extortionate short term loans

DCFC79

dealer_wins wrote: »

Its the same as the "we buy any gold" "we buy your mobile" "had an accident in the last 3 years" ads

All a rip off, all aimed at gullible people, all best avoided!!

If ads are bothering you then watch BBC1only and install an ad-blocker on your pc (and dont go out)

Dont forget the PPI claim companies,

evanjonesaber

llifor wrote: »

Is there anything that can be done about the extortionate short term loan companies that are advertising everywhere at the moment. They are quoting 4214% APR. How can this be so acceptable and legal? Would appreciate some feedback to know where to start.

Why should anything be done? Don't take the loan if you don't like the interest.

If used correctly, they CAN be useful.

The trouble is far too many people don't use them correctly.

MonkeyMad

The trouble is that all loans give an APR for comparison, but a large section of society don't understand what the APR means beyond a higher number sounds bad. They don't understand that they should be using the APR to compare loans of the same length. The fact that the loan has an intended length of only a few weeks and will have a sky high APR leaves their brains floundering.

Oft used example we are familiar with in our everyday lives:

Lend a mate £20 for an emergency till pay day. He buys you a pint a week later. Work out the APR. It is massive, yet apparently acceptable as a private transaction.

rider1974

Agree with the posts above that they should be avoided at all costs...I made the mistake of having 6 of this little blighters and was only paying the interest back each month and rolling them over and over again, I have giving them a lot of money over the months, until one month i thought i am not having this anymore and paid them off (took me a while) but got there, was fed up of giving them money each month and not getting anywhere, i never missed a payment with them so never defaulted etc, so kept them happy (but not me)

They were great to begin with when you need the cash but can spiral out of control and become a pain in the rear, i certainly will never be touching one again for as long as I live.

AdamJK_2

I agree that APR is largely irrelevant for these types of loans but the loan companies to tend to prey on the weak (or witless or both).

My other half works next door to one of these payday lenders and some of the tactics they use are shocking. Their advice is downright misleading and it's just blatant loan-sharking. Once in the trap it's difficult to break the cycle also as other lenders won't touch you with the PDL's on your credit file.

I do have some sympathy (not much mind).

rich_months

chalkie99 wrote: »

The APR is largely irrelevant

I couldn't agree more :T

Also see http://www.paydayloans.info/2012/05/11/apr-explained/ for payday loans / APR mismatch.

Wheredomy£sgo?

It's great to see people accepting paydayloans for what they are: expensive but sometimes necessary because nobody else will lend!. I a few simple points to consider:

1) We whinge that car insurance premiums are so high becuase of uninsured drivers. If repsonsible borrowers repaid their loans instead of tryign to dodge them, interest rates would fall and the cost of borrowing would be cheaper. Once again, honest folk are paying for the dishonest folk

2) Adverts are adverts. If you see a tena lady advert, do you HAVE TO go out and buy pads to stop you wetting yourself? NO! Customers have to take repsonsibility for their own actions. It is always very clear how much a customer has to pay back.

3) The OFT are saying PDL companies have to carry out I&E checks and lend responsibly, which i agree with, and I know the likes of 321cash, 24/7moneybox and paydayUK DO this. But really, should they have to? When you buy a snickers from Tesco, does the woman on the check out ask you if you are allergic to nuts? NO, she expects you would be sensible enough not to buy it if you were. Similarly, if you can't afford to repay a payday loan, don't whinge about them being thieves!

Finally, speaking to people who work for PDL companies, most people don't even pay back the capital they borrowed! Even if there is an excuse for not paying the interest as it is too expensive, not paying the capital you borrowed is theft and fraud in my opinion!

Anyway, "where to start?" I would make sure you borrow from a responsible lender who will listen to you if you hit difficulties and arrange temporary agreements without slapping fees on. ALWAYS SPEAK TO THEM. I would recommend 321cash.co.uk as a starter.

Peelerfart

I'm desperately trying not to post anything flippant about tena pads.

KingElvis

Payday loans are ftw and are a sensible "stop gap" if you can't afford that new Xagatron LCD TV or that tempting banger parked up on the kerb.

I've taken loads and the good it's done my credit history is incalculable.

27col

KingElvis wrote: »

Payday loans are ftw and are a sensible "stop gap" if you can't afford that new Xagatron LCD TV or that tempting banger parked up on the kerb.

I've taken loads and the good it's done my credit history is incalculable.

A bit of irony breaking through here I think King.