How to recognize a legal payday lender from payday loans scams?

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Before considering applying for a payday loan you need to be sure that the loan provider is entitled to offer loans legally in the UK. Since 1st of April 2014 the regulations in the industry are tougher and payday lenders are facing stricter rules and regulatory pressure. There are few checks to make before making a step further in your loan application:
1. The lender or the broker must be registered with the FCA with visible license number on their website platform.
2. Does a credit check – companies and lenders which state that they are not performing credit checks on potential borrowers are more likely to be in the shadow side of the industry
3. Have signed up to the Good Practice Charter which is the industry code.

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