Follow Us on Facebook Follow Us on Twitter Follow Us on Google+ Follow Us on Pinterest Follow Us on Tumblr Visit our YouTube Channel Subscribe to our Feed Subscribe via FriendFeed

Connect With Us

Payday Loan Company Targeting Pet Owners

by Jim ONeil on February 9, 2012

in Payday Loans News

UK consumers use money from payday loans to pay for car repairs and unexpected expenses. They even apply the cash to medical bills for themselves or another family member. If these loans are suitable for medical expenses for humans, there is no reason they cannot be used for veterinary bills for a beloved pet.

A new UK payday loan company has sprung up with just this purpose in mind. Pet owners can apply for a short-term loan with payday lender Petloan in order to pay unexpected vet bills.

Representative loans APR offered by Petloan is 2,120 percent. This may seem like an astonishing amount but keep in mind that the loan is designed to be repaid relatively quickly. Pet owners who cannot or do not want to pay vet bills with a credit card can take a loan of between £50 and £1,500.

The announcement of this new lender comes on the heels of the recent UK report predicting that payday loans may become more popular than credit cards.

Payday lenders have come under attack for their high loans APR, leading consumer groups and some politicians to request government regulation of the industry. Some believe that capping the cost of this short-term financing will protect the most vulnerable borrowers.

According to a recent study by PricewaterhouseCoopers, the limited amount and term of payday loans are appealing to consumers who are hesitant about borrowing during this uncertain economy.

Petloan claims to be the only UK short-term lender dedicated to pet owners. According to a spokesperson for this new payday lender, services are designed for people dealing with the expense of caring for pets. Managing Director Ash Sethi referred to the cost of pet insurance and unexpected bills as an “increasing burden.”

He noted that pet insurance companies are usually not quick to pay claims, leaving pet owners on the hook for the bills.

Mr. Sethi stated that his company provides pet owners with the ability to get the necessary care for their pets without being concerned about cash flow. He pointed out that the services are designed to improve management of cash flow, not push UK consumers further into debt.

As just one example, a pet owner can borrow £200 for a 30-day period, repaying £258 at the end of the term. This equates to an annual interest rate of 352.8 percent.

Just last month, popular payday short-term lender Wonga was called “predatory” after content on its website suggested that students use its financing for purposes like holidays. This is just one example of the scrutiny taking place within this industry. Wonga removed the information from its site and denied targeting students as prospective customers.

Petloan is not focusing on a traditionally vulnerable population but it does have a niche audience. Pet owners may find the financing useful for covering veterinary bills over the short-term. However, they should focus on repaying the loan as soon as possible to avoid additional interest charges and other fees.

Otherwise, a routine vet bill could grow into a major expense.

Comments on this entry are closed.

Previous post:

Next post: