MSE News: OFT to investigate payday loan market

chanz4

Think what will happen is less people will be accepted, driving borrowers to loan sharks and an up on NHS with broken bones

ihateyes

DCFC79 wrote: »

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.

So if you missed your loan payment, you be happy for the bank to rai your bank account???

These comanies use their sharp practice to get their money back

End of Pal.... i dont hear you slaggin of people who have reclaimed charges back from the bank.

The charges these companies charge are disproportiante to the loan amount.....

malcolmffc

Every PDL borrower agrees to these charges when they take out the loan. Do you refuse to pay Tescos if you think your food shopping is too expensive?

Garry_Anderson

It is BS to say the government wanted to stop loan-sharking - the corrupt beggars legalised it.

The government decided they wanted a piece of loan-sharks action - now they realise that this was doomed to failure.

bengal-stripe

ihateyes wrote: »

These comanies use their sharp practice to get their money back

Their punters use sharp practice to get the money in the first place. When they sign-up, quite a high percentage of customers are perfectly aware that they will not be in a position to repay within the agreed fortnight or month, but they rely on something to turn up. Or worse, they presume they can beat PDLs at the money-lending game. As long as they will receive (and can spend) the dosh, everything else is unimportant. So, it becomes a battle of wits and mutual dishonesty.

Apples2 wrote: »

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".

[Deleted User]

malcolmffc wrote: »

Every PDL borrower agrees to these charges when they take out the loan. Do you refuse to pay Tescos if you think your food shopping is too expensive?

That's such a poor analogy, if I thought their food was too expensive I'd simply shop elsewhere just as anyone else could. Conversely, it's very often people who can't shop elsewhere for their loans who end up paying the exorbitant APR these firms charge.
The firms badly need some form of regulation to make it harder for people to obtain easy credit which they'll likely find it difficult to pay back.

DCFC79

ihateyes wrote: »

So if you missed your loan payment, you be happy for the bank to rai your bank account???

These comanies use their sharp practice to get their money back

End of Pal.... i dont hear you slaggin of people who have reclaimed charges back from the bank.

The charges these companies charge are disproportiante to the loan amount.....

The charges are laid out(or i presume they are) for all to see so the borrower is aware of the charges and can decide whether its worth taking out a loan.

vzm56n

One leadeing PDL sent me a demand for an overdue payment.
Unfortunately, they had authorised a loan to somebody using my name and address - without any further validation.

So the PDL sent £92.00 to a bank account (not mine) and a few months later contacts me with threats about non payment!

The PDL have acknowledged thier mistake - but now my name and address has been placed on a check list for potential future fraud!

I am not the only one.

They need investigating - in my opinion.

gingeralan

vzm56n wrote: »

One leadeing PDL sent me a demand for an overdue payment.
Unfortunately, they had authorised a loan to somebody using my name and address - without any further validation.

So the PDL sent £92.00 to a bank account (not mine) and a few months later contacts me with threats about non payment!

The PDL have acknowledged thier mistake - but now my name and address has been placed on a check list for potential future fraud!

I am not the only one.

They need investigating - in my opinion.

That's crazy! This sort of lending needs to be controlled so that it it's only offered to businesses who may have a slight cash flow problem, not people who can't afford to live on their current income.

The fact they don't even check the id of their borrowers is ludicrous and open to lots of fraud. These shysters need their wings well n truly clipped

jjgreenwood

I think the mere fact these guys exist says more about the banks who seem unwilling to help out people with short term overdrafts and facilities to educate people how to manage money properly and not take on too many monthly commitments.

30 years ago you had to save before you could borrow, surely these payday people are merely a symptom that the banks current system isn't working as it should.