MSE News: Payday lenders face OFT crackdown over debt collection

fozmcfc

Simple measures can see a lot of this cut out.

1/ Only one payday loan allowed at any one time.

2/ Only one roll over allowed.

3/ If not paid back in full, within 7 days of due date, then default on customer, unless arrangement to pay agreed.

4/ A complete block for any further credit, after default issued. After it is paid back, block for at least 12 months on any further credit.

Yes perhaps some of the ways customers are harassed afterwards may be unethical and something should be done about the excess charges, which sometimes stops people paying it back within a short period.

But then so many people take these out without, thinking are they going to be able to pay it back, or they know for certain they will not be able to pay it back. Or of course take another one to pay off the original one.

Ronaldo_Mconaldo

What I find most ironic is that "Pay Day" loan companies seem to target those people without jobs so who will not even have a pay day anyway.

Enfieldian

Ronaldo_Mconaldo wrote: »

What I find most ironic is that "Pay Day" loan companies seem to target those people without jobs so who will not even have a pay day anyway.

True, but judging by some of the posts on here it is often those without jobs that target these types of lender!

mo786uk

The problem the OFT has is that the burden on them to take away a licence in extremley hard and even if they do opt to take a licence away the PDL company can appeal.

The Govt might say it wants companies to comply with the law but can you imagine if a major PDL company was closed down and everyone lost their jobs? The Govt might not be so glad then!

easilyparted

I have shares in Provident Financial. Is this company a 'payday lender'?

mo786uk

easilyparted wrote: »

I have shares in Provident Financial. Is this company a 'payday lender'?

they are a doorstep lender - similar type of lending

featured on panorama a few weeks ago for doing similar things - like getting old aldies to take out loans they couldnt afford.

im-lost

Ronaldo_Mconaldo wrote: »

What I find most ironic is that "Pay Day" loan companies seem to target those people without jobs so who will not even have a pay day anyway.

I think you will find that a good proportion of the lenders require employment details..

So it is in fact the 'customer' lying on their applications

worried48

All the ones I have seen insist that you are in work. Now it is of course easy to say you are when you aren't, as they don't ask for proof, but they do say that is a condition and most of the ones I have seen won't even accept the self-employed.