Payday Loans - BBC News Segment

Dingledoodie

Just in the last couple of days I watched a BBC news segment about Payday Loans. There was a representative from a loan company saying that his company only charged £400% APR rather than the usual 1000%+ APR that many other companies charged. He also said that on a loan of £100 it would only cost 50p a day in interest. I only need £100 until the 23rd of this month so this would be ideal for me at 50p per day. Did anyone see the segment and remember the company that the representative was from???

angelofthenorth5

do yourself a favour and stay well clear from pdl

Peelerfart

Dont worry Dingle there's a bucket load of companies that'll "help" you out with this.

Be very careful,tales of woe with PDL's are littered across this forum.

[Deleted User]

they can be useful and the apr`s mean nothing if you are only borrowing for a few days,can work out cheaper than some banks overdraft charges,its when people "roll"over the debt that the problems arise

RichGold

woodbine wrote: »

they can be useful and the apr`s mean nothing if you are only borrowing for a few days,can work out cheaper than some banks overdraft charges,its when people "roll"over the debt that the problems arise

That's if you're eligible for an overdraft and don't mind damaging your (possibly already poor) credit rating by taking a PDL.

izools

RichGold wrote: »

That's if you're eligible for an overdraft and don't mind damaging your (possibly already poor) credit rating by taking a PDL.

Why would taking out a PDL damage your credit rating?

My OH has three on his credit file (don't worry, we've had that conversation and it will never happen again) from the beginning of the year and has just been approved for a Post Office & Nationwide credit card no problems

michael1983l

izools wrote: »

Why would taking out a PDL damage your credit rating?

My OH has three on his credit file (don't worry, we've had that conversation and it will never happen again) from the beginning of the year and has just been approved for a Post Office & Nationwide credit card no problems

Because lenders can see who you have borrowed money off when looking at your file. If they manually look at your file because it is border line, you can bet your bottom dollar that they will reject the application if they see you have used payday loan companies recently.

izools

michael1983l wrote: »

Because lenders can see who you have borrowed money off when looking at your file.

Actually, they can't.

This is a common misbelief. The owner of the credit file (us) can, but when a creditor performs a credit check they cannot see who the account is with - only the type of account that it is.

Same with credit searches - they can see when an applicant has been searched in the past and what type of account they applied for, but not the name of the lender they applied with.

Apples2

izools wrote: »

when a creditor performs a credit check they cannot see who the account is with - only the type of account that it is.
.

Which is the key here. For a PDL they see a "Salary Advance" type of application.

It shouts a message that this person is unable to manage his/her day to day expenses so resorts to crazy methods to bolster income.
This is a World away from a standard "personal loan" which people use for large purchases.

Who knows just HOW bad they view this type of application, but however they look at it, it cannot be good.

izools

Apples2 wrote: »

Which is the key here. For a PDL they see a "Salary Advance" type of application.

It shouts a message that this person is unable to manage his/her day to day expenses so resorts to crazy methods to bolster income.
This is a World away from a standard "personal loan" which people use for large purchases.

Who knows just HOW bad they view this type of application, but however they look at it, it cannot be good.

I'm afraid you've been given bad advice on this one Apples2, this is what the application appears as on a PDL applicant's credit file:



These are PDLs that my OH took out in March (and since got such a rollocking for he'll never be doing again, thank f***). One loan companies search appeared as a "Personal Loan" and the other as an "Enquiry" (Generic search).

Besides which, it would be a breach of the DPA for a prospective creditor to act upon data which shows an applicant has handled an account as per the terms they agreed to and since paid off, in a way which would detriment the applicant.

I think you may benefit from considering whether or not your sources are portraying myth as truth, Mr Apples2, sir :beer:

MichaelCR

izools wrote: »

I'm afraid you've been given bad advice on this one Apples2, this is what the application appears as on a PDL applicant's credit file:



These are PDLs that my OH took out in March (and since got such a rollocking for he'll never be doing again, thank f***). One loan companies search appeared as a "Personal Loan" and the other as an "Enquiry" (Generic search).

Besides which, it would be a breach of the DPA for a prospective creditor to act upon data which shows an applicant has handled an account as per the terms they agreed to and since paid off, in a way which would detriment the applicant.

I think you may benefit from considering whether or not your sources are portraying myth as truth, Mr Apples2, sir :beer:

'Term 2 Months' Gives it away though.