A payday loan company in the UK posted testimonials of their customers, saying they love them for providing a solution to their problems. These customers are unaware they will be charged of 782% interest rate each year. One of the payday lenders offering services to students is the Smart Pig; this lending company together with other companies were already reported to the Advertising Standards Agency for highlighting prizes everytime a customer borrows from them. They even include the opportunity of winning a term’s rent just to encourage borrowers.
Today, the payday lenders have expanded their targeted borrowers and this includes undergraduates or students, the number of borrowers within this bracket is already alarming. Last year, according to the National Union of Students, about 2% of the undergraduates have resorted to payday lending. This percentage may not sound a lot but if this will be equated to figures, this would total to 46,000 students risking the credit services of payday loans. This must be looked into by the payday lenders as they have social responsibilities too. One of the companies that have been transparent of the responsibilities of the borrowers when they fail to pay on time is payday loans by Uncle Buck. Part of their responsible lending practices is helping the borrower to try other organizations if their solution is not fitting. This means that students or undergraduates are part of the population that should not avail of the payday loans since they cannot cope up with the payment schemes. (more…)