Payday Loans - Government petition please support!!!!!

saltnvinegar

FireWyrm wrote: »

Thank you SaltNVinegar for the coherent response. I'll think over your points. However, I'm not convinced that there is a need to 'regulate' them as such. Since when as adults did we abdicate our responsibility for ourselves to the state? I've never used a PDL even though some on here have probably read some of my history that I have chosen to make public, there were times when I could have used the money, but ever since their inception, I've known it was a very stupid thing to do. My 7 year old figured it out the other night when watching an advert for Wonga...she said to me "that's silly mummy, if you didn't have the money this month, how will you have the money to pay it back next month?"...I kid you not, out of the mouths of babes. If my 7 year old has enough intelligence to spot the flaw, why not adults? I simply don't believe that adults do not understand what they are doing when they take on these loans, therefore, I must conclude that they di so knowingly. Before you point out that these people are 'desperate', I would counter that although having faced serious adversity myself, I never borrowed money when I was in a hole, it's just digging you deeper.

Yes of course as adults we should take on an element of responsibility for our own actions however personally I definately wouldn't abdicate them to the government who would be the last people I would trust with them!

But unfortunately they are our elected representatives so we have to work with what we've got.

FireWyrm wrote: »

So, given that any adult of reasonable mental capacity must by definition be more knowledgeable than an average 7 year old, I must disagree with your choice of example. You are quite right, the DSRs don't fit the PDL model and you cannot return the money in 7 days, but seriously, why do you imagine that you NEED a 'cooling off' period in the first place? It wasn't like the PDL held you down and made you sign the agreement, they don't hide their APRs, they dint mislead you, this is a short term loan, payable on a certain day, in full. It's about as straight forward as it gets. Why do we need even MORE regulation?

Whatever happened to being responsible for ourselves?

This petition has nothing to do with personal choice or preventing individuals from making a choice or being responsible for ourselves.

Why do we have distance selling regulations for anything if it wasn't felt the need for consumers to have a cooling off period?

Why do we have the consumer credit act at all?

Why do we need regulation of the financial industry? Could the big banks be trusted if they were unregulated?

Would the mis-selling of PPI or bundling up sub-prime mortgages as AAA financial products be just be the tip of the iceberg if they weren't kept in check by regulation?

Why was Wonga allowed to get away with advertising its loans on the London Tube without displaying its APR if was bound by regulation?

The point is that most finance organizations are bound by these regulations, PDL companies are not. If they can get away with not adhering to these regulations they will.

Were you aware that a lot of these 'microloan' companies are actually financed by investment arms of the very same companies who you bailed out with your taxes, are now borrowing money at 0.5%, lending to 'safe' borrowers at 8-9% and then underwriting the PDL companies to the tune of 1,000s%. Ask yourself why they are doing this? Could it be because of the returns and lack of regulation?!

We do not necessarily need MORE regulation, what we need is a review of existing regulation to meet a new market that has emerged.

The simple fact that we are debating this here on this forum is evidence enough that there is no reason why it shouldn't be debated in the commons also!

Best
SnV