Responsible lending in the payday lending industry

The concept of responsible lending or irresponsible lending (as some might say) is elusive to a large extent, since there has been no clear direction from the government or legislative regulatory bodies. Unclear scope of this legislative piece has put consumer action groups and credit lenders face to face in a stiff battle, each interpreting laws in their own way to eke out benefits.

The OFT along with the BERR has launched a consultation to define the scope of the Consumer Credit Act 1974 (as amended by Consumer Credit Act 2019) with regards to responsible lending.

A Creditor should

Consider the relevance of the product to prospective customers.
Assess the ability of a customer to repay the loan amount over the entire repayment duration.
Proactively provide a borrower with a sufficiently clear, and detailed explanation to enable the borrower to assess whether a proposed credit agreement is suited to his needs and financial circumstances.
This is not an exhaustive list of creditor’s obligations, but gives a generic idea of the Consumer Credit Act regime. At Lending Stream Limited, we make sure our lending practices meet the strictest criteria laid down by any regulatory body. We comply with these regulations not just to avoid regulatory wrath but also to ethically conduct our business for the benefit of our customers.

– We don’t lend you more than you need. Our credit assessment makes sure you are never in a cycle of debt.
– We offer flexible 4,5,6-months easy repayment plans.
– We disclose all the key information and charges upfront to avoid any ambiguity later on.
– If you are in doubt about whether short term loan is suited to your needs, don’t hesitate to give us a call to discuss any questions you may have.

If you have a cash requirement, we can help you out with a payday loan.

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Redefining the payday loan product

As a general rule of liberal capitalist economy, stiff competition between enterprises results in better and more services for an average consumer. More deals, attractive rates and promotions are the tools that companies employ to move a consumer base in their favour. But, such tactics are short-lived and cannot replace a positive image of a brand. Customer loyalty is ensured when a brand offers impeccable service and distinctiveness in delivery. These brand building measures as compared to marketing gimmicks establish a company as a big challenge to other similar service providers and hence a potential market leader.

Similarly, in payday lending, various lenders try to entice their customers, through flashy websites and unproven claims, to take out a loan with them. But a responsible payday lender, with an objective to become a market leader, will usually reward a loyal customer through consistently good service delivery, affordable loans and flexible repayment plans.

Lending Stream aims to achieve exactly the same. We aim to take the lead of the payday lending industry, which is viewed with skeptic eyes, by establishing high standards of legal compliance, data security measures, and providing innovative payday products to meet your needs.

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If you have a cash requirement, we can help you out with a payday loan.…