Responsible lending

MyPayday believes that payday loans can be a great product as long as they’re used appropriately. As such, we’re proud to be a responsible payday loans broker. We will always do our best to live up to these aims:

• We will not encourage someone to take out a payday loan if we think it would be a bad option for them to take.
• We will not intentionally target anyone with our advertising who has long term financial issues, is unemployed or under 18.
• We will not intentionally encourage anyone to borrow more than they can afford to repay.
• We will not charge you to make an application.

• Make sure we give you a clear, full, understanding of what we offer throughout our website
• follow legal and ethical marketing practices.

If we aren’t living up to these aims, please let us know by contacting us.

How to choose your payday loan safely

There are, unfortunately, less scrupulous payday loans brokers and lenders out there. The more accountable they are, the more likely they are to be above board. It’s always worth checking for actual contact details, including a phone number and an actual physical address. They should also have their licence number displayed on the site, usually on the homepage or in the “about us” section.

Budgeting

Payday loans are designed to be repaid at the end of the month, and missed payments or rolling over payments can become more expensive. Before applying, you should check if you can afford to make the repayments. There is plenty of good budgeting information online which will help you if you haven’t done this before.

Missed payments

Repayment is set up at the same time you accept the loan, and goes through automatically. If you don’t have funds in your account when it’s due to be repaid, you may incur penalty charges. As well as this, interest will very likely continue to grow on the entire amount owed, and not just the original amount borrowed. To avoid this, it’s important to repay in full and on time.

Rolling over payments

Another way of avoiding missing payments is to contact the lender and arrange a ‘rollover’. This may avoid penalty charges, but it’s still very likely that you will need to pay interest on the entire amount owed rather than just the original amount you borrowed. We strongly recommend repaying in full and on time.

Repeated loans

Payday loans, sadly, can be misused and turned into a far more expensive option than they should be. One sign that you may be misusing them is if you’re repeatedly taking out payday loans for larger amounts, in order to cover repayments. If this is happening, please take a serious look at your budget and what you can afford. It may also be worth looking for independent advice.

Short term loans

Payday loans are not long term products and are not designed for covering regular household expenses. They’re designed for one-off expenses or emergencies, or to help with the effects they have on your budget. If you are having long term financial difficulties, you may benefit from some help or advice.

Where to get advice

There’s plenty of freely available advice and help if you are having long term financial difficulties. We suggest you start at the Citizens Advice Bureau , or the Government debt advice site You can also go to an independent debt advice charity. All of these should offer free advice – do be wary of anywhere that offers to help you with debt in return for a fee.

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