At PM Loans, we are committed to being a responsible lender who acts in the best interests of its customers. This means we have a responsibility to our customers to be open, honest and to treat them fairly. These commitments underpin everything we do and the way we lend money is no exception.
Our Responsible Lending customer commitments are described below. These explain what a customer can expect from PM Loans when they apply for a payday or short term loan with us.
What does Responsible Lending entail?
Responsible lending legitimises the payday loan industry by providing better consumer protection. We do not provide a short term loan if the customer has told us they are in financial difficulties or the credit assessment indicates that the loan would not be repaid in a suitable manner.
Before entering into a loan contract, lenders must:
- Guarantee that the loan product and terms meet a borrower’s need.
- Make sure that the borrower will be able to make good on the agreed-upon loan payments without suffering financial hardship in doing so.
- Not coercing the borrower into accepting any credit agreement.
- Help borrowers make informed decisions.
- Not mislead or deceive the borrower with jargon or vague contract language meant to obscure terms.
- Act with high ethical standards when and if the borrower encounters unforeseen hardship or a breach of contract of any sort.
Before entering into a loan contract, borrower’s must:
- Ask themselves, do they really need a short-term loan?
- Repay the loan in full.
- Ensure the loan aids them in removing themselves from further debt.
- Ensure they have a good credit history.
- Be responsible with money.
How lenders implement Responsible Lending
To protect our customers, PM Loans assess each application on an individual basis to ensure that applicants can afford the loan before it is approved. We wish to be sure that we are not putting our customers in a difficult financial situation.
Credit checks and credit history
As a responsible lender, we conduct a full credit search if applicants meet our lending criteria. By running your application through a credit check ensures that PM Loans fully understand if applicants have had concerns repaying a debt in the past. The outcome of this check will impact our assessment of offering a loan to potential borrowers.