Belmont Thornton Logo
PPI Claims - About PPI

PPI Claim News

Payday loan claims 'can lead to dangerous debts'

Payday loan charges could leave people in a "dangerous debt cycle", members of the public have been warned.

Consumer Credit Counselling Service spokesman Matt Hartley pointed out people who use a payday lender to make a loan claim of £100 will typically have to pay £125 back when they are next paid.

This can leave them "even more short of funds" the next month, he stated.

Rather than use this expensive form of credit, people ought to examine the "underlying cause" of their cashflow problems through budgeting, the specialist added.

The representative also warned against logbook loans, saying they are an "extremely expensive way to borrow".

Mr Hartley said people who are using this funding option should treat it with "great caution".

Debtors who miss payments might lose their car, which could mean they will struggle to get to work and could therefore miss out on a wage, he argued.

The spokesman had previously pointed out shocks to incomings such as unemployment leads a large number of people into "problem debt".

Amir Hussain
Amir specialises in personal loans, consumer debt and debt managementADNFCR-2776-ID-801409844-ADNFCR

Bookmark and Share
Tell a Friend
blog comments powered by Disqus

Enquiry Form

First Name 
Last Name 
Mobile Phone
Home Phone
Address Line 1 
Post Code 
Claim Back Mis-Sold PPI Button

Belmont Thornton Limited is regulated by the Claims Management Regulator in respect of regulated claims management activities; our registration is recorded on the website number 18273

Belmont Thornton Limited is incorporated in England and Wales, Company number 6621233, whose head office at Unit B11, Kestrel Court, Harbour Road, Portishead, Bristol, BS20 7AN and registered office at Harwood House, 43 Harwood Road, London, SW6 4QP.

Belmont Thornton Limited is registered with the Information Commissioners Office. Registration number Z1728023.

Please note that calls may be monitored for the purposes of staff training.

* Belmont Thornton operates on a "No Win No Fee" basis. This means that there are no upfront costs to pay. Our fee only becomes payable on a successful outcome of a claim. A cancellation fee is payable if you decide that having instructed Belmont Thornton to act on your behalf, and after 14 days of signing your Letter of Authority, you do not wish to continue pursuing your claim with us. The cancellation fee is the reasonable costs incurred for the work undertaken. Please see our terms of engagement.

By using our web-site, you agree that we can place the types of cookies described in our privacy policy on your device.Hide