Quickquid loan on the correct date can ‘roll over’ their borrowing instead.This works by allowing customers to pay back the interest owed during each ‘roll-over period’ before paying back the amount originally borrowed, plus the interest racked up in the first month.Customers can do this three times on a loan originally spread over one month or five times with a loan initially spread over two months.While Quickquid’s website explains how rolling over the loan works, it does not show the hefty cost of doing so. So if a customer rolled over a £400 loan originally spread over two months the maximum five times, their debt would swell to £1,286 — three times the amount originally borrowed.Another of Britain’s biggest high-interest lenders, Payday UK, allows borrowers who earn just £500 a month to borrow at a rate of 1,909  per cent — charging £29.95 for every £100 borrowed.So a £400 loan, spread over 30 days, would cost £519.80 — more than the borrower’s monthly salary — if it was paid back on time.Payday UK claims it is a ‘responsible lender’ because it allows you to roll over loans a maximum of three times. On each occasion, borrowers would have to pay £119.80 interest on a £400 loan. They would then be forced to stump up the original loan and the interest at a total cost of £879.60.r.lythe@dailymail.co.uk Share what you think The comments below have not been moderated. The views expressed in the contents above are those of our users and do not necessarily reflect the views of MailOnline. We are no longer accepting comments on this article.MORE HEADLINESThis calculator will show you just how long it's going to take you to clear your credit card balance if you don't wake up, face reality, stop paying the bare minimum and start clearing this punitive form of debt.Now see how much you need to pay a month to clear your balance in the shortest possible time.Published by Associated Newspapers LtdPart of the Daily Mail, The Mail on Sunday & Metro Media Group





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