Payday loan is the best way to get money quickly and urgently. This type of loan helps people in case of emergencies like medical bills or house repairs. Some people use this money to pay the unexpected school expense of their own or their kids. This type of loan is working from years and is very old. With time, there have been many changes in this type of loan. FCA also changed the rules of payday loan to make sure that the loan is being given to only those people who can afford it. These changes will also make sure that borrower knows all the terms and cost that are being applied to this type of loan. To make these things possible FCA has made many differences.
The biggest difference that has been made is to limit the number of times for which a person can get this type of loan. Some companies provide the opportunity of rolling the loan to the other month that is not a good idea. It can lead to big loan money and people will not even know that their loan money is increasing day by day. The interest rate that is being charges monthly can increase in case of rolling the loan. FCA has fixed the number of rolling for two months after that the borrower will have to pay the loan. Rolling the loan can help people and its limitation make sure that the debt does not increase too much.
The lender gets the borrower’s account number to get the money of the loan from it whenever he wants after the due date. The lender can also take money as much as he wants. The rules of payday loan give him this authority. A good lender will always let the borrower know how much money he is taking and when he is taking it but there are some lenders, who do not think that they should tell the borrowers. CPA helps to avoid default payments in case borrower forget the due date of loan payment. some bad money lenders can also misuse the account number borrower has provide them and that is why it is important for the borrower to think very carefully before choosing the company. Sometimes companies deduct loan before you have paid other bills and that can delay the payment of many other debts such as mortgage, bank charges, or credit card bills. In case the borrower does not have money in his account, lender can try only two times to make the withdrawal. After that, he will have to contact the borrower. Lenders can only deduct the whole money from the borrower’s account and if he does not have that, lender cannot take any money at all. That helps the borrower to keep some money in his account. If borrower wants, he can pay a small amount of loan once to reduce the burden of the loan. However, in second payment, he will have to pay the whole remaining amount of the loan in one go. Apply for payday loan but be careful which company you are choosing.