How to know if a lender is a responsible lender
Responsible lending is one of the areas of consumer finance that the Financial Conduct Authority (FCA) is focusing on. This is going to be a win-win situation for consumers because it means that consumers get better financial deals from better payday lenders. There are a few signs that you can see that show that your lender is responsible and not a rogue lender that doesn’t adhere to the rules.
1. A Responsible Lender is aware of data protection
In any transaction dealing with the Internet, data protection has to be number one. Your data is really important especially if it involves your address and your phone number, two nuggets of information that lenders will ask for so they can get in touch about your loan. A responsible lender should have a section explaining their role with the Data Protection Act that you can read to learn more. A general rule of thumb is that your data should never be shared with a third party without your consent – always remember a responsible lender will not share your details with anyone else.
2. HTTPS Secure
HTTPS Secure is a method of accessing a website in a safer way compared to other websites. This gateway tends to be used when you are entering passwords into a social network login for example or to log into your email. Responsible lenders can opt for HTTPS Secure to ensure that their customers can input their data for payday loans in a secure way so that this data is not compromised. There is always new technology and HTTPS Secure is the latest in security for online usage and transactions.
3. Trust Logos
Trust logos are logos that a company has that shows it has credibility for security and within its industry. These can be anything from a security certificate logo to an industry association logo. Payday lenders that are responsible can be part of organisations like the Credit Services Association and the Consumer Finance Association. You will find trust logos at the bottom of the homepage or at the bottom of most pages on the website. Trust logos help consumers make better choices about which lender to go with.
4. Brand Visibility
Responsible lenders tend to have a profile in the press and social media. Responsible lenders are focused on increasing awareness about money and spending, so chances are a responsible lender has a track record and it has a brand identity that you can connect with. Make sure that the lender you choose is a company that has plenty of customers, that newspapers have written about or one that has a presence on social media sites like Facebook and Twitter.
5. Interest Rates & Repayment Calculators
Interest rates decide how much you will be paying back from your payday loan. A responsible lender will always make it clear what your interest rate is. A sign of responsible lending is including a free repayment calculator that you can use on the website to see how much you will be repaying.
With these five pointers, it is easy to choose the right consumer finance lender for you. Always opt for a responsible lender for a smooth experience when borrowing money for your life.