Surrey, United Kingdom (4th July, 2013) – Varooma, the cheapest logbook loan provider currently available in the UK, comment on recent industry calls for change.
Payday loan firm Wonga have increased their advertised interest rate for payday borrowing by 1600%, leaving their customers facing a staggering total APR of 5853%.
Whilst it is not unusual for pay day lenders to charge huge borrowing rates, this new figure of over 5000% has led to calls for tighter regulation right across the industry.
The OFT have repeatedly warned lenders who make up the 50 strong firms in the payday marketplace that they must improve their day to day operations. It is not acceptable to grant loans without the proper checks and balances.
A recent study highlighted the following concerns over lending policy:
– Irresponsible lending to people that are drunk
– To under 18’s
– To the unemployed
– Lending without checking payments are affordable to the customer
– Rolling over short term loans multiple times increasing interest rates further
– Using heavy handed tactics to chase debtors
The payday loan market has historically always charged far higher rates (1000% APR to 5000+% APR) than those offered by logbook loan lenders, which range from 178% APR to 400% APR.
Dan Gale, spokesman for Varooma, believes it is important that consumers have access to clear information concerning the products on offer and that regular checks are made to provide competitive rates amongst lenders:
“We have made clear on our website that we are fully committed to offering consumers a real alternative to payday loans. We are always looking at ways we can reduce our rates and provide a better loan product to the consumer.”
For more information on Varooma and their logbook loans in the UK, visit their website at http://www.varooma.com/
About Varooma:
Varooma is the cheapest provider of logbook loans in the UK and allow borrowing of up to 70% of the value of their car. Committed to responsible lending, Varooma checks all of their interest rates every day to ensure their customers receive the very best price and receive their money in as little as 2 hours. Varooma never undertake credit checks and customer’s receive their logbook back immediately after the loan is repaid.
