UK Payday loans can be applied in two ways-
1. Payday Loans by lending source. In this system, loan seeker approaches to the lender's shop directly or apply through their online webpages. Lender's process the loan quickly and inform the decision to the applicant through email or SMS. If they require some more papers they call for it. Once lenders have satisfaction about suitability and affordability of the borrower, they may approve the loan. Lender will send the approved money directly to borrowers bank account.
2.Payday Loans through Brokers. Here borrower routed through middle man called "Brokers". These brokers are well authrised by FCA in UK and working as agent of the direct lenders. One broker is attached to a group of lenders. Brokers advertise about the benefits of payday loans through them, most of their promises are false and not permitted in UK payday market by FCA. Borrowers should avoid to fall in honey trap of slogans like "Payday Loans No Credit Check Direct Lenders", "High Acceptance Loans No Credit Check", "High Acceptance Loans Direct Lenders", High Acceptance Loans Bad Credit" etc. All above phrases are fake and impossible in UK payday. In Following lines I will try to explain one by one why above promises are only advertisement stunts.
Payday Loans No Credit Check Direct Lenders- "No credit Check Loans" are not available in UK, after FCA new regulations, working margin on lending business fallen sharply. Many lenders have already left the market due to heavy loss, as FCA has cap in interest rates and penalty both. Now lenders have to work with maximum interest rate 0.8% per day.
Lenders do not wanted to take high risk on bad credit borrowers. Now they compulsorily perform credit check to know past loan history of the borrower. Also FCA has made it mandatory for lenders to declare their responsible lending policy, which means they should lend to suitable applicant only. To judge suitability of borrower lenders go through applicant's present and past financial records carefully.
High Acceptance Loans No Credit Check - As above we have discussed that now loan approvals without credit check are not possible. Let us take keyword "High Acceptance Loans", No one can guarantee about loan acceptance without appraising applicants details. If person with good credit score and working for higher wages then naturally Loan approval chances will be high. On other hand if loan applicant with bad credit and employed with lower salary then who can guarantee for high acceptance loans.
High Acceptance Loans Direct Lenders- Now take another phrase "Direct Lenders", ultimately loan amount will be disbursed by lenders only, then why to highlight this. Because the brokers knows that now borrowers are smart enough and they are searching for their funding with direct lenders only, so they are misquoting or misusing above phrase.
Brokers are get paid commission from lenders for the loan lead sold by them. Brokers will try to sale lead to highest paying lender and this will be additional burden on borrowers only. Also broker wait for some time to get maximum bidder for this lead, this will delay the loan.
From above discussion it is clear that "payday Loans Direct Lenders" is valid search by borrowers in order to save time and money.
Representative Example: Borrow £250 for 90 days. Total amount repayable is £411.63 in 3 monthly instalments of £137.21. Fixed interest rate of 292% per year. 1272% APR Representative.