"Millions turn to payday loans, claim insolvency experts"

FTBFun

http://www.bbc.co.uk/news/uk-16063271

Except this is a spectaculary flawed piece of churnalism. Why is that?

Because:

R3, which represents "professionals working with financially troubled individuals and businesses", bases its claim on interviews with 2,000 people.

Of course you're going to get a substantial number of individuals considering payday loans (it says 45% struggle to meet payday, although nowhere does it appear that this automatically means payday loans) when the group with which you are engaging with is one that has financial troubles anyway.

And then they have to cheek to extrapolate this to "MILLIONS!".

Absolutely awful from the Beeb.

Mallotum_X

The payday loansharks are an interesting credit form thats popped up over the last few years. Arguing over the exact figures doesnt really acheive very much.

The fact that this sort of rip off lending is allowed and then needed says a lot about the current start of the country for a fignificant number of people.

Have a look on the loans board to see many people struggling with these things.

Buy_It_Now

Sounds like a good business to get into, easy money just like BTL :beer:

shortchanged_2

Well they are obviously making enough money to be sustainable and it is during these tough times these are the types of businesses that will flourish.

I also doubt that the levels mentioned in the study are realistic but it is a worrying problem none the less. These sticking plaster approaches do not solve the problems in hand but merely add to them.

abaxas

Basically high tech provvy loans.

Been around for years, only difference being the media are talking about them.

heathcote123

FTBFun wrote: »

http://www.bbc.co.uk/news/uk-16063271

Except this is a spectaculary flawed piece of churnalism. Why is that?

Because:



Of course you're going to get a substantial number of individuals considering payday loans (it says 45% struggle to meet payday, although nowhere does it appear that this automatically means payday loans) when the group with which you are engaging with is one that has financial troubles anyway.

And then they have to cheek to extrapolate this to "MILLIONS!".

Absolutely awful from the Beeb.

Good news for insolvency experts, they should have a cracking new year.

Mallotum_X

heathcote123 wrote: »

Good news for insolvency experts, they should have a cracking new year.

Doubt it as the people taking these loans out generally have no assets from which the insolvency practitioners can be paid from.

abaxas

Mallotum_X wrote: »

Doubt it as the people taking these loans out generally have no assets from which the insolvency practitioners can be paid from.

Exactly, the loans are well unwritten and designed to cover eventual default.

If anything these people are much better at assessing risk than most banks. Sad but true.

iB1

I bet these have put loan sharks out of business. Actually... I wonder how many of these companies are run by ex loan sharks?

chewmylegoff

FTBFun wrote: »

http://www.bbc.co.uk/news/uk-16063271

Except this is a spectaculary flawed piece of churnalism. Why is that?

Because:



Of course you're going to get a substantial number of individuals considering payday loans (it says 45% struggle to meet payday, although nowhere does it appear that this automatically means payday loans) when the group with which you are engaging with is one that has financial troubles anyway.

And then they have to cheek to extrapolate this to "MILLIONS!".

Absolutely awful from the Beeb.

well, 2,000 people isn't a terrible sample (or even if it is, that's the sort of sample that opinion polls are usually based on), and nowhere does it say that the sample is drawn from a larger group that already has financial troubles. they may have drawn their sample in that way but you cannot tell that from the article. they may also have drawn their sample randomly from the population as a whole.

they also only extrapolate to say that it is likely that millions will use payday loans. it is reasonable logic that people are using credit to bridge the gap.

SailorSam

With all the bad publicity these companies get people must know what they're getting themselves into. Why don't they make more use of their local Credit Unions.
And it would help if they came here to Mse and learnt to budget.