There is so much bad press...

freshstart11

Reading through posts on here it makes me wonder what people think pay day loan companies and guarentor loans - like FLM/Amigo, are there for.


They are filling a gap in the market which is getting mre and more people in the situation that means they need to use them. I do have an FLM loan, I do have bad credit and was disappointed that FLM was my last choice. I read through all the details, understood the APR and monthly payments - worked my budget to make sure I could get this paid back.

I understand people lose jobs/get ill etc and this cant be helped - but for people that just havent paid there are more and more posts on here and elsewhere moaning about the companies.

Im not saying they operate morally and they possibly shouldnt be able to loan out but without them I wouldnt have been able to restart my life.

What do other people feel about them? I am truly interested on any views xx

DCFC79

They're ok but problems occur when the next payment isn't made for whatever reason that is whether its forgetfullness or another bill needs paying before the impending payment for the pay day loan is to be paid. Most of the time its all down the borrower being at fault. Then theres those who just live on the loans, pay off 1 pdl with another then pay off that 1 with another.

paddyrg

Guarantor loans are fine for the borrower, but a terrible deal for the guarantor. That's what gets them a bad press.

Typically guarantor loans are available to people who have proved one or more times that they are not great at managing money (or they would go to a cheaper lender). Then often the borrower again fails the repayments, leaving the guarantor holding the whole of the debt plus high interest rates plus fees and charges added on post haste.

BugsyBrowne

Because payday loans are dirty Horrible thieves who target the weak & vulnerable.

jason1231972

freshstart11 wrote: »

I read through all the details, understood the APR and monthly payments - worked my budget to make sure I could get this paid back

I think this is a key point. You understand, or actually took the time to read (and are willing to stick to, insofar as possible) the T&Cs. For someone like yourself - evidently in possession of at least a shred of financial nouse - it needn't matter that you're paying FLM instead of a more 'reputable' lender. The only difference here between them and, say, a personal loan with Halifax bank is the interest and charges, which is a cost you're willing and able to bear.

A lot of PDL threads on here are along the lines of "Wonga are threatening to do this that and the other to me [because I didn't pay], what can I do to enable me to pay nothing at all?!?!?!?!", or "Wonga took money out of my bank account [because I owed it them], how can I stop this?!?!?!?!". Clearly, many are written by people who don't have a great deal of financial responsibility (a lot is written about responsible lending, but what about responsible borrowing?)

It seems that the nature of PDLs in particular - marketed as the borrower being able to log onto the internet and 'get money' within 10 minutes - facilitate people borrowing on a whim, or without considering and when the money needs to be paid back.

I'm not against PDLs per se. I wouldn't touch them myself with a bargepole, but they have their place, and in the right hands can be managed effectively. It just so happens that the 'right hands' tend to be borrowers with financial sense, who don't generally have to use PDLs. I do find some of their marketing distasteful (something about Wonga using elderly and frail puppets to market their loans leaves a bad taste in my mouth).

jon1965

Most people get angry about payday loans, not because they don't want to pay but genuinely can't pay for a variety of reasons.
Most people (I hope) are prepared to pay back what they owe, but these PDL's do not obey the law/OFT etc when people get into difficulty.
If you tell the PDL co that you are in difficulty and want to make a repayment plan which they agree to it is wrong that they then take more than the agreed amount out
If you tell a payday loan that you are in difficulty , it is wrong that they tell you you must default before they will consider a repayment plan (then they add default charges etc)
When you are trying your best to come to a repayment plan and they telephone you multiple times daily and threaten you with all sorts, that is wrong. Even if you are ignoring them (which of course is not the best way of dealing with it) they should follow the OFT guidelines on debt collection and some do not.

I strongly believe in communication with them at the first available opportunity , but I also believe in protecting yourself, by cancelling bank cards etc and then making payments by S/O

What does not help is the fact that if you go onto Cag you have the likes of renegadeimp and sillygirl1 telling people that they only need to pay the loan +1months interest and not to cooperate with the PDL's when they ask to see an I&E or in MEM's case a bank statement . If you have no money in your bank , use something like PDFescape to cut out the sensitive detail so they can see that you have nothing.
There is one girl on Cag who has believed the hype and thinks that although she has rolled over the loan 3 or 4 times as she has paid almost equivalent to the original loan she only owes roughly 1 months interest. She does not understand that she has effectively taken out 4 separate loans for 1 month each.These muppets encourage her, and when I have tried to be a voice of reason..how do they react..they ban me and remove my posts.

Payday loans do prey on people of that there is no doubt and some do become oppressive and lend irresponsibly.
With respect Freshstart, don't go judging other people as you have obviously got yourself in a mess at some point otherwise you would not need FLM

broad-sword_2

:)In answer, and put simply, the reader base here is Money Saving not Money Stitch Up....

jon1965

So anyone who had debt issues and needs unbiased non judgemental advice should go to "all about debt" and no other forum

OutofDebt-NOT-OutofDanger

freshstart11 wrote: »

Reading through posts on here it makes me wonder what people think pay day loan companies and guarentor loans - like FLM/Amigo, are there for.

They are there for one reason and one reason only - to make a profit!

Personally I would never use a PDL company (and never have), but under the right conditions I can see that they might be useful to some people.

The problems arise when people are able to borrow/roll over enough credit to wipe out any income from their employment (and with their high charges it doesn't take long).

Eonel

In my opinion Guarantor loans are worse than Pay Day Loans.

Despite being far from the most desirable & reputable finance, PDLs have their time & place. Short term high interest loans have always existed and always will do.

Guarantor loans from Amigo quote a representative 50% APR which the Guarantor will sometimes agree to under the misconception that it is not "their" loan.

Of course, it is their loan & they could possibly have got it a lot cheaper by applying on their own account and giving the cash to the person that needs it. The recipient pays them, they pay the bank.

The business model is based upon the misconception and naievity of some people. Grrrrrrr.

LordSVS

Bunch of lowlife criminal cowboys! Preying on the poor!

Lord SVS