Lending Stream

Lending Stream

February 15, 2010 01:00 ET

Play It Safe With Lending Stream Payday Loans

EDGWARE, UNITED KINGDOM--(Marketwire - Feb. 15, 2010) - Statistics reveal that people from low-income groups had debt of around £29 million in payday loans by the time the festive season had kicked in. Needless to say, the figures would have doubled, post Christmas. What is shocking is the fact that most of them had borrowed from illegitimate lenders or the 'sharks', as the industry calls them. With an average loan size of £300, which essentially means having to repay twice that amount, the burden on these borrowers is crippling, and they could very well be paying off their loan till Christmas this year. Since they have fallen prey to the loan sharks, their situation can be worse than a nightmare.

The report published by the Financial Inclusion Centre also revealed that around 200,000 households fall prey to loan sharks every year. Extortion and harassment are some of the most common complaints from these stricken families, who had turned to the simplest of solutions during a financial crisis – paycheck loans. Of course, a little discretion would have gone a long way in helping these borrowers make the solution work in their favour and not against.

Amidst the haze of unscrupulous lending, there are a few companies that stand out for their customer-centric practices. Whether it is transparency in the lending process or legitimacy in the debiting practices, firms like Lending Stream have built for themselves a 'clean' reputation. This is largely underscored by a 'responsible lending' policy that is reflected in every stage of their 'see-through' loan system. No fine print charges and no inappropriately binding loan terms, only flexible repayment options, secure transactions and fair collections practices are some of the elements that contribute to their 'honest lender' image.

A spokesperson from Lending Stream commented, "We believe all our customers have the right to fair and affordable credit. History tells us that no business has ever come so far with the intention of fleecing their customers. We are proud of our lending practice and can confidently claim that we offer customer friendly services."

A payday loan can come in handy when people are turned away by high street banks while their needs for cash are rather urgent. Contrary to the popular belief, these cash alternatives cost less than an unplanned bank overdraft, which makes them a natural and practical choice for short-term borrowers. However, people need to be careful before and after taking the loan to ensure that they do not fall to the guile of loan sharks or get into a debt mess themselves.

"We expect our customers to be prudent with their borrowing decisions. And we do our bit to make sure they do not get into the spiral of debt with us," the spokesperson stated.

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