Nov 07, 2013 Simon Williams
During the years of the global recession, there wasn't a lot of criticism of the short term lending industry. Instead, many consumers and organizations alike focused their complaints on the government and high street banks, because they stopped allowing people to borrow - at least, that followed for anyone who didn't have perfect consumer credit at the time.
As these years passed, the alternative finance sector was the only realm that gave financial hope to the masses who had made economic mistakes in the past but needed access to credit immediately. These people's less-than-stellar credit could have been for any number of reasons, including unexpected medical bills, car repairs or other possibilities.
However, now that the economy of the United Kingdom is well on its way to picking itself up out of the gutter, the focus is - wrongly - on the short term lending sector, and will likely be that way for some time, experts say. Critics have been claiming, especially recently, that short term lenders take advantage of their clients and allow them to sign up for borrowing before they know the terms and conditions. Meanwhile, nothing could be further from the truth. These businesses were essential for many people trying to keep their heads above water for some time, and nothing has changed.
According to the London Evening Standard, this has to do with the fact that lending in the nation is set to be ultra-cautious for the next decade. Perhaps this will introduce more consumers to the perks of short term lending when traditional banks slump. The news source said this lag should happen partially because business lending on the part of the high street virtually hasn't changed since the recession.
The effects should trickle down to consumers, the newspaper indicated, which might suggest a bigger focus on alternative loans if expected costs arise in the near future. After all, the Evening Standard noted that people with plenty of cash resources will likely be fine, but those without will need help soon when making big purchases.