MSE News: Have your say on high cost lending

~Brock~

sandraroffey wrote: »

everyone is talking about payday loans etc but has anyone ever looked at provident personal credit??

lots of people have no choice but to go this type of lender. and you pay back almost, and sometimes more than, double what you borrowed.

not good, but for a lot us us, its needs must.

Well you can cap the rate and put them out of business (echoing the obviously wise words of brat673) which will deal with the problem you allude to about people having no choice but to go with them, because they then wont be able to go with anyone!

Two questions.

1. Is that what you really want?

2. If it is, then what actually gives you the right to dictate to another consumer that they should not be able to use their service if they wanted to and went into it with their eyes open?

Gorgeous_George

Ok...

1. Borrow £1,000 with £200 cost limit to be repaid in three months
2. Time to repay but still haven't won the lottery? Can't roll the loan over so find another lender and borrow £1,200 to be repaid in three months.
3. Repeat 2. until all legitimate lenders are exhausted then find an illegal lender or drag family down with you.

If politicians want to help, maybe they could contribute some of their expenses to help those needing dodgy loans.

GG

50Twuncle

Gorgeous_George wrote: »

Ok...

1. Borrow £1,000 with £200 cost limit to be repaid in three months
2. Time to repay but still haven't won the lottery? Can't roll the loan over so find another lender and borrow £1,200 to be repaid in three months.
3. Repeat 2. until all legitimate lenders are exhausted then find an illegal lender or drag family down with you.

If politicians want to help, maybe they could contribute some of their expenses to help those needing dodgy loans.

GG

Alternatively stop drinking/smoking/buying lottery tickets and pay the loan off - and have a more healthy life ?

Tuesday

michaels wrote: »

Three choices if you are short £200 at the end of the month
1) borrow 200 quid for a week on a pay day loan and pay £20 for the privilege.

Have a look at what they actually charge - for a loan of £200 the repayment would be between £250 and £260. Quite a bit more than £20.
If the borrower fails to pay back in no more than 30 days, then the loan may be rolled over - with another £50-60 added. So borrowing £200 for 2 months costs £300-£320.
I'm with Martin - we need laws to protect the most vulnerable in our society against these people.

Apples2

Tuesday wrote: »

michaels wrote: »

Three choices if you are short £200 at the end of the month
1) borrow 200 quid for a week on a pay day loan and pay £20 for the privilege.

Have a look at what they actually charge - for a loan of £200 the repayment would be between £250 and £260. Quite a bit more than £20.
.

£20 is about right, not doubting you have found worse, but £200 for a week from Wonga is £19.69