Payday loans have been vilified more than just about any other personal finance product ever. Borrowers who should not have been borrowing were. And lenders were targeting those people when they should have behaved more appropriately. The impact of the FCA’s intervention has been dramatic. Both lenders and borrowers have left the market with the number of new loans actually made having fallen by nearly 40%. Lenders are ensuring they only lend to those who can afford to repay the loans, and at the same time are doing so in an environment where their charges are capped by the FCA.

The reality is that the industry has cleaned up its act and now performs under the very Guide-150x150watchful eye of the FCA. For those people who do need a short term loan to meet an unexpected need then payday loans are cheaper than they’ve ever been. But don’t be disappointed if your application is declined – it’s simply the lenders protecting you from yourself. May be it’s better not to borrow. May be it’s more prudent to to cut your costs instead.


Our new guide to payday loans explains the new world and how it works. The bad old days have been left far behind. But take care and, as is always the case, ask yourself if you really need to take out that next loan.

Read more about your personal finance options at the Solutions Loans website.