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Payday Loans

UsetheFORCE
UsetheFORCE Posts: 688 Forumite
Part of the Furniture 500 Posts Combo Breaker
http://www.thepilot.com/news/2013/feb/27/bill-would-revive-payday-loans-for-nc/


This bit is DEFINITELY what they should have here:

Previously, borrowers could have multiple loans, often rendering them unable to repay any principal or forcing them to roll over the loans and generating higher interest charges.

Tillman said lenders would be charged a transaction fee, which would help fund a database to keep track of borrowers.

"The database is needed to make sure people don't go down the road and try to get another loan," he said.

Tillman said the legislation also bans "rollover" loans.
I have numerous qualifications in Business and Finance, Accountancy, Health and Safety and am now studying Law.

Don't rely on anything I write as it may be wrong!!!

Comments

  • Gingernutty
    Gingernutty Posts: 3,769 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    And state legislation in North Carolina USA affects us how?
    :huh: Don't know what I'm doing, but doing it anyway... :huh:
  • malcolmffc
    malcolmffc Posts: 339 Forumite
    Read OP's post. They are saying we should have a similar law here.
  • antrobus
    antrobus Posts: 17,386 Forumite
    malcolmffc wrote: »
    Read OP's post. They are saying we should have a similar law here.

    The OP wants legislation to "Revive Payday Loans" apparently. I'm not sure why, North Carolina is one of the states that doesn't permit PDLs to operate.
  • UsetheFORCE
    UsetheFORCE Posts: 688 Forumite
    Part of the Furniture 500 Posts Combo Breaker
    antrobus wrote: »
    The OP wants legislation to "Revive Payday Loans" apparently. I'm not sure why, North Carolina is one of the states that doesn't permit PDLs to operate.


    I MOST CERTAINLY DON'T!!!

    I can only assume that the UK has no plans to ban PDL's and they can be useful. I do however think there should be better regulation and far more restrictions on how they operate.


    The link (Actually the point I clearly cut from it!) I posted outlines issues that I agree should happen over here...I am not as such advocating Payday Loans and there return to that jurisdiction.

    Although PDL Companies are banned from operating in NC, are consumers banned from getting them, say online?
    I have numerous qualifications in Business and Finance, Accountancy, Health and Safety and am now studying Law.

    Don't rely on anything I write as it may be wrong!!!
  • jamesd
    jamesd Posts: 26,103 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    It won't matter whether consumers are banned from taking the loans out. If they are unlawful the lender will not be able to enforce the loan if the consumer stops paying. So the lenders won't be willing to lend the money.

    I'm not in favour of banning rollover loans or making payday loans special and prohibiting people from having them from more than one lender. proper affordability checks can handle both.
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