PiggyBank Review 2021 – READ THIS BEFORE Applying!

Searching for a PiggyBank loan today, or are you just hoping to learn more about the quick loan lender?

Well, for the first part, PiggyBank is currently under administration, so you might not get a loan from them. Before sinking in December 2019, PiggyBank was among the UK’s ten largest payday operators. It went administration since December 5^th, 2019, and has suspended issuing of new loans. But the 45,000 customers who owe it customarily continue to pay back the money they owe.

As for learning about it, we have done a comprehensive review that will give you anything you want to know about the insolvent lender, even as the company winds up its operations.

What is PiggyBank?

At one point in your childhood, you must have had a Piggy Bank! Yes, the pig-shaped coin containers. Even if you didn’t have one, but you must have come across it. That’s what inspired the DJS (UK) LTD to name its payday loan wing, PiggyBank.

PiggyBank is a fast and flexible payday loan provider. It offers its loans with a repayment period ranging from 7 days up to 5 months. Extended repayment periods, i.e., from two months, come with monthly instalments constituting of accumulated interest and partial premium repayment.

In July 2019, PiggyBank was locked in a conflict with the Financial Conduct Authority (FCA) over concerns of its affordability checks. The regulator thought the lender was giving customers loans without considering their ability to repay. However, after investigations, FCA gave it a clean bill of health.

Its brief resurgence drove to a halt after it joined the long list of collapsed payday lenders, including the UK’s largest payday lender, CashEuroNet, which owned QuickQuid and On Stride brands.

PiggyBank is currently under administration after it ran into cash flow problems with its investors refusing to pump in more cash.

Features of PiggyBank Quick Loan

Pros and Cons of a PiggyBank Loans

How the PiggyBank Loan Works

While PiggyBank currently doesn’t accept new loan applications, the process was straightforward. The provider streamlined that process to make it stress-free such that you get your instant loan credited to your account as fast as possible.

For starters, you estimate the cost of your loan using PiggyBank’s online calculators. You input the amount you wish to borrow and when you expect to repay the loan. The calculator outputs the total PiggyBank expects you to pay over the desired period. So, with the cost in mind, you proceed to provide your details by filling out the online form.

The loan amount and terms range as follows:

Once PiggyBank receives your application, it has to go through rigorous vetting and affordability checks to ensure they give you a credit limit you can afford in line with responsible lending practices.

PiggyBank lets you know when your loan is under review, and when it has gone through, or if it failed. Approval takes only a couple of minutes, and the money becomes available to you within an hour.  Sometimes the provider asks for more information to assess your application. If that happens, PiggyBank contacts you online or by phone.

The loan comes with a daily interest of up to 8%, but which shall not exceed half of what you borrowed, regardless of how long you stayed with the loan.

Details PiggyBank Demands for an Instant Loan

The PiggyBank online loan application form demand that you provide your name, address, employment, and financial information. Other fields include:

You also have to agree to credit and affordability checks to ensure that you don’t put yourself in debt you can’t repay. As a responsible lender and in line with the regulations, PiggyBank runs credit and affordability checks to ensure you are not impersonating and can afford to pay the amount you are asking. According to the lender, affordability is more critical than perfect credit history.

Types of PiggyBank Loan offers

PiggyBank has diversified its products into three different types of instant loan products. These loans have different repayment periods from 7 days to as long as five months, depending on the amount and the type of loan in contention. But as you are already aware, these loans accrue interest of as high as 0.8% per day.

The three loans include:

What are the eligibility requirements?

Only those who meet specific conditions can apply for a PiggyBank loan. These conditions include:

PiggyBank does not issue loans based on a one-size-fits-all. Every applicant is treated differently based on individual circumstances.

Repayment Plan and How it Works

PiggyBank instant loan applies continuous payment authority (CPA) for its repayment. In essence, it deducts a recurring payment from your account regularly until you completely pay up the loan.

A CPA is a standard option for emergency loan providers. It is quite similar to direct debit but authorizes the receiving company to withdraw the amount they want whenever they want it, without communicating to you beforehand. On the other hand, direct debit has a guarantee on the date and the amount deducted.

When repaying the loan, you settle the entire loan early at any point without suffering any penalties. Of course, early repayment will reduce the amount you pay back as the interest is calculated based on the outstanding balance. So, if you wish to cancel your PiggyBank CPA, you can talk to either your bank or the payday loan provider.

If you can’t pay the loan on time, all you have to do is talk about it, as explained in the next section.

How to Modify Your PiggyBank Loan

Unlike some payday lenders that allow you to hold more than two loans or to top-up your credit up to your qualified loan limit, PiggyBank doesn’t. Even so, you can play around with the system to extend your term with perhaps a different instalment since you qualify for another loan immediately you resettle the outstanding one.

When PiggyBank offers you a loan, they expect you to pay them back as soon as possible but not later than the agreed date. But sometimes you find yourself in a financial quagmire, and you can’t meet your obligations. The company recommends that you reach out to them in advance so that you can renegotiate a workable repayment plan.

The lender also allows borrowers who anticipate failing to pay their loans on time to defer their loans. You can quickly request to delay the loan for up to 35 days through your mobile phone. But this request is subject to an affordability assessment.

The Cost of PiggyBank Loan

Well, you are aware that FCA capped the daily interest rate of payday loans to at most 0.8%. The motive behind this was well informed. Payday loans feel and look easy, but it is until you take one that you will realise that the cost of the loan is a nightmare. Once you choose one, you risk disarranging your finances, even with the FCA capping the total interest capped at half of what you borrowed.

But as much as we may not like payday loans, we go for them anyway owing to our situations. So, considering cost is one of the best ways to avoid the pitfalls. PiggyBank offers these loans based on an individual’s circumstance. But its annual percentage rate (APR) is between 1,255% and 1,698%. So, if you’re considering to take one, though it no longer issues loans, be careful to protect yourself by first considering available cheaper alternatives.

Most people want to think PiggyBank loans and their ilk are a lifesaver to individuals with poor credit ratings. But the truth is these financial arrangements, as incredibly convenient as they seem to get into, are painfully tricky to settle. If you have a bad credit history and no savings, it may be the only option in a financial emergency. Careful, though, it can do a lot more harm than good. It is pretty easy for it to lock you into an ongoing circle of borrowing, as a first loan creates a need for a second, while second creates a reason for a third, and it goes on and on.

The good thing, though, PiggyBank doesn’t allow you to hold more than two loans. It, nevertheless, provide continuous financing by enabling you to take a loan immediately you repay the previous one.

Security of Customer

PiggyBank has served the UK market for a fairly long time. Over the years, there has been no complaint about its handling of customer data. The company has a secure website, and it safely keeps any information you provide in compliance with GDPR 2016.

Your privacy is a key priority, and PiggyBank takes no action without your outright consent, which is why you’ve to agree to affordability and credit checks before they can proceed.

PiggyBank Customer Support

The payday lender has shown a record of impeccable customer service over the years of its operations. Its services have improved over the years, streamlining the application process and speeding up loan approvals. With Piggybank, you can apply online in a few minutes and have the loan in your account and ready to use within the hour.

It is uncommon for lenders to be reasonable when it comes to loan repayments. But PiggyBank understands that sometimes circumstances change. For example, you can lose your job spinning everything out of your control. PiggyBank talks and listen to its customers and create a reasonable repayment plan through its “Responsible Collections” policy. Thus, it is a much friendlier option and a more human place for our customers.

You can reach the customer desk via an email or call within the official business hours to talk to the customer support. It, however, doesn’t include a live chat option.

Verdict – Is PiggyBank legit?

It was legit!

PiggyBank has diligently served the UK market for the years it has been in the industry. But with the wave of dwindling fortunes for payday loan companies, it has joined Payday lenders Wonga, 247MoneyBox, WageDay Advance, and Juo Loan into administration.

While payday loans are an expensive way of borrowing, but with the regulations, PiggyBank and many other players offered quick loans for people with bad credit. But the current trend that has seen more than five payday lenders close shop is particularly worrying as the collapse of the payday loans industry could wide open the market for black-market lenders.

It is essential to carefully examine your financial position and circumstance before you go for a payday loan. As PiggyBank stressed, your credit file isn’t the be-all-and-end-all, only borrow the amount you need and the one you can quickly payback.

FAQ