Am I responsible for my payday loan debt? Who can I blame when I can’t pay my debt?

Who is responsible for my payday loan debt? Am I responsible? This is a common and controversial question often asked in the credit sector in the UK. For over ten years, the payday lenders have been in the firing line and have wrestled with the Financial Credit Authority (FCA) and the Ombudsman. The members of the public who have over-borrowed have appealed to the ombudsman and FCA because they are unable to pay back loans and the rolling over of interest becomes impossibly high.

Politicians have joined the fray and the Church is now in the mix. Payday lenders have to contend with a tarnished reputation and a few payday lenders have been in the spotlight for shady business practices.  Some unfortunate people have taken out multiple loans in an effort to pay off one loan with another loan and there is general sympathy for them. But, let us cut through the hype:

You and you alone, are responsible for your payday loan debt!

You should not have taken out the payday loan if you could not pay it back.  Payday lenders are now required to thoroughly check your credit rating before they lend you any money. Payday lenders must also cross-check with other payday lenders to make sure you don’t have loans piling up all over the country. Even if you apply online you will be checked before you are approved for a loan. If, after all the checking, you are approved for a payday loan that you cannot afford, there is only one person responsible and that is you.

It is impossible to payday lenders to get it right every time. Often, when people are applying for loans they are desperate and may hide the truth.

Payday loan scams

Unfortunately, if you get caught in the net of a payday scam by dealing with lenders who are not legitimate registered lenders you have only yourself to blame. Mainstream legitimate lenders offer upstanding products. It is incumbent upon you to do your own checking. Make sure the lender you propose borrowing from is registered and if necessary check with the FCA to ensure the company is legitimate. For those of you who do not have a payday coming up, don’t borrow money since you will probably not be able to pay it back.

Payday lenders offer short-term unsecured loans on the understanding that they will be paid back on your next payday. They are genuine lenders willing to loan you money in your time of need but they are not your family or friends, they are in business and they must be paid back on time. Before taking out a loan make sure that you are able to repay the loan and that you are dealing with a registered lender.

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