Payday lending is really a type of credit where the borrower provides creditor authorisation to produce an automatic withdrawal
from their banking account. This really is used as security for a short-term loan to be repaid, an average of, on the next payday.
Payday lending in the united kingdom
Payday advances are an existing type of lending in the USA and so they have been growing fast in the united kingdom market over the
last five years since they give you a relatively small amount of cash (usually up to £500) for a brief term, around 2 weeks
(or until ‘payday’). The providers charge a fee for the loan often expressed as an appartment fee per £100 borrowed - frequently
around £25.
Payday advances are now a rapidly growing industry in the uk, with four times as many people utilising the loans
in 2009 in comparison to 2006. Last year, 1 . 2 million people took out £4. 1 million in loans, with total lending amounting to
£1. 2 billion (1).

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