MSE News: Payday loan crisis calls up 94%

Former_MSE_Helen

"The National Debtline charity took over 20,000 calls for help with payday loans in 2012, up 94% from the previous year..."

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Payday loan crisis calls up 94%



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Harry_Boyle

One step away from loan sharks.

fermi

SHOCKEDSCOT wrote: »

Hi, i am completely desperate and looking for assistance. I have (had) a dreaded payday loan through PDL (trading as Mr Lender). I had a monthly payment set up for £6.23 when i was unemployed. I missed it in December, my sister died early in Jan and fell behind then but yesterdy i logged on to bring it up to date and because my step son died on 22nd Feb and was my first day return to work prior ot funeral i dont think i was clear enough in head . My intention was to go online pay what i thought i owed (i.e.£18.69) then phone the company and offer to increase the payments to £50 per month as able to pay more now. Unfortantely it didnt give me a payment option and probably thorugh my own stupid mistake they took nearly £700 there and then from my account!!.. ihave been on the phone to them, got nowhere apart from telling me i could get another loan!...i explained the funds in account were being held by me for my partner for his son's funeral expsnes (funeral 1st March). there was no help/sympathy or indeed realisation the panic and state i was actually in. With being physically sick yesterday, not sleeping last night and banging headache today (as still havent advised my partner) i do not know what to do. My bank said once the funds leave my account they can raise a dispute...the "supervisor" advised very strongly (twice) it woudl be pointless me doing this as "they would win"..i explained i am desperate and happy for them to take the £50 but return the rest, and so i have to try something/anything in order to recoup these funds, which are not in the end mine........Does anyone know IF a reversal or refund MIGHT be possible? many thanks.:mad:

Moved to a separate thread.

Click ---> https://forums.moneysavingexpert.com/discussion/4469657

ChopperST

We need better financial education in this country to stop people getting into a mess in a first place. However to call them "one step away from loan sharks" is a bit excessive.

Bearing in mind I have never had a pay day loan and fingers crossed never will need to. Looking at their websites the majority of companies make the cost of a loan quite clear from the outset as opposed to many mainstream lenders who hide it away in small print.

Payday loans aren't going to go away until people start to learn not to live beyond their means. Come to think of it neither are credit cards or bank overdrafts!

poppasmurf_bewdley

I have never had a Payday loan, but some years ago I was in the situation where I would have used them if they had been available.

From reading the many stories about Payday loans on this and other forums, I have formed the opinion that they are ok to use IN A ONE OFF EMERGENCY, and then only if you don't mind your credit file being trashed.

However, it would appear that many people are using them in the full knowledge that they do not have the funds, and will not have the funds, to pay the loan back when it is due. They then go on to compound the problem by taking out another and then another.

I think that if Payday loans were made more difficult to obtain - maybe by restricting people to one loan every two/three months - a lot of the problems would not arise in the first place.

nyc_451

Indeed, I now see more people going on DMP than before...