Banks are Failing Their Customers as Brits Turn to Other Ways of Raising Finance, Says Speed-e-Loans
With banks seemingly becoming less and less likely to help their customers with their short term finance needs, Brits are turning to pawnbrokers and payday loans in a bid to make ends meet.
HERTFORDSHIRE, ENGLAND, September 10, 2010
With banks seemingly becoming less and less likely to help their customers with their short term finance needs, Brits are turning to pawnbrokers and payday loans in a bid to make ends meet.Commenting on how the number of pawnbrokers has more than doubled in the last seven years, with 1,300 now across the UK compared to just 500 in 2003*, finance expert and CEO of payday loan company speed-e-loans Gary Miller-Cheevers says: "Isn't it shocking that the great British public have had to resort to clearing out the attic just to make ends meet?
"News reports highlight how pawnbrokers are seeing a surge in profits as cash strapped consumers hock their valuables, often in order to pay for day-to-day living costs. They also highlight the increase in payday loan take-up rates, often citing this short term finance solution as 'expensive' and liable to leave 'consumers caught in a debt trap'**.
"However, this is scare mongering. For example, with our service you may see an APR of 2334% advertised which looks outrageous. However, put in to context, borrowing money this way can work out cost-effective, certainly when compared to what some Banks would charge for an unauthorised overdraft."
Mr Miller-Cheevers explained that both these finance vehicles are short term solutions which are designed to be repaid quickly, so any interest charged will only be for a short period of time and that is why they are increasing in popularity.
He added that over a third of his customers were "financially-savvy" with 36% being in the 30-40 age bracket - people traditionally regarded as being more financially sophisticated than their younger contemporaries - and 50% being white collar workers and professionals, including Doctors, Accountants and Financial Advisers***.
"If the banks got their houses in order and actually starting helping their customers, then we wouldn't be seeing this increased need for pawnbrokers and payday loan companies. Yet the Banks still continue to fail their customers, seemingly being just as unable to help as they were 12 months ago, either refusing financial assistance point blank or charging fees and rates that can work out very costly indeed."
Mr Miller-Cheevers summarised: "Is it any surprise that smaller better managed specialist finance providers such as speed-e-loans have sprung up offering a quick, easy and often cost-effective way of solving short-term finance needs?"
*Source: Metro newspaper 06.09.10
**Source: Quote from financial Watchdog Consumer Focus's financial services specialist Marie Burton
***Source: speed-e-loans data for period Feb-May 2010
Website: http://www.speed-e-loans.com