PaydayUK is a subsidiary of MEM Consumer Finance LTD and offer same day loans from £80 up to £750 via telephone or from their website.
They charge £29 in interest for each £100 you borrow which is £4 dearer than Payday Kong or Payday Bank and £9 more than Quick Quid. Even so, £29 does make them cheaper than many of the other online payday lenders including Wonga and Pounds2Day.
A nice touch is that if your next payday falls within 7 days of you taking out the loan, they don’t settle the debt until your next payday and they don’t add any extra interest on for that extra week.
PaydayUK can have your money in your bank account by midnight as long as you apply before 3.30pm and the loan is approved by 5pm.
To qualify for A PaydayUK loan you will need to be 18 or over, be in full time work, have a take home salary of £750 or more which is paid monthly into your bank account and you must have a debit card associated with that account.
The application process appeared to be quick and easy and we didn’t need to fax or post any further documents to them. Once the initial form is filled in and submitted it took around a minute for us to be told we had been approved.
At this point PaydayUK told us how much we could borrow which they base on your earnings and present expenses. If you accept the loan offer you then give your bank account details so they can send the money and your debit card details so they can collect the debt on the agreed date.
The loan agreement was signed online so the whole process took less than 5 minutes and as promised there were no admin fees, bank transfer charges or any other hidden fees some payday lenders like to spring on you after you have accepted the loan.
PaydayUK is a member of the Consumer Finance Association and as such follow a code of practice that includes responsible lending. Some may not like the fact that PaydayUK decides how much you can borrow rather than you applying for the amount you want but by doing so they are attempting to make sure you can comfortably repay the loan without going short of money next month.
It is this spiraling debt that many of the MP’s who are against payday lenders often point to. The argument being that the lender finds they don’y have enough to settle the debt on their next payday so end up having to borrow again and so it goes on.
PaydayUK loans are tackling this problem head on and should be applauded for their take on responsible lending.
PaydayUK do use the credit bureaus so if you settle the debt on time it will be noted on your file which can help to repair a poor credit history but should you fail to repay on the agreed date, that too will make it onto your credit file and so will damage your file. Bottom line – be sure you can make the repayment on time.
All in all PaydayUK offer an excellent service but it is their attempt to be a responsible lender that makes them stand out from the crowd and gets them their 5 stars. They aren’t the cheapest but neither are they the most expensive. They don’t get the money into your bank account within the hour like some lenders but they do try to get it into your account the same day unlike some and there are no hidden fees unlike some either.