Payday loans

Summary

It could be a scam if you’re asked by a lender to pay a fee before you’re offered a loan. It might also be a scam if you’re asked to pay the fee quickly or in an unusual way - like with vouchers or with a money transfer. You should always check if your lender is authorised by the FCA before you take out a loan. You might be asked by a credit broker to pay a fee before they help find you a loan. There are rules they must follow, and you should also always check they’re authorised by the FCA. Make sure you shop around for the best deal. Online payday lenders must publish their deals on at least 1 price comparison website so you can compare their deal with others. The price comparison site must be regulated by the Financial Conduct Authority. You can check if a price comparison website is authorised on the FCA website. Make sure you use the company's name rather than the website name when checking - it'll usually be on their homepage. When you apply for a loan, before lending you any money, a lender should check whether you’ll be able to pay it back. This means that, for example, the lender should check you’ve got enough money coming in each month to be able to pay the loan back. The.

Key information

• •More about stopping debit and credit card payments
• •More information about help with debt
• •More about borrowing from a credit union
• •More information about bank overdrafts
• •More about help from your local authority
• •Get help with budgeting or dealing with debts
• •Making a complaint about a payday lender
• •Different ways of borrowing money
• •the Consumer Credit Trade Association (CCTA) at: www.ccta.co.uk
• •the Finance & Leasing Association (FLA) at: www.fla.org.uk
• •It could be a scam if you’re asked by a lender to pay a fee before you’re offered a loan.
• •It might also be a scam if you’re asked to pay the fee quickly or in an unusual way - like with vouchers or with a money transfer.

Practical guidance

• •Source: [Payday loans](https://www.citizensadvice.org.uk/debt-and-money/borrowing-money/types-of-borrowing/loans/payday-loans/taking-out-a-payday-loan/)

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