The Differences Between Payday Loans in US and UK

Payday Loans are short-term loans for small amounts whose return is for a short period of time. It is usually paid with the first salary of the borrower. Since the fees and interest on these loans are large, legal regulation of these loans is required. They are popular all over the world.

The country of Payday Loans is considered America, but they are more successful in the United Kingdom. The money they take ranges between £ 500 and £ 1000. The interest rate is about 25% and regular borrowers are youngsters.
The Financial Conduct Authority is a UK authority that governs and controls the relationship between creditors and borrowers. The total fees for all payments, including interest and default fees, are limited to 100% of the total amount borrowed.

The most famous creditors in the UK are Wonga, Dollar Financial Group, Payday UK, Ladder Loans and Payday Express.
The Financial Conduct Authority has imposed fines on unfair creditors and borrowers, and yet the use of Payday Loans in the UK remains a common practice. The advantage is the quick procedure and the easy terms to be met.

In the home country of these fast US loans, they are known as cash advances, salary loans, payroll loans, cash advance loans, payday advance, etc. To regulate this way of lending have imposed a limit on APR. In many states, even Payday Loans are banned.

In some states, they also restrict the re-credit before the first is paid out. The people who use these loans are mostly low-income and money is needed mostly for food.

The conditions you should meet are:

  • be over 18 years of age
  • prove that you have income
  • submit a bank account
  • allow your personal data to be processed

Be careful when applying for Payday Loans, pay attention to all interest and fees and return the money on time.