PDL companies what's been your experience ?

Dirk_Gently_2

sharpy2010 wrote: »

Why is it that 95% (at least) of the people who apply for these loans cannot manage their finances or be responsible with money?

Perhaps the real question that should be asked is why are these PDLs with ludicrous APRs allowed to target their advertising at those who cannot manage their finances or be responsible with money?

Apples2

Dirk_Gently wrote: »

Perhaps the real question that should be asked is why are these PDLs with ludicrous APRs allowed to target their advertising at those who cannot manage their finances or be responsible with money?

Because that is their customer base.
A bit like asking why Ferrari don't advertise on the Nelson Mandela estate.

Gordon_Hose

Dirk_Gently wrote: »

Perhaps the real question that should be asked is why are these PDLs with ludicrous APRs allowed to target their advertising at those who cannot manage their finances or be responsible with money?

Everyone, and I mean EVERYONE, who takes out a PDL is made aware of the APR when applying.

Nowadays it seems everything has to be dumbed down to protect the stupid from themselves.

Peelerfart

Every single thread about PDL's I've read on MSE,will,at some point, contain the word "stupid".

That's been my experience

malcolmffc

I don't see why anyone would use a PDL when they could just use a credit card for 56 days interest free. Even Vanquis at 40% APR is a much better deal.

If you don't even quality for a subprime credit card....then you shouldn't be borrowing money in the first place.

ReadingTim

I think it's a pity that the high interest rates are obscuring what should be a genuine kick up the @rse for the more mainstream banking industry in terms of speed of approval, speed of money transfer, clarity of information re. total costs etc.

Take wonga for example (not that I'm cheerleading for them...) - a decision usually within 15 mins, and money in your account shortly thereafter. 24/7. How many banks provide this? You can even download an app for your phone. Now I'm sure the banks will crow on about 'responsible lending', but what about treating people like adults and educating them about responsible borrowing?

And fees and other costs. Yes, PDLs are expensive - the APR can be several thousand percent. But they're usually crystal clear about the costs, in real £s, not abstract percentages. Those sliders for example. Whereas in the mainstream, such numbers don't exactly jump out at you, even in the key facts summary...

PDLs (or rather the technology behind them) could revolutionise the lending industry, in the same way as the low cost airlines shook up the aviation industry; but we're getting distracted by emotive talk of "legalised loan sharking" etc - and the mainstream banking industry seems all to happy to let us...

BugsyBrowne

ReadingTim wrote: »

I think it's a pity that the high interest rates are obscuring what should be a genuine kick up the @rse for the more mainstream banking industry in terms of speed of approval, speed of money transfer, clarity of information re. total costs etc.

Take wonga for example (not that I'm cheerleading for them...) - a decision usually within 15 mins, and money in your account shortly thereafter. 24/7. How many banks provide this? You can even download an app for your phone. Now I'm sure the banks will crow on about 'responsible lending', but what about treating people like adults and educating them about responsible borrowing?

And fees and other costs. Yes, PDLs are expensive - the APR can be several thousand percent. But they're usually crystal clear about the costs, in real £s, not abstract percentages. Those sliders for example. Whereas in the mainstream, such numbers don't exactly jump out at you, even in the key facts summary...

PDLs (or rather the technology behind them) could revolutionise the lending industry, in the same way as the low cost airlines shook up the aviation industry; but we're getting distracted by emotive talk of "legalised loan sharking" etc - and the mainstream banking industry seems all to happy to let us...

A quick service that only takes 15 mins to completely trash your credit report as lenders are now using their brains and seeing anyone who has a PDL on their report paid or unpaid are put in the high risk category therefore making future credit applications a lot harder to be accepted.

Gordon_Hose

Indeed. PDL's are now shown as such rather than just a loan. Lenders see these and they scream "I'm in trouble".

ReadingTim

I'm not denying any of that.

But if wonga etc al can get money into your account whatever the time of day or night, and where ever you are, and be completely upfront about the costs; why can't HSBC, NatWest etc?

Gordon_Hose

Why don't you ask them?