The payday loan industry doesn’t look much like it used to a few years ago. Where once lender’s shops lined the streets offering fast cash and bad credit loans, those have greatly diminished and been replaced by a move to the online space. In fact, the majority of payday lenders operate almost entirely online, which is a massive shift from where this lending niche was a few years ago.
There are also fewer lenders working the UK now, as many of them packed up and closed shop when new regulations hit and they could no longer remain profitable. Loan caps, interest rate changes and more forced many lenders to change the way they do business so drastically that they could no longer keep the lights on. Some tried their best to adapt and couldn’t make it in a changing world, and others folded up almost immediately, as the FCA started to crack down on illegal and unscrupulous business practices.
It all began in 2014, according to Finance Monthly, when the FCA started taking over the industry and regulating it as an over-watch organization. They imposed all sorts of changes and proposed many new ones that may have taken a while to take effect but have drastically changed the face of payday lending. Now, payday loans are geared more toward customers than ever before. Anyone looking for a payday loan is entitled to see what other companies offer when they look at the rates on one lender’s website. They are also entitled to full disclosure of the fees, rates and charges. The lenders have to be very open about what they are charging and when they will charge it, and that’s a far cry from where the industry was only a few years ago, when it seems commonplace for lenders to have all sorts of hidden charges.
In other words, the industry has changed for the better, as far as consumers are concerned. They have more advantages given to them and more confession being made for them. They don’t have to wonder what they will be charged for and how much it will be, because it is all made clear to them upfront. They also have easy access to lots of options like never before. They aren’t simply limited to whatever lender are nearby them, as they can access just about every UK lender just by going online, then quickly compare the rates to find who has the best deal.
Even the marketing aspects of the industry have changed, as Google has banned payday lenders from advertising their services on its search engine. There have been some serious changes made to the way payday loans are advertised as a whole. It’s a very different industry from what it was in the past decade, and consumers are benefiting from these changes. There are still a lot of lenders out there, and many of them do struggle to adapt to the times. Lenders still go under every so often, but it seems like new ones take their pace, as the industry is still a bustling one.