When you need money very quickly, a short-term loan can help you. There are many companies like PM Loans that can give you these loans, but you should be very aware of the risks before you apply for them.
I am giving PM Loans reviews and also i will talk about is pm loans legit. and the warning of FCA on pmloans.co.uk
What are PM loans?
PM Loans is a company that gives short-term loans and cash loans. People can get these loans for as little as £50 and as much as £1500. They have 12 months to pay them back. They say in their ads that they can help people very quickly get money.
The Red Flags: Customer Complaints and FCA Warning
PM Loans can look like a good idea, but there are many big problems, like:
- Negative Customer Reviews: There are many online reviews and comments from customers that are not good. like.
- Borrowers get many unwanted calls and texts after applying because of aggressive marketing.
- Being moved to other lenders with possibly different terms is known as “bait and switch.”
- Concerns about the legitimacy of the company is real.
- Warning from the Financial Conduct Authority (FCA): The FCA, which is in charge of overseeing money matters in the UK, has sent out a warning about a “clone firm” that goes by the name PM Loans Ltd. People in the UK are being targeted by this illegal company that says it is a real loan. This link will take you to the warning.
The FCA says that people should only do business with licenced financial firms and check their standing on the Financial
The High Cost of Short-Term Loans
Short-term loans have very high interest rates, even if PM Loans is a real company. The annual percentage rate (APR) on these loans can go over 1000%. This means you might have to pay back a lot more than you got for a small loan.
Example: Let’s say you want to borrow £100 with a 1000% APR for one month. With interest, the total amount to be paid back would be £183.33.
Alternatives to Short-Term Loans
But before you think about PM Loans or some other similar loans, you need to look at this.:
- Credit Unions: Credit unions are non-profit banks that are more likely give you lower loan interest rates than cash lenders.
- CDFIs, or Community Development Financial Institutions, help underserved areas get the money they need by offering loans with open terms and low interest rates.
- Government Assistance Programmes: There may be government assistance programmes that can help you with things like rent or services.
- Talk to your creditors: Telling your creditors about your situation and looking into payment plans could help you find more easier ways to pay back your debt.
- Sell Unused Items: If you need cash very quickly, you could sell things you do not need online or at a pawnshop.
Last lines
It may look like PM Loans UK is a very quick fix, but the high cost, customer concerns, and FCA warning are all big red flags. Before taking out a short-term loan, see all the other options also and make sure you know how much it will really cost you to borrow.
Additional Resources:
- Financial Conduct Authority (FCA): https://www.fca.org.uk/
- Money Advice Service: https://www.moneyhelper.org.uk/en
- National Debt Line: https://nationaldebtline.org/
Remember that this blog is just for informational reasons and should not be taken as financial advice.
You can also visit some more pages of our website for more information of different loans.