| Type | Private |
|---|---|
| Industry | Financial Services, Consumer finance |
| Founded | London, England (2009) |
| Products | Virtual short-term credit, over text message |
| Website | https://txtloan.co.uk |
Txtloan provides instant short term loans through mobile phone text messaging.[1] The service is marketed as a convenient alternative to payday loans and to unauthorised bank overdrafts and associated penalty charges, although The Guardian called it "a hi-tech version of the 'payday loan'".[2]
How it works: Customers apply online. Once approved and registered (if meeting certain conditions, similar to many UK payday loans), they are given a PIN which they can use to text the company to borrow money. The cash is then transferred into their bank account, typically within minutes.
Txtloan has been criticized in the mainstream media by the BBC, The Guardian, The Independent on Sunday, The Daily Telegraph and The Independent. Their annual interest rate is 414% with representative APR% of 4474%, although the company states that use of representative APR in calculating the cost of short term loans is confusing and states it is a responsible lender and not a long term credit provider. The company's £100 loans are intended for repayment after 15 days; failure to repay on time sends the amount due to £200 by day 45 prior it will be passed to debt collection.[2]