Responsible Lending Policy

We are a responsible lender

Western Circle Limited trading as Pay Day Bad Credit is a responsible short term loan provider in the UK. We are based in London, and we have been operational since 2011. We offer loans between £300 and £1,000.

We are fully authorised by the FCA to act as a direct lender in the UK. We are also regulated by the Consumer Credit Act 1974 and all relevant and applicable consumer credit legislation and regulations.

Our focus is to make our customers the centre of our business. Furthermore, we try our best to incorporate all of the FCA’s principles.

As a responsible lender, our working procedures comply with the FCA’s new guidelines. We are committed to providing a good service to consumers and treating them fairly. We feel that when you take out a loan, you deserve to know exactly what you are signing up for. Therefore, we have prepared a detailed guide to our short term loans and we request that you read it before applying. Feel free to contact us with any questions you may have.

What we do

We are here to provide responsible short term loans to help our customers through temporary financial shortage. We offer total flexibility and transparency, same-day service and complete confidentiality. We actively encourage customers to repay loans as quickly as possible thereby saving them money on interest, as well as allowing manageable payments.

Our loan process is straightforward, clear, transparent, flexible and comparatively quick. Throughout the application process, we will give you all the information you need to make a sound borrowing decision, and will always be available to deal with and resolve any queries you may have, either now or later.

What we need from you

Here at Payday Bad Credit, we believe that financial responsibility is a two-way process. Whilst we aim to act responsibly in all our dealings with you at whatever stage, it is important that you understand the way we work and what you can expect from us. Of course, in order for us to act responsibly, we need you to also be responsible, honest and open with us. In this way, we can then deal with you in a manner that is best suited to your needs, requirements and circumstances.

We will do this by carrying out our routine checks and safeguards, including a credit search carried out through a third party credit reference agency on every application (even if you are an existing customer – since we recognise that your circumstances can change). We want to really help our customers, and if we suspect that a payday loan will worsen your finances rather than help, the application will be declined, in line with the FCA’s regulations.

We trust you to be responsible and to make the best and most sensible decisions before entering into a loan agreement with us. We expect and trust you to enter such an agreement with us only on the basis that you are confident that you can meet your obligations under the agreement and repay any loan in full and on time.

The Payday Bad Credit Loan Process

Keeping you Well Informed: Pre-contract Information

At Pay Day Bad Credit, we try our very best to make sure you understand every part of the loan process, enabling a high level of transparency. Therefore, the amount payable by you under the loan will be shown clearly on the pre-contract information we provide you, and on the credit agreement, so that you can make an informed decision prior to entering into the agreement with us. Our charges and fees are also displayed on those documents, and are set out in full on our website. Have any questions? Please check out our FAQ page for answers, or contact us. Our friendly staff will be more than happy to assist you.

If you comply with the terms of your loan agreement with us, and make all repayments on time as agreed, you will only be required to repay the amount in the loan agreement i.e. the sum advanced, the interest thereon and any fees notified to you and agreed with you in the pre-contract. You will not be required to pay any additional fees.

You will always be encouraged to repay your loan as soon as you can, to avoid accumulating additional interest and/or any other late payment fees.

Missed Payments Policy

We will inform you if you go into arrears and will send you a notice of the amount outstanding, and provide you with the required FCA information sheet to accompany this notice. We will also notify you if you incur a default sum (by way of a notice of default sums).

You will only pay additional charges in the event that you miss a payment or fail to make a payment in full in accordance with your agreement with us, and your account falls into arrears. These charges are set out in the pre-contract information we provide to you, the credit agreement, all relevant correspondence to you from us (normally sent by email) and our website’s charges page.

If you are experiencing financial difficulties, and are finding it hard to make repayments in full and/or on time, we will ensure that we do everything we can to help you, and we will act reasonably, fairly and responsibly in all our dealings with you.

It is very rare that we will allow interest only payments, and will always actively encourage you to pay off as much of the loan as possible each month. We will try to find an alternative way for you to settle your liability to us, such as freezing interest and paying by way of instalments, if and where appropriate.

Dealing with Loans in Default

As a responsible business we are determined to treat customers in default, arrears or difficulties with understanding and consideration. If it becomes apparent that you are in a situation which you are “unable to pay” (as opposed to “can pay but won’t”), we will always endeavour to treat the matter with forbearance and sensitivity until your circumstances improve.

We operate a fair collection policy and we will always endeavour to give you adequate time to resolve any financial difficulties you experience in repaying the loan.

We do not immediately sell debts to allow you the opportunity to arrange a repayment plan.

Repeat borrowing and rolling over

We do not work on the notion of increasing loan amounts to you as you pay off your loans, as this would be classed as irresponsible lending. As such, although our trust in you may grow, we will always perform new credit and affordability assessments on every application.

Dealing with Misconduct

At Pay Day Bad Credit we will never pressure you to take out a loan, or to borrow more money then you had intended. In the event that a member of our staff is found to be behaving (or have behaved) inappropriately in their dealings with you, this may be deemed misconduct, serious misconduct or gross misconduct. Such misconduct will lead to disciplinary proceedings being instigated against (and potentially, disciplinary sanctions being imposed against) that member of staff.

Always Keep in Mind

Our responsible-short-term loans are designed to help clients through a temporary financial shortage and not as a long term borrowing solution. We are not always the cheapest option on the market, and we always encourage our clients to compare our costs with alternative options available to them.

We also recommend that you consider your financial situation carefully before making any decision to borrow money.

The repayments due under any loan agreement may place you under additional financial pressure, and we would urge you therefore not to apply for a loan if you feel that you may not be able to make your repayments in full and on time.

Help us to Help You

Western Circle Ltd trading as Payday Bad Credit consistently undergoes strict procedures (and a periodic review of the same) to ensure our continued commitment to responsible lending for the benefit of our customers and our business model.

This policy was written to help our website visitors understand our business and code of practice. We simplify the language to make it easier for everybody to know who we are, what we provide and how we do it. We encourage you to raise any issues with us by telephone or in writing as per the details on our ‘Contact Us’ page. We will of course discuss any complaints you may raise with us regarding our service, and will seek to resolve any complaints or concerns you may have as per our Complaints Procedure. If we cannot resolve them, we will advise you on how to take your concerns further should you remain dissatisfied.

Representative example:

Borrow £700 for 6 months. 1st monthly repayment of £168.45, 4 monthly repayments of £224.60, last monthly repayment of £112.20. Total repayment of £1,179.05. Interest Rate p.a. (fixed) 185.39%, RAPR 611.74%. Our APR includes all applicable fees. Daily interest is capped at 0.798%.

Payday Bad Credit is a trading style of Western Circle Limited – Company Registration Number: 7581337. We are fully authorised and regulated by The Financial Conduct Authority.
FCA full permission license: 714479
ICO Registration Number: Z3305234

Payday Bad Credit terms and conditions apply.

Applicants must be 18 or over. All loans are subject to affordability, applicant verification and traditional credit checks via various national databases by Payday Bad Credit responsible lending policy. Loan limit maximum of £1,500.

In most cases, loan decisions may take up to 30 minutes during office working hours.
If your bank does not support Faster Payments, funds will be sent to your account the same day as approval so long as you’re approved by 16:30.

Warning: Late repayment can cause you serious money problems. For help, go to moneyhelper.org.uk