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Why Payday Loan Criticism Should Be Taken With A Pinch Of Salt
Payday and short term loan companies have come under much criticism since operating in the UK. The high APR and debt collection practices have been scrutinised by customers who have defaulted on their loan who do not agree with the business morals.
Short term loan companies are based purely online and offer a simple application process for customers to receive £75 – £750 instantly in their bank accounts. All companies will offer similar interest charges with APR reaching in excess of 3000%. This figure is extraordinary high and needs some research to realise it is not as high as it seems. Cash Genie has differentiated itself from competition by promoting its responsible lending policy; the company offers a transparent service and prides itself on creating an excellent customer relationship and is committed to lending responsibly to customers who can pay back the loan. As part of this, the company urges customers not to take out a cash advance if they know they will not be in a position to pay it back at the end of the month and asks them to read the terms and conditions before the loan is deposited. However, like all short term loan lenders bad press will be posted about Cash Genie from people who default on their loan.
The main source of negative press is from customers who have used a payday loan company, do not pay the loan back and consequently build up charges on their account. Customers share experiences on consumer forums about company practices. The main topic of post is the late charges along with customer service complaints. Cash Genie warn customers of late charges and urge customers to contact the company before their due date if they will not be able to pay the loan back on time. The company will try to contact their clients in an attempt to get the money back, however the customer service team are here to help. Cash Genie offers a free rollover service and can set up a payment plan for individual customer needs to ensure both parties are happy. Excellent customer service is crucial in order to create a competitive advantage within the industry; the company knows that by providing an exceptional service it is more likely that they will receive the payments on time. However, when customers make fraudulent applications in the knowledge that they are unable to pay back the loan and do not answer phone calls then a debt recovery team is contacted in order for Cash Genie to receive the payment. A company operates as a separate legal entity, just like a human being. When someone borrows money from another person, it is expected that this loan is paid back. This is still the case whether it is a person or a company lending the money. Within this industry , the company-customer relationship is key to receive a loan payment, Cash Genie builds on this aspect to ensure customers receive an excellent service.
Consumer forums present a customer perspective on a specific company. The forums are rated highly by search engines and usually appear within the top 3 of search results when the company name is searched. Advice is given on the forum websites, letter templates are provided to send to the company in question and it gives a place for consumers to share experiences, customers can therefore create a voice in the knowledge that they are not alone. However, more and more customers are viewing these sites to acquire information on what the company is like. It has been argued that the customer views presented on these websites are unbalanced and do not give a true representation of the ethics, morals and practices of the company in question. This is because the posts are one sided from consumers who have defaulted on the loan and are in debt with the company. Customers who have good experiences with the company do not have a need to post, therefore positive comments are rarely posted on consumer forum websites. Less than 0.01% of customers will post on these forums and the majority of posts are posted by a small number of people. Evidence of personal attacks on certain members of staff can also be seen on these websites. Because the website is ranked highly on Google, potential customers of short term loan companies could rely on these posts and may not borrow from these companies.
Cash Genie operates a high standard of customer selection, meaning the company will only lend to customers who are able to pay the loan back on time and fit their lending criteria. The service is transparent and all charges are shown upfront. Research on companies, such as Cash Genie, should be performed however posts on consumer forums and negative press across the industry should be taken with a pinch of salt.
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Cash Genie is an online based lender of short-term loans. The loans range from £75 – £750 and can be deposited in customer’s bank accounts on the same day as the application.