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Go Cautious on Cheap Loans.
Government Chancellor, Alistair Darling, makes a call for more responsible loans, warning that increasing levels of consumer debt in the UK need to be addressed sooner rather than later.
Here at NiceLoans we have always paid careful attention to the ability of our borrowers to repay the loans they apply for. It's all part of our cautious approach to lending and treating our customers fairly. This new statement by Alistair Darling is a step in the right direction but ordinarily these requests require some real legislation to bring them into effect. Ordinarily we say, because the unusual events of recent weeks in the world's finance markets may be just the catalyst needed to bring about these changes anyway.
It's not uncommon for people to find themselves in need of a loan due to unexpected personal circumstances, either good luck or bad luck and the reason they need a loan may be perfectly understandable. What the Chancellor is warning about, is the lending of cash to borrowers who will obviously have difficulty in repaying their loans or who may be tempted into funding purchases which they cannot really afford.
The Chancellor did however hint that he had no further legislation in mind, saying it really was up to the borrowers and the providers of loans to ensure loans are suitable and affordable. His comment that lenders are advancing money to borrowers without actually checking their ability to repay is not true here at NiceLoans. We always make credit checks on our applicants, helping us to understand our customer's personal situations before we undertake further conversations with them.
Mr Darling also commented on what he calls "cynical" TV advertising, where some companies portray consolidation loans as the easy get out for people in debt. These types of loans are a special case and may not be appropriate for everyone who already has some debt. Careful consideration is always made to assess the benefit of consolidation loans before they are approved.
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