Banking Scandals Are Matter of Concern to Consumers into Emergency Cash, Payday Loan Advances

Payday Loan Advances Have Risen in Recent Years for Emergency Cash

Once again in the UK, banking scandal this week, Conservatives and Labour parties are in a struggle to sort out a solution to it. Conservatives are the natural supporters of the financial institutions while Labour party is held instrumental in allowing the scandals to happen. Whenever big scandals happen it shows that private players, Capitalists and other people have their legitimate participation in it. For instance, Barclays and Libor who did enter to bait inter day lending prices and were held contempt by law ministry. Similarly BA has done price-fixing on the interest rates that ruined the big investors in the New York from time to time. However, scandals affect other sections of society that are connected with banks and financial institutions. The unemployed youth, senior citizens who are not the breadwinners get into scuffle with banking instruments and face acute difficulties in getting emergency loans from banks on unsecured personal loans. Banks began to cap the short-term lending due to lack of security by following the strict regulations and as the result these low income groups turn to payday loan advances. They have become relatively easier to obtain because of various reasons. The Payday loan lenders have come up with wonderful schemes that does benefit in form of emergency cash to make quick payments of pending dues. As these payday institutions do not make a check of consumer's credit history they are colloquially referred as 'no check payday loan'.

Government Measures Can Reduce ‘Emergency Loans’ of ‘no Check Payday Loan’

With the Capitalism in dominance, in the UK, will there be a systematic approach in protecting citizens from the banking frauds to which people are getting into a wheel of banking fatigue. If something fast is not done, then in the next ten years a numerous frauds and scams will occur. People will be found in a fix unable to make judgement on taking emergency loans, short-term or long-term whatever may it be. Certain changes will systematically set things in order and low living sections in the society can take a deep breath to relief. Tax reliefs and government subsidies are first option to protect capitalist and industries while they are most likely in a fragile state of affairs. Does the same kind of help is extended to the low profile and jobless groups? It should be doubted otherwise why do many people end up knocking the doors of the payday loan lenders? Improper support to the unemployed by the government is due to lack of funds to operate businesses and in addition to this, banking frauds, scams, and price fixing on interest rates have slashed the profits of companies and affecting the economy of the country. Payday loan advances have thoroughly dominated the short-term lending markets because they are easily available and emergency cash on time can stop credit score of borrower from getting it affected. Although do warn borrowers about lending terms and conditions, the emergency loans to cover the immediate expenses do blinds borrowers' foresight. In order to control money and liquidity flow from and into banks, government should not allow frequent bail out to banks, private and public companies because these are the institutions are in running due to taxpayers' money. In order to set right the banking system in order, the Bank of England has pumped up funds to regularise the cash flows in Banks and now it is not determined to do it so, it does not want to risk the taxpayers' money. Private sector has made an investment of 100 billion pounds and this will force the taxpayer to pay back 300 billion pounds over the coming next three years. At the same time, ‘no check payday loan’ lenders government does not want to enforce greater competition and choice because companies are siphoning smaller companies on the concept of competitive advantage and also companies are downsizing workers for effective corporate building. Therefore, government will have to cap regulations and set eye on financial institutions to make every section to benefit otherwise it would be vulnerable.