Irresponsible Lending Guidelines misguide the Customers

Many of us have fallen into the trap of borrowing money from the wrong money lenders. This is a rapidly growing issue which has now started growing into a trend. There are plenty of money lending websites and companies who are luring people and scamming them into borrowing money. Their main goal is to earn profit from their customer’s poor credit status. They provide immediate cash loans to the customers without checking their credit history.

People in real need of money, easily fall into this trap of irresponsible money borrowing. These companies follow irresponsible money lending guidelines which misguide the people. It is imperative, that a person with poor credit history understands that instant cash loan is not a luxury for him/her. The immediate cash is only to meet their emergency fiscal situations, and not for every small need. Only those people fall into the trap of debt, who don’t know how to identify a genuine emergency situation.

The responsible lending guidelines should be :-

Do not persuade the people to take out a payday loan, if it’s not the correct option for them.

Must not target the people who are already in a debt.

Do not encourage the people to borrow more, if they cannot afford to repay.

Must not charge the customers with unnecessary fees or any hidden fees. Always intend to offer the customers a clear understanding of the services. Follow all the legal and ethical marketing practices.

These are some of the basic lending guidelines that every money lending company must follow and stop misleading the people. It is in the best interest of the people and the economy of the country. For more information, visit Nextcredit.co.uk