Teleloans Review: Why Payday Loans Can Lead to Bad Things

We’re on the endless hunt for payday lenders doing the right thing and Teleloans is one that The Debt Free Community is closely researching.

Often people take out a payday loan with the expectation that they will repay it back quickly, but sometimes that doesn’t quite happy. You then get hit with big penalties and slide further back into deep debt.

We’re here to tell you that it doesn’t have to be that way, and instead, you should re-consider the need for that short-term finance. You might have a genuine claim for financial hardship.

We found that Teleloans funds hundreds of payday loans every week, but are they legit? In our review, we’ll examine if you should sign yourself up for this.

Let’s get into it.

Teleloans Review

You’ve maybe see the slick advertising by some of these payday lenders. They claim things like “Instant cash today” or “No credit checks” to lure you in.

They are hoping that you’ll join their 30% interest rate payday loans where they can make a huge profit off your unfortunate circumstances. It’s unfair…but that’s how it is.

Now Teleloans does some good things. If you need emergency money and you’ve exhausted all other options (including financial hardship declarations) then you might find these to be your last resort.

If you do happen to be in dire straits, then please call the National Debt Helpline who can help you through these troubling times.

Teleloans Review Australia

Customers have left good reviews about Teleloans across Australia, but some of them weren’t happy either. The thing is: They can’t guarantee that you’ll be successful.

So then people leave their negative experience online as a “review” without having experienced the product. In this case, very expensive financing that most people should pass on entirely anyway.

Payday loans can be a living nightmare

Here at The Debt Free Community, we imagine that you’re having a tough time right now. That’s why you’re looking at this payday loan as the solution to your problems.

In most cases, they actually create more problems for their borrowers. That’s because they often are used for addictions or to fund overdue bills or other debt, such as credit cards and personal loans.

Why is that a problem? Well, it’s like fighting fire with a flame thrower. Talk about giong completely backwards on your journey towards stability.

Not only that, but most of these lenders dish out hefty penalties if you can’t make all of those repayments. So you’re then sliding further backwards with little way out.

Like a backwards spiral or whirlpool, going around and around. It’s called a debt-trap and it’s everything we’re against here on this website.

Instant cash for genuine emergencies

We’ll give these lenders some credit by saying that there are times where they can be a god-send to some borrowers, despite their very unfair terms and conditions.

A good example is needing to repair your broken down car for work. You might have an expensive repair bill, and if that’s the case, only borrow enough for those repairs and nothing more. You might even want to ask your boss for an initial payment if they’re flexible with that.

Another one is medical emergencies. Let’s say you need new reading glasses for work or driving but lack the cash. In this case, you might want to consider a payday loan IF you know you can pay it back.

Friends and family should always be the first point-of-call if you’re experiencing these troubling times. You might also want to get in touch with your superfund or Centrelink who can provide advanced payments if you can prove financial difficulties.

Teleloans and ASIC intervention

Did you know that ASIC previously had a close look at the activities of Teleloans? This was because they believed that they were operating outside the reach of the National Credit Act and the National Consumer Credit Protection Regulations 2010.

More details here: https://asic.gov.au/about-asic/news-centre/find-a-media-release/2015-releases/15-165mr-decision-in-teleloans-and-finance-loans-direct-civil-action/

It was later dismissed in court.

We really like that the Australian government pays attention to this industry and does its best to regulate it. It’s our hope that payday lenders start to offer borrowers deals which are much more affordable.

Payday alternative

We’ve highlighted some of the alternatives already, but there’s more.

Since by now you’ve realized that you could be getting into a huge financial mess with short-term financing.

You can instead:

  1. Consider selling your unused stuff online through portal websites such as Facebook Marketplace. That’s a good way to raise instant cash without ever stepping foot inside a payday loan shop.
  2. Get yourself some part-time work in the evenings or on weekends. This can bring in additional income to serve your out of control debts and overdue bill payments.
  3. Speak with the National Debt Helpline on 1800 007 007 for free advice. This is a government website who’s dedicated to helping individuals like yourself.

By no means would we recommend another payday loan provider because they are all the same. Find someone who’s having a tough time, offer them an expensive loan then penalize them when they struggle to pay it back. Totally unethical!

How we can help

Are you being chased by debt collectors? Teleloans outsources their collection activities to a 3rd party where you might receive text messages or phone calls.

They will call you constantly during the day and evenings. Their motives are simple: To get you to repay the loan in FULL as soon as possible.

Maybe that’s not available to you. In that case, you should consider getting in touch with us here at The Debt Free Community who can help you with a great solution.

That involves us having a chat to your existing debt collectors for you. Most people aren’t comfortable with talking to these nasty people over the phone, so we can happily do it for you. It will save you the stress of handling all of this yourself.

The best part is that our initial phone call is FREE. You pay us nothing to have a chat and discover how we can help you, instead of offering you a payday loan.

In summary

While Teleloans are good as a company, their business practice of loans which serve them profitabily isn’t good. Borrowers sometimes really do have problems paying them back, despite the low initial loan amount.

You might end up paying back 2x the original loan amount in interest fees and penalties. It’s really short term gain with long term pain.

Instead, consider the solutions we’ve recommended here. We’d also love to help you find a way forward through these troubling financial times ahead.

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