what checks do payday lenders do

winterwhite11

if you apply for a payday loan what checks are carried out?
do they phone up your place of employment to make sure you work there?
do they do credit reference agency checks ?
a girl who is friends with my grandaughter just told me she had a few payday loans and she does not work, never has and she has lots of bad debts..
do they give out these loans without any checking..

InsideInsurance

Different lenders have different processes.

Even within a single lender then normally processes are not a simple straight line but will branch depending on a number of decision points such as if it is your first or subsequent loan, how affordability looks, if they do a CRA check then what comes back from that etc

Apples2

Bare in mind the whole ethos of Payday Loans is to give you money as fast as possible, within minutes in some cases.
If there were more stringent checks, the issuing of funds would be delayed negating the whole point of the loan in the first place.

I'm sure many conduct a quick CRA check and the remainder is on the honesty of the applicant to fill the form in properly (with appropriate warnings about giving false information on the webpage).

In essence, dishonest people take money from bottom feeder lenders, a fair marriage really, difficult to have sympathy in a lot of cases.

DCFC79

winterwhite11 wrote: »

if you apply for a payday loan what checks are carried out?
do they phone up your place of employment to make sure you work there?
do they do credit reference agency checks ?
a girl who is friends with my grandaughter just told me she had a few payday loans and she does not work, never has and she has lots of bad debts..
do they give out these loans without any checking..

If the girl has lots of debts then thats at least 6 years of her life that she will have problems getting loans for say a car or a mortgage.

tibbers

There are 2 that I know don't check certain areas, such as employment, or regular income. I suppose maybe it depends on the amount of loan you are applying for. My Stepson, applied for 2 loans from Wonga and Quick.co.uk. Both these he lied to saying he was employed and had a regular income. He has no money incoming at all. No benefits, nothing. He got a loan on both companies, each £100. Trouble is, he borrowed more. So once they get the loan, they can borrow and borrow. We took drastic action though to stop him doing this... So no, both companies didn't phone the place of work where he claimed to work.....