Surrey, United Kingdom (27th June, 2013) – Varooma, the cheapest provider of logbook loans in the UK, comments on the recent regulatory issues surrounding payday lending practises.
The Office of Fair Trading (OFT) has referred the payday lending industry to the Competition Commission because of concerns about “deep-rooted problems with the way competition works”.1
Of the doubts the OFT have with the current market, the two main grievances appear to be that customers found it very difficult to identify or compare the full cost of payday loans. The second stemmed from the barriers to switching between lenders when loans were “rolled over”.
It also expressed concern about the focus on quick loans, which it said compromised affordability checks and meant competition was on the basis of speed rather than price.
Daniel Gale, Operations Manager for Varooma, states that any positive regulation of the credit industry is good for competition and will result in a better deal for the consumer.
“We have always believed there should be better access to clear facts about the full cost of taking any loans across all markets. One of the problems at the moment is the difficulty in finding which provider offers the cheapest rate so that customers can make an informed choice. Many companies display deliberately confusing and inaccurate details surrounding their product to gain a competitive ‘online’ edge over competition.
“Even some comparison sites are not listing companies in order of the best deal, but rather whoever pays them the most per click. Companies often state inaccurate or misleading claims about their financial products and unfortunately the decision for the consumer is greatly influenced by this.
“Varooma are committed to responsible lending, ensuring we always offer affordable repayments only to those in full-time employment. We are very clear about our product and our prices are more than reasonable, giving customers every opportunity and the necessary time to break the payday loan cycle.”
1 Taken from http://www.oft.gov.uk
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, all of their interest rates are checked every day to ensure their customers receive the very best price and they can 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.
For more information on Varooma and their logbook loans in the UK, visit their website at http://www.varooma.com/
Contact:
Dan Gale
Greenlight Credit Ltd
Regus Business Centre
Wellington Way, Weybridge
Surrey, UK
Zip: KT13 0TT
Tel: 0330 440 0101
Email: customerservices@varooma.com