Payday Loans often carry a stigma that the APR% (Annual Percentage Rate) is quite high. Alas, the APR quoted on Payday Loans is frequently misunderstood and is not a true measure of the quality of this loan type.

An APR is a rate that is charged for credit that is repaid over a substantial period. As the average Payday Loan is outstanding for less than 30 days, the APR quoted looks extremely high, due to the short period of the loan, inherent risk and setup costs.

Payday loan providers are regulated by the FSA and are legally obliged to quote an APR, which can quiet often cause some confusion. The APR does not affect the total amount repayable on your next Payday. The MEM Consumer Finance Ltd service charges a fixed rate for one month Payday Loans.

APRs are impossible to use as a tool for comparing Payday Loans against other cash advance needs, such as bank overdraft facilities, store cards and credit cards.

Unfortunately, APR is inappropriate as a measure of Payday Loan fees. Nevertheless, once you apply for a loan, you will be presented with the resulting theoretical APR in order for you to be able to compare this APR with other short term money lending solutions such as loans, credit card advances, and other options.

Pay Day Advances have been investigated by the Office of Fair Trading who indicated that the competitive market worked 'reasonably well ...  complaint levels are low, and there is evidence that for some products, lenders do not levy charges on customers who miss payments or make payments late.'