MSE News: 'Broken' payday loans market referred to Competition Commission

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Former_MSE_HelenFormer_MSE_Helen Former MSE
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"The Office of Fair Trading has today asked the Competition Commission to step in to fix the controversial industry..."
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'Broken' payday loans market referred to Competition Commission

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  • cloutyclouty Forumite
    118 Posts
    The OFT threaten to take with one hand, while George Osborne and Ian Duncan Smith gives with the other. Current government policy (soon may it end) has targets on benefit sanctions so that well meaning unfortunate unemployed and sick social security claimants are tricked out of their subsistence payments and left with no other recourse for eating money than the payday lenders.

    The seven-day wait for JSA announced yesterday has Wonga&Co rubbing their hands with glee, and let's not forget the massive present to the payday loan industry represented by Universal Credit (if it ever gets up and running, pray it doesn't) as people living from hand to mouth are left a whole two weeks without any funding for rent, bills, food, the lot.

    Let us not forget that Conservative Central Office is in receipt of large amounts from payday loan bosses, not least Wonga's Adrian Beecroft who is also part of the Tory policy generation machine http://liberalconspiracy.org/2012/05/23/adrian-beecroft-highlights-mindset-of-tory-right/


    I despair.

    http://www.publications.parliament.uk/pa/cm201213/cmselect/cmworpen/writev/576/576.pdf
    http://diaryofabenefitscrounger.blogspot.co.uk/2013/06/the-cruelty-in-osbornes-csr.html
    may your good days grow
  • Payday loans industry to face competition probe

    Payday loans have led some people into a spiral of debt

    The Office of Fair Trading (OFT) has referred the payday lending industry to the Competition Commission because of concerns about "deep-rooted problems with the way competition works"

    http://www.bbc.co.uk/news/business-23065501

    Hmm...wonder how long that will take...

    20120418120245-62cbeff6.gif


    Considering the new financial authority does not come into play until 2014....nothing will be done till then...so even more misery for millions of people

    Yeah it is a choice...but not to be ripped off
    “When the debate is lost, slander becomes the tool of the loser.” Socrates

    Haters gonna hate
  • cepheuscepheus
    20.1K Posts
    ✭✭✭✭✭
    clouty wrote: »
    Let us not forget that Conservative Central Office is in receipt of large amounts from payday loan bosses, not least Wonga's Adrian Beecroft who is also part of the Tory policy generation machine http://liberalconspiracy.org/2012/05/23/adrian-beecroft-highlights-mindset-of-tory-right/

    It is really disgraceful. I'm surprised the Chancellor has the audacity to show his face in parliament. This is far more scandalous than any of the petty MPs expense rows. We must end funding for political parties from businesses, and ensure politicians can't take on directorships both during and well after leaving public service. When will the electorate learn?
  • I am going to be shot down for this.

    However, a large percentage of people that have payt day loans, is not for hand to mouth existance, but to pay for drink, new tv etc

    So before we complelty anilhate the lenders, maybe the 'must have it now' mindset has an element of guilt?
  • Martin

    I see your tweet

    RT @MartinSLewis: Finally action now being taken on payday lenders - the problem is it is shamefully late - too many already hurt... http:/?

    But in all honesty...truth be known...Action if any will not happen till next April at the earliest when the Financial Conduct Authority takes over....all that has happened is this has been referred to the Competition Commission....kinda rolled over like the payday lenders
    “When the debate is lost, slander becomes the tool of the loser.” Socrates

    Haters gonna hate
  • cloutyclouty Forumite
    118 Posts
    I am going to be shot down for this.

    However, a large percentage of people that have payt day loans, is not for hand to mouth existance, but to pay for drink, new tv etc

    So before we complelty anilhate the lenders, maybe the 'must have it now' mindset has an element of guilt?

    You've lost your cleaning job - minimum wage, zero hours - and you've only got a couple of sprouting spuds and some ketchup left in the cupboard. There's no money in the leccy meter key and the kids are winding each other up because they are hungry and the tele doesn't work without power. Only source of cash is a payday loan, so that's what has to be.

    This too is a likely situation, more likely than your scenario.

    Let us not forget that after the seven day wait, it could take weeks to actually get any money.
    may your good days grow
  • clouty wrote: »
    You've lost your cleaning job - minimum wage, zero hours - and you've only got a couple of sprouting spuds and some ketchup left in the cupboard. There's no money in the leccy meter key and the kids are winding each other up because they are hungry and the tele doesn't work without power. Only source of cash is a payday loan, so that's what has to be.

    This too is a likely situation, more likely than your scenario.

    Let us not forget that after the seven day wait, it could take weeks to actually get any money.

    I would make chips and ketchup and play charades with the kids...

    In all seriousness, I dont doubt that there will be extreme situations, however can you hand on heart say that pay day loans are not used for ps3 games, ciggies, booze etc
  • shinkyshonkyshinkyshonky Forumite
    2.8K Posts
    just to throw in the mix...

    Jonathan Luff
    Co-Founder at Luff & Company
    London, United Kingdom | International Affairs
    Current:
    Co-Founder at Luff & Company
    Past:
    Advisor to the CEO at Wonga.com, Advisor to the Prime Minister at Prime Minister's Office, 10 Downing Street, Middle East Department at Foreign
    “When the debate is lost, slander becomes the tool of the loser.” Socrates

    Haters gonna hate
  • shinkyshonkyshinkyshonky Forumite
    2.8K Posts
    more

    One of David Cameron's senior advisers is leaving Downing Street to become a lobbyist for Wonga, the controversial payday lender.
    Jonathan Luff, the Prime Minister's advisor on digital strategy, will be able to start straight away at the company, which has been criticised for allegedly heavy-handed debt collection tactics.
    His move, first reported by Sky News, is likely to fuel the debate about the "revolving door" between ministerial aides and lobbying. There are fears that businesses are able to hire influential people straight from the heart of government.
    Mr Luff's decision to join Wonga is likely to be particularly controversial, as the company fights calls for new regulation that would limit its business activities.
    Payday loans firms have been described as “legal loan sharks” for preying on the poorest workers who cannot make their income stretch from one pay cheque to another.
    The lenders are worried that the Government or financial regulators will cap the interest rates they charge, which can add up to 4,000 per cent a year.
    Wonga was censured for employing “aggressive and misleading” debt collection practices by the Office of Fair Trading earlier this year.
    A spokesman for Wonga confirmed that Mr Luff will join the company to lead its "government affairs" team. On his Twitter account yesterday, Mr Luff posted: "Home. What an extraordinary week. Huge thanks to friends both old and new. #onwards"
    Earlier this month the Daily Telegraph revealed that Conservative ministers agreed to hold meetings with Wonga at the Tory party conference in exchange for payments to the party.
    Business executives were charged £1,250 for face-to-face meetings with ministers at which they were invited to help “develop” business-friendly policies in sessions likened to 'speed dating'.
    “When the debate is lost, slander becomes the tool of the loser.” Socrates

    Haters gonna hate
  • Jon_01Jon_01 Forumite
    5.8K Posts
    Part of the Furniture 1,000 Posts Name Dropper
    ✭✭✭✭
    Broken doesn't come close to it. These company's are a compete joke and seem to want to give their money away.

    I've been getting calls from them for the last 6 months looking for a guy who keeps using my land line number to get loans from them.
    I've had calls from 2 of their fraud depts looking for him, I tell them we have no idea who he is, explain what he's been doing. Half of the 'agent's don't even understand what I'm saying, asking things like 'Will Mr XX be in later then?' !! Maybe if they employed staff that had any common sense they might get on better?

    I've had a few remove my number from their 'system', to then get a call a couple of months later because they've lent him even more money!
    They clearly have no system in place to check what they're told or to even check that they've lent someone before and they haven't been re-payed.

    The sooner they all go bust the better. . .
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