MSE News: OFT to investigate payday loan market

Former_MSE_Helen

This is the discussion thread for the following MSE News Story:

"The controversial payday lending market will fall under the microscope of an Office of Fair Trading investigation ..."

Read the full story:
OFT to investigate payday loan market

jamesd

Excellent!

blacksta

it should be scrapped.

dealer_wins

blacksta wrote: »

it should be scrapped.

No, dont scrap the investigation, these payday lenders are not perfect.

Super_Daz

Good - about time

DCFC79

dealer_wins wrote: »

No, dont scrap the investigation, these payday lenders are not perfect.

But neither are those who borrow, dont meet the deadline for paying the loan back for whatever reason then cry wolf when the PDL takes the loan from the account.

There are those PDL Co's that are a bit dodgy in what they do and they should be the ones the OFT focus on.

malcolmffc

I think it would be better for the OFT to investigate PDL borrowers and find out why they aren't capable of basic financial management.

DCFC79

malcolmffc wrote: »

I think it would be better for the OFT to investigate PDL borrowers and find out why they aren't capable of basic financial management.

Can only hope for this.

pjsmiffy

For those of you old enough to remember "follow the bear" being scrapped for encouraging under-age drinking I see little difference with puppets and catchy radio jingles.

Who's 5 YO can sing the ...... add.

Should pay-day loans really be advertised as a positive thing or as an emergency way to get out of a short tern tight spot?

LovelyLeeds

Oh gawd, I notice the 'mis-sold' word has been made mention of in that report, I can see it now...

...I was sold a PDL for a gamble on the horses - my horse lost. If I'd won I could have paid it back - was I mis-sold?


(I am actually glad the PDLs are being investigated though)

Apples2

The investigation is welcome if nothing more to show the industry there are eyes on them.
The massive majority take them out because their salary is short, ergo, they can't pay for something.

A small group of oddities take them out for cashback and the bewildering hope it will look good on a credit file.

We don't see many people admitting taking one with no intention of repaying, they can all "easily afford the repayments" . By some miraculous qwirk of bad fortune, they all have that "unforeseen change of circumstances".
It is these people who need to be stopped but ironically would pass any new criteria.