PiggyBank @ www.piggy-bank.co.uk

PiggyBank

The PiggyBank loan brand was formed back in 2012 by DJS (UK) Ltd over at www.piggy-bank.co.uk. On initial launch, this was created as a P2P payday loans product, inspired by Zopa. The Lending Well was another P2P company although they soon closed. This concept also didn’t work out for PiggyBank, although they switched to lend out of their own pocket. This flexible service caters terms of 7 to 42 days. The sums of £50 to £500 can be applied for at first and £1000 is the maximum amount for trusted customers. A nice touch is that you can change the cash amounts in tiny £1 increments.

The current service charge per £100 is £13.79 for 7 days or £33.45 over 30. A portion of this cost is made up of fees (£8.45) that caters the fast transmission and verification checks. The www.piggy-bank.co.uk site is vibrantly designed with secure logins. The loan processing is conducted between Monday to Thursday (8am/7pm), Friday is (8am/5pm) and Saturday is (9am/1pm). It would be recommended to opt for their loans over the full month whereby their daily rate is more competitive since the fees are watered down. Flexibility is a notable quality, as seen in being able to extend to 42 days and those £1 increment sums.

DJS (UK) Ltd has a range of projects running at the moment. This particular brand has potential, but they aren’t one of the most actively promoted services. It is a shame that the P2P scheme didn’t work well here (or at The Lending Well). From the outside the concept is appealing, but the major issue surrounds loan default rates. Over at Zopa we studied a past blog post that highlighted a rate of just 0.03% (despite being predicted at 0.25%). One source claimed that payday loans at a time had rates between 10% and 20%. I would expect this rate to be just a few percent today though.