Avoid pay day loans!

Chrissie72

opinions4u wrote: »

I am no fan of PDL companies.

But you appear to be saying that their practice of collecting money contractually owed should be outlawed.

I find that strange.

opinions4U. You quoted a post that was not written by me. It says quoted by me, but that was not my post...JATROPHA said it.

You need to re-address the post I quoted here to that poster.

Apples2

Chrissie72 wrote: »

I mean the PDL companies need to be outlawed. I also think the 'continuous card payment' method needs to be stopped. .

So if they were restricted to only lending at low interest rates, with zero mechanism to withdraw those funds, would they be okay then?

People could sign up, take the money and simply ignore them forever more.

Your issue appears to be that these vultures should NOT be able to receive their money back.

I've said before, it's the endless queue of idiots applying who already know they aren't going to repay who need regulating.

Chrissie72

Apples2 wrote: »

So if they were restricted to only lending at low interest rates, with zero mechanism to withdraw those funds, would they be okay then?

People could sign up, take the money and simply ignore them forever more.

Your issue appears to be that these vultures should NOT be able to receive their money back.

I've said before, it's the endless queue of idiots applying who already know they aren't going to repay who need regulating.

I'm not going to keep endlessly repeating myself ... or explaining myself... So I shall say a final word on this thread (as obviously I'm not getting through with what I am saying! Because I have said what I think half a dozen times!)

My opinion is that PAYDAY LOAN COMPANIES SHOULD BE BANNED.

That clear enough for you?!

opinions4u

Chrissie72 wrote: »

opinions4U. You quoted a post that was not written by me. It says quoted by me, but that was not my post...JATROPHA said it.

You need to re-address the post I quoted here to that poster.

Apologies for any confusion.

I've requoted it.

I was trying to highlight the point that you were agreeing with. Your post seems to imply it's ok for people to borrow money, make a promise to pay back and then not keep that promise.

While I wouldn't ban PDLs, as I think illegal alternatives are worse, I would ban broadcast adverts for them and introduce a mandatory 48 hour cooling off period before funds are released.

tayvixen

I agree with OP the social and economic reasons for my opinion are too many to list. I agree that businesses are created to make a profit but the levels to which Pay Day Loan companies resort is unprecedented and that is why there are so many companies setting up everywhere to provide the same product.
This is very lucrative and its business model is rather similar to that of a scam than a business

I am sure you would say a fool and his money are soon parted but in all honesty have all poor people been fools for all these centuries, education is a privilege cherish it.

There used to be honest business and then there is this which results in alienation of the individual and everyone becomes a statistic or percentage and part of a procedure.
The minds behind these businesses have earned 50 million plus in the last year and their lives are in a different world to their clients.
If there were no poor people there would be no rich .

Some say once bitten twice shy but that is rarely the case as they are creating a cycle of exploitation and we that are lucky enough not to have to resort to them should be grateful. Awareness and education is everything thank you OP.

There should be better regulation of the industry which is soon becoming no better than the loan sharks they were trying to eradicate

dktreesea

Maybe a lot of payday loans are unnecessary and the person borrowing the money is unable to deal with their fear of having no money at all. As long as it isn't for too long a period of time, say a maximim of one month, this experience may be worth trying and isn't as bad as you might think.

But criticising PDL companies and their customers is a bit rich if the ones doing the criticising also have hundreds, or even thousands, of pounds of consumer credit/overdrafts/loans from family/other forms of debt at any one time.

Some of us hardly ever pay our overdrafts off, not because we couldn't skimp and be skint if we absolutely had to, but because we choose not to. A personal overdraft isn't that cheap - 20% per annum or so. Throw in a couple of credit cards, and you could easily run consumer debt of £10,000 a year, average interest £40 a week, without batting an eyelid.

Paying the bank interest month in month out may not seem as bad as going to a payday lender, but the interest is still money down the drain, just like with a PDL.

UsetheFORCE

How about a few things PDL's should do:

Credit Check EVERY application
Report EVERY account to the CRA's
Allow only ONE rollover provided interest plus 50% is paid
If someone rollovers a loan, only allow another loan after a clear month after settlement of the last loan.
Only expect rip off interest rates for the duration of the term and not for infinity...statutory interest equivalent beyond the term at worst.
Stop using Continuous Payment Authority's to collect payment..why do other companies not use them???
Stop putting obscene levels of penalty charges onto accounts

A lender should assess risk properly and lend accordingly....

miduck

Where do you suggest that those who are desperate go if the PDLs stop lending to them, which they would if your ideas were introduced?

UsetheFORCE

So basically you are asking who would the borrowers who are highly unlikely to repay the loan go for a loan?

Debt Management Agencies, Budget Planning Classes......

Treadmill

miduck wrote: »

Where do you suggest that those who are desperate go if the PDLs stop lending to them, which they would if your ideas were introduced?

Payday loans as we know them now didn't exist a decade ago, so I'm sure people would manage as they Did before.