How is the payday installment loan lending industry doing today? A popular surveying group, the Dosh Express, has released its official statistics on the reflection of the public’s view of payday installment loans. Representatives from Dosh Express have found these statistics to be an interesting reflection of the service provided by the payday loan market and believe they demonstrate a largely positive attitude towards short-term borrowing in the UK and even here in the US.
In a survey by Dosh Express and the Consumer Finance Association (CFA), a trade association representing many lenders of short term loans with no credit check, disclosed the following statistics from customer research:
1. 86% of clients would recommend payday installment loans to a friend
2. 96% think the lending practices of payday installment loan lenders offer a convenient way to obtain cash quickly
3. 93% found customer service to be helpful and easy to understand
4. Overall customer satisfaction is 94%
In a market study by the Office of Fair Trading from 2009 to June 2010 it found the following statistics:
1. 94% of customers of payday installment loans come from a household with at least one full time worker
2. The vast majority of customers, more than 75%, are over the age of 26
3. Most payday installment loan customers are between the ages of 26-45
These statistics show that almost a million people have turned to payday installment loans with no credit check to cover their mortgage or rent payments, bank overdrafts and other bills including credit cards. The lending industry of payday installment loans offers small, unsecured loans that paved the way for people to tide themselves over until their next paycheck. These short term loans have continually attracted people who are struggling with low credit scores and who are often denied loans from traditional lenders.
The only problem with payday installment loans is that they come with high interest rates and consumer advocates argue that this high cost may put poor borrowers into a cycle of debt. But despite of this risk, many borrowers are still satisfied with the lending practices of this industry.
The statistical figures provided by Dosh Express, CFA, and the Office of Fair Trading, have proven that the lending services offered by these lenders are a saving grace for those in deep and urgent financial stress.
Nevertheless, rumors of predatory lending practices must not be ignored and the government should continue to secure the welfare of consumers so that those depending on these financial services are protected.