PDL companies what's been your experience ?

Apples2

ReadingTim wrote: »

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?

Because the PDL companies base their decisions on honesty (of course they know people aren't so it brings more profit to them in the long term).

How many on here who are on the "old king cole" tick the EMPLOYED FULL TIME box just to grab the money?
Come the mysteriously vanishing PayDay, when there isn't one, they all cry foul as those evil lenders "are trying to take all my money leaving me nothing to feed Tyler, Chelsea, Princess Rosalie and Maxfactor. I've hardly got enough for fags and Lager"

Proper lenders have shareholders to please so take more steps to ensure the applicant is actually good for the money, ergo, more thorough credit checks to understand the applicants risk.

No doubt there are more applicants to a single mainstream lender than there is to a single PDL company so there is a lot more to process with the accompanying overhead.


I'm not sure why you say the costs aren't displayed up front. Every Loan I have ever had shows the amount of the loan and the Total Repayable clearly (along with the APR).

ReadingTim

Gordon_Hose wrote: »

Why don't you ask them?

• Because the question was rhetorical

• Becase I'm not a customer of these products - and even if I was, when does the mainstream banking industry act in the best interests of its customers? (nb this is another rhetorical question)

• Because I'm not a shareholder of the banks - and even if I was, would I wish to encourage them to adopt practises which could reduce their profitability, and therefore my dividend payments?

Gordon_Hose

Oh dear me! lol

ReadingTim

Apples2 wrote: »

Proper lenders have shareholders to please so take more steps to ensure the applicant is actually good for the money, ergo, more thorough credit checks to understand the applicants risk.

While that is generally the case, mainstream lenders seem to drag their feet while performing routine checks, which are, to a large degree automated and devoid of human intervention.

"Understanding the applicant's risk" seems to be relegated to whether 'computer says no' or not, but it seems the computer doesn't work 24/7, whereas actually, it could; and with the 'alternative lenders', does.

Apples2

ReadingTim wrote: »

"Understanding the applicant's risk" seems to be relegated to whether 'computer says no' or not, but it seems the computer doesn't work 24/7, whereas actually, it could; and with the 'alternative lenders', does.

That in itself would rattle a klaxon if I were the assessor.

Why is it this applicant has suddenly found such a craving for credit he cannot wait even until the next working day to get cash?
How is he running his life if this craving has suddenly sprung from nowhere?

The last time I took a loan out was for a car.
I researched cars, read reviews, read forums for likely problems, searched Autotrader for average prices and took a couple for test drives.

I decided what car I wanted and the price I was willing to pay.

I applied for a Loan. I honestly have no idea how long I waited for the funds but after a while, the funds were in my account.

I went back to Autotrader, visited dealers and picked one, paid via Visa Debit and drove away. Job done.

Of course there are emergencies like boilers breaking, car needing repairs but that is why I have a Credit Card, for that little emergency I don't have the cash for.


Expecting a loan to be issued in a matter of minutes shouts a "Grabit and scram" warning.

Dirk_Gently_2

Gordon_Hose wrote: »

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.

Take that view to its extreme and there'd be no consumer protection law whatsoever.

But the main point is that no-one, surely, goes to a PDL as a first-choice. Fr so many people in the real world, the desperation of their situation outweighs stupidity or rational thinking - and these companies prey on desperate people in dire financial situations.

Gordon_Hose

It's still a choice, regardless of desperation.

You could have the best credit in the world, but a PDL may suit your needs more than, say, a credit card. You need £300 at short notice for a few weeks, it's easier to approach a PDL than it is to wait for a credit card.

Yeah, you pay more, but they are convenient for a lot of people. Even people with spotless credit.

Although saying that, now they've changed the format PDL's are recorded on your credit file, they aren't really good to have showing on your record anymore. Unless you can be sure you won't need any sort of mainstream credit for a few years.

Dirk_Gently_2

That's what they ought to be for - the quick £300 for a couple of weeks.

But the proliferation of PDL shops in deprived areas suggests that there's most money to be made from desperate/ill-advised people, for whom PDLs are the last - often the only- resort.

No sensible person at the end of their finances/credit would go to a PDL, but a lot of people in desperate situations are lured in by their slick adverts - it's not so easy to be sensible and rational when someone has no cash and kids to feed or bailiffs banging on the door wanting previous debts paid.

And people in such desperate situations often do desperate and badly-advised things - like going to PDLs, who are only too happy to help them out because the punitive APRs and penalty fees mean they're laughing should these desperate/ill-advised people screw up - as they're more likely to.

And so the debt spiral for such people gets worse and worse.

Gordon_Hose

I used a PDL some 4 years ago due to bad credit and needing some quick cash to help me move into a new place.

I was desperate, couldn't get credit elsewhere. I paid it back on time, in full. No harm done.

If anyone gets a PDL knowing they may struggle to pay it back, in full and on time, have no-one to blame but themselves for agreeing to the loan in the first place. None of them, or their sympathisers, want to take responsibility for their actions. Instead blame the PDL who did nothing wrong other than have a crazy interest rate.

Robisere

Ok I knew I would get criticism from those who don't appreciate truth.

Summing up PDL's and those who use them: -

I want money for (insert item(s))

I know - I'll take out a loan from one of those PDL's that everyone talks about. Some are on telly, can't be wrong.

But can I pay it back? (this is the point at which the potential borrower should be looking into factors such as projected Income and future Expenditure)

No, I am not going to worry about that, makes my headache, and I really, really NEED the item(s).

Notice that this is the point at which "Want" becomes "NEED".