LEARNING MORE ABOUT THE CONSUMER FINANCE ASSOCIATION

Some payday loan companies choose to register with various watchdogs that outline clear standards on how they believe short-term lending should be operated. If you are looking for a reliable and a legitimate company to get a payday loan from, ensuring that your potential lender is a member of a body such as the Consumer Finance Association can help. In this article, we are going to learn more about the CFA and what they stand for when it comes to payday loans.

The Consumer Finance Association believes that payday loans can be highly beneficial for those who simply need a little cash advance to see them through until the next payday. Unlike many other loans which can be drawn out over quite a long period of time, the extremely short-term nature of these financial agreements can ensure that the process does not leave the consumer contending with high levels of repayment that can be directly associated with the interest rates that some people face.

The CFA have leaflets which tell consumers who are looking to learn more about payday loans that they only accept companies which believe in offering high-quality products where customer service is at the heart of their approach. This is because of how communication can be vital in ensuring that a consumer knows all of the different advantages and considerations which need to be made with payday loans.

Even though the Consumer Finance Association does recognise that some consumers can benefit from short-term payday loans, they are working towards the interests of the consumer – not the companies who are a part of their operation. The CFA wants consumers to save money and to make sound financial decisions, and one of their aims is to reduce the number of people who are mistakenly choosing payday loans when their needs are more long-term.

Where payday loans are an ideal choice, the next priority is to ensure that all of the information which a consumer needs to know is crystal clear, whether it is from the regulatory body themselves or from the company which they might be planning to transact with.

Of course, checking that your payday loan company is a part of the CFA is not the only option available to you, as there are a number of different bodies which a business might be affiliated with that can give you the same assurance of quality. For example, the British Cheque and Credit Association or the Consumer Credit Trade Association could be just two of the things which you can look for in finding a favourable lender.

Ever since the recession, there has been more emphasis on the standards that payday loan companies abide by – particularly because of how the credit crunch was partially caused by lenders who gave money to people who couldn’t afford to repay. There are hopes that with more stringent checks and higher standards (with more of an emphasis on trust), can make the availability of short-term credit more achievable for everybody.