Guaranteed payday loans were introduced in the United States but these are growing at faster rate in the UK private lending market. These are small amount short-term personal loans up to £500 often disbursed for two weeks or until the payday. Because of the absence of interest rate restrictions, the offered annual percentage rate (APR) of payday loans can go up to 1,000% APR; although it depends upon the borrower where he settles the deal because the pressure of intense competition enforces the private lending agencies to propose just the least priced ‘convenient to borrower’ deal. The average payday loan is about £260 while the average repayment period is 22 days. The numbers of payday loan borrowers in the UK are increasing fast. According to statistics released in 2016 – 17, the UK payday lending industry was valued around £220 million in 2017, while it was of £2.5 billion in 2013. A BBC report states that 760,000 employed people availed the benefit of payday perso