MSE News: Government faces petition to cap payday loan costs

heathcote123

Apples2 wrote: »

How horrific is that...really??


.

Quite, I'd want more than £14 to risk a hundred pound loan on most their customers. You'd only need one in seven to screw you & you've lost money. The halifax charge me £7 for a week for that, and I'm credit worthy.

Lets get a petition together to ban alcohol as well. And stupidity.

izools

heathcote123 wrote: »

Lets get a petition together to ban ... stupidity.

^This.

You may have a surprisingly large number of signatures.

tagq2

heathcote123 wrote: »

Quite, I'd want more than £14 to risk a hundred pound loan on most their customers. You'd only need one in seven to screw you & you've lost money.

If one in seven "screw" you then you're such an irresponsible lender that you have no business possessing any sort of commercial credit licence.

The problem is not the basic charge, which is not prohibitive, but the fine for e.g. paying up a day late or fees associated with multiple attempts to collect in a short period (behaviour which IIRC the OFT has deemed unacceptable). The worst thing about a loan shark is not that they hurt you once but that they push you into a debt spiral so they can keep coming back and hurting you: this is exactly the pattern of any lender which levies huge punitive fines.

So, cap on costs. It doesn't matter if this makes PDLs less attractive for responsible short term / small sum borrowers because they have the option of credit unions.