PiggyBank @ www.piggy-bank.co.uk
The service charge per £100 is £12.29 for 7 days or £31.95 over 30. A part of this cost is made up of fees (£6.95) that caters the fast transmission and verification checks. The www.piggy-bank.co.uk site is vibrantly designed with secure logins. The loan processing is conducted from Monday to Thursday (9am/7pm), Friday is (9am/5pm) and Saturday is (9am/1pm). It would be recommended to opt for loans over the full month here whereby their daily rate is more competitive at 1.065%. Flexibility is a notable quality, as seen in being able to extend to 42 days and those £1 increment sums.
This company has plenty of potential, but they didn’t promote their service much over 2013, although they have been advertising much more in 2014. It is a shame to see that the P2P scheme didn’t work well here (or at The Lending Well). From the outside you could imagine it taking off, but the major problems are faced surrounding the loan default rates. Over at Zopa they recently added a blog post highlighting a rate of just 0.03% (despite being predicted at 0.25%). One source claimed that payday loans tend to have rates between 10% and 20% that shows that this lending concept covering subprime clients doesn’t look too good on paper.
