Payday Loans Media Myths Exposed

HERTFORDSHIRE, ENGLAND, November 16, 2010

Statistics* released today by payday loan company speed-e-loans.com have exposed some of the media myths surrounding this industry, suggesting that the negative press coverage is scare-mongering.

MYTH ONE - the payday parasites

Despite press articles claiming that payday lenders prey on their customers (with one red top newspaper referring to those in the industry as "payday parasites"), 70% of all payday loans through speed-e-loans are paid back on the date selected when the loan was first taken out.

The remaining 30% take advantage of their strict extension (or 'roll-over') policy, which limits the amount of times a customer can extend their borrowing, so that their debt doesn't accumulate beyond their control.

MYTH TWO - payday loans encourage people to buy what they don't really need

Again contrary to what the red top press would like us to believe, most payday loans are put to normal and sensible use, with:

- 36% using the loans to pay bills,
- 27% for an emergency purchase,
- 20% for a special occasion, and lastly,
- only 17% or 1-in-6 who 'just need cash'.

Gary Miller-Cheevers from speed-e-loans summarises: "All we are is a faster, modern and more accessible version of what normal people used to expect from their bank. If a customer borrows GBP250 for 3 weeks until payday an emergency from us, our fees are clear: GBP53.54 total including interest and fast transfer fee; and in most cases, the money is in your bank in an hour. Some think it's good value, others don't, but it is clearly displayed and very transparent."

Visit www.speed-e-loans.com for more information.

speed-e-loans.com is a practical alternative to banks that can no longer help their customers with their short term financial needs. Privately backed by people who understand our customers, our mission is to provide instant decisions and two hour money whenever they need it.

We are at the cutting edge of modern consumer finance by offering small, short term loans online with real speed and ease. We are flexible and paper free which means you can apply using our easy-to-use website whenever you need cash in a hurry. We also offer a prepaid MasterCard that can be loaded with your payday loan. We have a consumer credit licence from the Office of Fair Trading.