Alan Sugar blasts the payday loan companies

antrobus

katydo12 wrote: »

....
Then again, what did people do before these payday loan companies were around?? They havent been there for ever.

Cheque cashing.

As in issuing cash for post-dated cheques. There are still people around who will do that for you, subject to the usual fees, which probably work out as an APR of 4000% or so.

iolanthe07

what did people do before these payday loan companies were around?

People tended to live with their means more years ago, but if things were really tight they would pawn stuff.

geoffky

sherylgray wrote: »

I accept too. But in some case payday loans are the only hope. But I still suggest for payday loans hardly for 2-3 days so that one can meet their requirement without much pay off.

No they are not the only hope..The way to stay away from these loans is to budget properly and that for some people is beyond them.. We have a want it and need it now society...How many pay-day loans are really needed for things that can not wait or how about putting a couple of quid away each month for a rainy day..
I really feel for people who think they are a quick fix for them when in reality they are the devil incarnate as they quickly find out..

27col

The very logic behind PDL's escapes me. Surely, almost by definition, if you run out of money one week and then have to borrow to pay back the following week or even two weeks along with the considerable interest. Where is the money going to come from. Oh, I know! From the same small amount you have coming in. Which was not enough to see you through the previous week when you had to borrow.
It is a formula for ensuring that you get deeper and deeper into debt.

barbarawright

Wywth wrote: »

What does that multi-millionaire know about being short of a few quid at the end of the week to, for example, feed the leccy meter???

He wasn't actually born a multi-millionaire as he never ceases to tell the would-be apprentices. It's people from his sort of background who now use payday loans but once managed. I've seen people on these boards ask about payday loans for a one-year-olds birthday party. Once, people would have seen just how ludicrous this is.

LadyV2508

I completely agree...even on one of the PD loans adverts theres a lady saying she used the money "for a beauty course" ....theyre designed for emergencies, not non essentials!

Ive seen many people get into trouble using these companies who make it SO easy for people to borrow money that they cant afford to pay back at the ridiculous interest rate. Its no suprise that the owners of these companies are multi millionaires!

As you very rightly said, how did people manage before?

DaveK1971

Despite living in payday hell for the past two years (they have ruined my life) I can understand that there may be a place for these companies.

I do however think that they should be regulated, have their interest rates capped and be banned from issuing loans over say a fifth of the applicants take home pay.

If somebody's take home pay is £1k per month you could argue that lending them £200 is responsible.. some payday companies would lend £1k+ despite the applicant only earning £1k thus wiping out their wages!!

I have used lots of these companies (I am ashamed to say) and only stumbled across one who I would say show some responsibility by limiting the maximum loan to £200 over no more than 15 days regardless of how much you earn.

The government should take action but they seem to be too out of touch with the realities of trying to make ends meet to care.

Johnmcl7

opinions4u wrote: »

I would seriously consider restricting the adverts to press only and get them off the TV screens and internet.

It's scary how effective the debt consolidation adverts were as it still seems a daily occurrence here that people are looking to consolidate all their loans into one lower, simple monthly payment. I always thought they should have been pulled as the very quick small text along the bottom showed the rather horrifying numbers and worse yet some of them encouraged treating yourself to a new car or a holiday as well which was ridiculous.

John

opinions4u

they should be banned from issuing loans over say a fifth of the applicants take home pay.

This makes a hell of a lot of sense.

Jazee

opinions4u wrote: »

This makes a hell of a lot of sense.

I couldn't agree more.