A great step forward for payday loans

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There can be few financial products that have had such bad publicity as payday loans. Whether you have had one or not, you will be aware of these loans which offer a bridging loan to get you through until your next pay day. The premise is simple, you go to the site, select how much you want to borrow and for how long, it tells you how much you will pay back next time you get paid and the cash lands in your bank sometimes within minutes.

This all sounds great on paper, but the horror stories keep coming. Many complain about the extortionate representative interest rate, that in reality never comes into play as you don’t borrow money for any more than a month, never mind a year. One area where they do fall down, however, is in the fees for late payments. This is the main complaint with payday loans as these charges just keep adding up and before you know it you can owe thousands.

Now there is a new kid in town called Sunny, who guarantee there will be no late fees or initial funding charges. There is, of course, a fun advert to get the message across. We see a dark, gloomy payday loan office and the phone rings. When the receptionist answers it the caller asks if they have the Sunny no fee guarantee. Her assistant goes looking for it and reads out to her that this means there’s no late fees, no funding fees and that you only pay interest on what you borrow.

She tells the caller they don’t do it and he hangs up. Cut to guy sitting on the sofa who puts down his phone and his tablet, on which we see the sunny logo. Maybe now payday loans will be accepted for what they should be; a valuable stepping stone so see people through the month.