Direct Lenders – What They Offer

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Direct Lenders What They Offer
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THERE ARE DIFFERENT TYPES OF LOAN LENDERS
OPERATING WITHIN THE SHORT TERM LOANS MARKET.
THEY VARY IN THE TYPE OF PRODUCT THEY OFFER AND
ALSO THE ACTUAL SERVICE THEY PROVIDE. IT IS
IMPORTANT TO UNDERSTAND HOW DIRECT LENDERS CAN
PROVIDE A VERY DIFFERENT SERVICE TO OTHER LENDERS
OF A SEEMINGLY SIMILAR NATURE.
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 THE CONCEPT OF BORROWING FROM A SHORT TERM
LENDER IS NO LONGER AN UNCOMMON OCCURRENCE WITH
MANY CONSUMERS REGULARLY USING THIS MARKET TO
SATISFY A MONTHLY REQUIREMENT TO BOOST INCOME.
SEVERAL YEARS AGO THE IDEA OF USING SUCH A LOAN
WAS UNHEARD OF UNLESS THE SITUATION WAS
CONSIDERED EXTREME AND THE CONSUMER HAD NO OTHER
CHOICE.
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THANKFULLY AS TIME HAS PASSED AND THIS TYPE OF
LENDING HAS BECOME MORE PUBLICLY ACKNOWLEDGED,
THE UNDERSTANDING OF WHAT IS ON OFFER IS GROWING
BUT AS IVE SAID THERE IS STILL A WAY TO GO
BEFORE THE CONSUMER TRUST IS FULLY SECURED.
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SADLY THE MORE POPULAR PRACTICES OF SOME OF THE
OLDER AND DATED  LENDERS MEANT EVEN THE DIRECT
LENDERS WERE BRANDED AS EXPENSIVE AND NOT
CONSUMER FRIENDLY IN THE PAST AND FOR THE MOST
PART THIS WAS VERY MUCH JUSTIFIED. 
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 IN THE PAST THE PRACTICES OF THESE LENDERS WAS
SHOWN TO BE AGGRESSIVE AND NOT IN KEEPING WITH
THE UNIVERSAL UNDERSTANDING THAT A CUSTOMER
SHOULD BE, AT THE VERY LEAST, TREATED FAIRLY.
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THESE LENDERS DEMONSTRATED PRACTICES WHICH WERE
LESS THEN FAVOURABLE WITH ITS CUSTOMERS AND
ULTIMATELY HELPED TO FORGE BETTER REGULATIONS AND
GUIDELINES WHICH NOW FORM THE BASIS OF THE MARKET
NOW IN EXISTENCE. IN THE PAST THE ONE MONTH LOANS
ON OFFER WERE EXPENSIVE AND TOUGH, LETS EXPLORE
WHY.
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WHEN THE MARKET FIRST EXPLODED INTO LIFE ABOUT 8
YEARS AGO THE LENDERS OF THE TIME WERE IN CONTROL
AND THANKS TO PROVIDING A MEANS TO AN END (WHICH
WAS THE CASE FOR MOST CONSUMERS USING THEM) WERE
ABLE TO SET THE STANDARDS OF THE PRODUCT AS THEY
WISHED. THIS MEANT THINGS LIKE THE COST WERE IN
THE COMPLETE CONTROL OF THE LENDER. AN EXAMPLE OF
THIS IS HOW THE INTEREST WAS AND IS TYPICALLY
BILLED TO A ONE MONTH LOAN.
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IN MOST CASES THE LENDER WOULD CHARGE A STANDARD
AMOUNT OF INTEREST FOR THE AMOUNT BORROWED
WITHOUT TAKING INTO ACCOUNT THE PERIOD OF TIME
THE FUNDS WILL ACTUALLY BE BORROWED FOR. GIVEN
THAT SUCH LOANS, AS THE NAME SUGGESTS, REQUIRES
REPAYMENT TO BE MADE ON THE FORTHCOMING PAY DATE,
THIS MEANT A CUSTOMER WITH THE LOANS 15 DAYS
WOULD PAY EXACTLY THE SAME AS A CUSTOMER WHO HAS
THE LOAN FOR 30 DAYS.
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THERE WERE OTHER SOMEWHAT UNFAIR COSTS ASSOCIATED
TO THESE LOANS, NAMELY FEES, OFTEN THERE WAS A
FEE FOR APPROVING OR DEPOSITING THE LOAN, SUCH AS
A 10.00 FEE IF A CONSUMER WANTED THE FUNDS THE
SAME DAY. OFTEN LENDERS WOULD OFFER AND IN SOME
EXTREME CASES AUTOMATICALLY EXTEND A CONSUMERS
ACCOUNT AS WELL.
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AN EXTENSION MEANT ONLY THE INTEREST APPLICABLE
WAS PAID AND THEN THE FULL BALANCE, INCLUDING
ANOTHER MONTHS INTEREST, WAS THEN DUE ON THE
SUBSEQUENT REPAYMENT DATE. THIS WOULD MEAN
CONSUMERS COULD FOR MONTHS ON END MAKE REPAYMENT
AND NEVER ACTUALLY REDUCE THE AMOUNT THEY OWE.
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ALL IN ALL THE LOAN PRODUCT CLEARLY BECAME DATED
AND NEEDED SOME INTERVENTION FROM GOVERNING
BODIES TO ENSURE WHERE THE PRODUCT WAS STILL
BEING OFFERED, IT WAS FAIR AND CONSUMER FRIENDLY.
THESE ARE JUST SOME EXAMPLES OF HOW THE PRODUCT
ITSELF CAN OPERATE BUT AS I SAID IT IS ALSO
MASSIVELY IMPORTANT TO UNDERSTAND OF THE
REMAINING LENDERS, WHO SHOULD BE USED BY
CONSUMERS.
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THE FUNDAMENTAL DIFFERENCE BETWEEN A DIRECT
LENDER AND BROKERS ARE THAT DIRECT LENDERS ARE
RESPONSIBLE. THE OTHER LENDERS AVAILABLE TEND TO
BE LOAN BROKER. A BROKER WILL ASSESS THE
INFORMATION SUPPLIED IN THE APPLICATION AND THEN
SUGGEST OTHER SUITABLE LENDERS WHO HAVE ALREADY
PREVIEWED YOUR INFORMATION IN MOST CASES. THE
BROKERS ARE IN EFFECT THE ONES TO AVOID. THEY
WILL TYPICALLY CHARGE A FEE FOR THEIR SERVICE AND
THIS SERVICE DOES NOT EVEN GUARANTEE A LOAN
WILL BE GRANTED. 
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THE FEE CAN BE UP TO 80.00 AND THIS IS CHARGED
AT THE POINT OF THEM SUBMITTING THE SEARCH TO
FIND THE CONSUMER A SUITABLE LOAN, A COSTLY
OPTION FOR SOMEONE WHO IS IN NEED OF A SHORT TERM
LOAN IN THE FIRST PLACE. ULTIMATELY I THINK IT IS
IMPORTANT CONSUMERS ARE AWARE OF THE FACTS AND
ARE ABLE TO MAKE AN INFORMED DECISION REGARDING
THEIR BORROWING NEEDS, STICKING TO THE DIRECT
LENDERS WILL HELP IN THIS PROCESS.
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For More Information
www.pacific-odyssey.co.uk
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Thank You