Payday Loans Company, Umbrella Loans Respond to Criticism Levelled at Their Industry

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Umbrella Loans offer their stance on the payday loans scandal that is currently at the forefront of the British media.

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Umbrella Loans pride ourselves for being an ethical lender, we are a proof that you can run a successful business in this sector without abusing the financial predicament customers are faced with.

The UK’s payday loans industry has been heavily featured in the press in recent months with prominent articles being featured in The Guardian, Financial Times and many other national news papers. Accusations of unethical lending being levelled at many of the companies at the forefront of this industry by disgruntled consumers and in response the Office of Fair Trading has launched in investigation into these alleged practices this week. Umbrella Loans, a payday loan lender based in the North West has outline their stance on likely reforms within their industry and welcome the OFT’s investigation.

With a great deal of negative presses being aimed squarely at the payday loans industry, Charlotte White a director for Umbrella Loans stated her opinion on this matter and outlined the stance that her own company is taking during what could be a potentially major overhaul of their industry.

“In an industry within which there is publicly a large degree of unethical business practices, such investigations welcome companies who practice ethically to stand up above the rest and prove that good business is better business. With a wealth of negative press surrounding payday loan lenders, as well as the launch of this week’s investigation, Umbrella Loans is taking action to stand out from the crowd by taking an ethical approach to the lending of quick payday loans, applying OFT recommendations as standard practice.” – Charlotte White, Umbrella Loans

The mainstream press has taken great interested in the allegations of malpractice by payday loan lenders with The Guardian running another widely read article on the matter last week that was highly critical of one of the most visible companies in this industry.

This week's OFT investigation has been launched in response to claims that a number of same day payday loans companies are lending to vulnerable people with poor credit histories or those who are unable to afford repayments within the agreed timeframe. The OFT has stated that some payday loan lenders are looking to take advantage of those in financial difficulties, and as a result, are actively seeking clients who will miss payment deadlines and therefore have to pay a significantly increased rate of interest.

David Fisher, director of consumer credit at the OFT has stated, “We are concerned that some payday lenders are taking advantage of people in financial difficult, in breach of the Consumer Credit Act, and are not meeting the standards set out in our guidance on irresponsible lending. This is unacceptable. We will work with the trade bodies to drive up standards but will also not hesitate to take enforcement action, including revoking firms’ licences to operate where necessary.”

Presently, the outcome of the investigation is currently uncertain. However it seems likely that before long much tighter control over the payday loans industry will be introduced.

Charlotte White expressed optimism that more stringent rules would help to improve the public image of the industry.

“Umbrella Loans hopes that a tighter set of rules will be put in place after the verdict of the investigation and that this, in turn, will give the industry as a whole a better reputation, with only those who can truly repay being accepted. The aim is to ensure consumers are only using, and being accepted for, such services in a responsible manner, taking out payday loans for the reason they are intended for, as a short term financial solution in cases only where repayment can be made within a 30 day period.”

With the payday loans industry as whole receiving poor publicity Umbrella Loans feels that the OFT’s investigation couldn’t have come at a better time and hopes that the outcome will see an end to predatory lending within their industry.

Further information about Umbrella Loan's stance on ethical lending can be found at

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