Payday Loans -Please read and agree!!!

Peelerfart

A little simple Simon I'm afraid.

DCFC79

No simon i dont agree with what you say. PDL are fine IF the person being lent the money form a PDL pays the right amount that was agreed upon and on time. The peope who dont abide by the t&c's cause the problems themselves by not paying up when asked to.

fozmcfc

Agree with the majority on this thread, PDL companies have a place and also agree, it is generally those people who don't pay back what they agree to who have issues.

Yes there are some who have issues caused by a failure on the PDL companies part, but they are far outweighed by those who fail to stick to their end of the bargain, usually by an unexpected change of circumstance. If I had a pound for everytime that was used I wouldn't have to work.

The real issue is the charges for failing to pay and that I believe is what is being looked into. At the moment the charges are outrageous in most cases.

So I expect to see some sort of cap, but of course that will lead to many companies packing up shop and saying it's not worth the risk.

This in turn leads to less choice and therefore just like the lenders such as Welcome who gave people with bad credit a chance, the bad credit customers will be responsible for killing one of the very few remaining people they can turn to when they decide they want to again take the money, not pay it back and then have the cheek to call the companies scum and such like.

chesky369

The problem is that people who think they are in desperate straits very often turn to PDL companies before trying to sort their finances at the root - i.e. spending more than their income. If PDL companies were banned their problems wouldn't go away and they would turn to far, far worse illegal loan sharks.

RichGold

ILW wrote: »

Do you prefer the legbreaker type of loan sharks?

Shhhhh. Don't suggest that too loudly. The bloke who wanted his legs stretched might hear you.

freeoffers

I used to work for a payday loan company. People are not forced to take these loans out, they come in of their own accord. Are the rates extortionate? Yes. Are people getting into debt? Yes. Is that the loan companies fault? No. Better choices mean better finances.

londonTiger

people who live pauycheck to paycheck have it tough, I feel sorry for them.. but God damn.. what about the people who can't even live from paycheck to paycheck and have to resorty to preposterous intrest rate finances just so that they can get their pay sooner to make ends meet.

There should be some form of interest free microfinancing available for people in such desperate needs.. sort of like the kiva of UK.

Poosmate

London Tiger, if someone has a shortfall in their income between every single payday then obviously they are living beyond their means. If they have a mobile phone and sky/cable tv then those should be the first things to look at as they are not essential as the larger monthly expenses.

I have a landline with BT and for £13 pcm can make unlimited evening and weekend calls. Plus it's there for incoming calls if you are not working and need the phone for contact. Otherwise, an older mobile phone on PAYG works too. I put about £20 per YEAR on my mobile and I use it as and when I need to - I really don't feel the need to have it permanently attached to my hand.

There are so many ways to reduce your outgoings. Buying shop branded or even their value ranges of food, shopping half hour before closing time, reduce gas/electric consumption (I often wonder if people who plead fuel poverty sit in houses lit up like Christmas trees, leave appliances on, have the heating on and windows wide open etc.). I know people who have their heating on alot but will stand at the front door with the lounge door wide open so all the heat leaves the house whilst they chat on the doorstep. It's madness - you're paying to heat the street!! Then they'll come back in and say "Oooh it's cold out there" and promptly turn up the heating! They wouldn't need to do that if they had said their goodbyes inside and closed the door to the lounge.

When I had a lodger, he would often fall asleep with his computer left on, tv on and light on. He'd leave his door open so I'd often turn all the stuff off after calling him to do it and him not waking. Eventually I made sure I woke him and stood over him whilst he turned everything off and he soon got the picture.

I do often wonder what people do or how they live as they are getting themselves into debt or still have month left at the end of the money.

Poo

geoffky

Payday loans are ok until people decide they will rip them off, then they find out they are far more clever than them and come running here screaming scam, theft and any other word you like ...what you should be asking for is to get martin to tell people to take responsibility for their actions..

ILW

iolanthe07 wrote: »

I suggest 30%.

30% would not be nearly enough to insure against the losses incurred in this type of lending. Remember, these high interest rates are protection against the certainty that a proportion of borrowers will default. The ones who do pay back are subsidising the no-hopers, which may not be fair, but is, alas, life.

30% APR would not even cover the admin costs on a 14 day loan.