Integrity Protect No.1 Ltd (“the Company”) is an FCA regulated UK Company, operating north of Cardiff and the M4 Corridor. The Company has identified a significant gap in the payroll loan marketplace and is seeking to build on its successful experience in the consumer loan market, so as to satisfy the demand it has identified from employers seeking to enter the payroll loan marketplace.
The payroll market is a separate yet distinctive market from “payday loans” although they share many common features. The payday loan market operates via a high-interest-bearing rollover loan commonly charging as much as 1,500% APR. The borrower repays the money to the lender. The payroll market differs in that the loan is made directly to the borrower but the cost of the loan is no more than 60% APR. The loan is repaid by the employer and not the borrower, hence the exceptionally low default rate. Integrity offers short-term, payroll loans to UK employees of established UK employers, with repayments collected each month via the payroll system. The benefit to employees seeking such short-term, high-cost loans is in removing the need to resort to expensive borrowing from payday lenders.
Integrity believes that the penal rates of interest charged on loans from traditional UK payday loan companies presents an enormous opportunity, with the added security of the employer deducting the loan repayments at source. On each pay day the employee’s loan (capital and interest) will be deducted by the employer from the payroll and sent direct to Integrity from the employer, negating the risk of collecting direct from the employee. Loans would be for a period of 1-2 months. Using the employer to deduct the loan repayment substantially reduces the risk of default to a figure of less than 0.5% per month, with any default being absorbed by Integrity.