Payday loans - discuss the MSE guide

kloana

If I ever used a PDL (I haven't, but do recognise their place in the market - as well as their pitfalls), I'd be inclined to use a well-known 'household name' online lender, or a national/large-ish chain store that'd be found on the high street, for cheque cashing, pawn broking, and so on.

I don't see any point in naming specific names for recommendation, as I have no experience with any, but my logic is that better-established firms have more of a rep to protect. A dubious rep, no doubt, but they are nonetheless somewhat accountable to the public opinion at large.

I'd also want to inspect their charges first. I don't just mean APR and so on (recognising the faults of using APR as a means of comparing PDLs with mainstream loans), but added fees, etc., such as those added in the case of defaulted/late payment. Just in case I found myself in a bind - I'd rather be negotiating with a company whose charges for these matters are transparent and fair.

Avoid absolutely anyone who collects a fee for attempting to source you a loan, whether dressed up as a PDL or a longer-term option, as the loan in question just won't materialise, and you'll be anything from c.£50-70 worse off at the end of the ordeal.

[Deleted User]

Apples2 wrote: »

By definition, if you need a payday loan, you don't have any money at the end of the month.

Absolutely. Took me a while to grasp but I'm there!

PDLS always just compounding the problem in the 'wrong hands', fortunately I do rather fear my latest employer would not take kindly to anyone taking out a payday loan so I'll consider myself lucky - perhaps more employers should follow suit and start probing workers who think it is an 'easy way' with the more payday loan lenders who check for themselves the applicant is 100% telling the truth the better and let them still decide if they want the risk, whilst I also get the payday lenders do provide jobs it really is a catch 22 now maybe they are now seen as the next thing to the bank thats the problem, just glad I'll never be in the position to find out, sorry I can't partake in any trials! LOL! :rotfl:the only thing I am proud of.
..If nothing else.

easilyparted

I have shares in Provident Financial. Is this company ethical?

Herbalus

easilyparted wrote: »

I have shares in Provident Financial. Is this company ethical?

Not particularly. I would say they make money from people in unfortunate situations. They would probably say they enable people to access credit when there are few other options for them.

They have 3 companies. One credit card company and two personal loans outfits. All aimed at people with less than perfect credit history and are very expensive.

barrrrr

I have three issues with the above (and the 'guide' itself)

1. Stop calling things PDLs. It sounds stupid, will confuse people who can't work it out (who might need help on the subject, but get blinded by science), and also, Americans reduce everything in the world down to a three-letter acronym, which should be reason-enough not to do it yourself. Not to mention 'Payday' is one word, so they should be PLs not PDLs anyway. ... pah.

2. What kind of a misleading guide is it that only explains the costs when people borrow for a whole month? What miniscule percentage of people who get payday loans take them out at the start of their payday month? Virtually NONE, that's how many. Most take it for a week or two, and any decent and honest guide would give the people the information that Wonga (whom I do not work for) only charge you for the amount of days you borrow it for. So instead of the misleading "Wonga charge you £130 to borrow £100 for one month" why not explain that to borrow £100 from them for ten days would only cost £115 to repay, wheras ALL of the others charge you for a whole month (ususally £25 interest per £100 borrowed) and so you'd repay £125 for one day's loan, £125 for ten day's loan, £125 for 25 day's loan. .... EH?! So that's £10 Martin COULD save you (based on 10-day £100 loan of course) if he happened to give you the full information.

3. For this to be a decent proper guide... and a decent, proper forum regarding it ... you have to stop going on at people for taking the loans out. If they've got the ability to find this page, they've got the ability and wherewithall to find non-payday lenders if they were able to borrow from them. ... So concentrate on giving them information that actually helps, rather than blithering on about "month left at the end of your money" or "try borrowing from mates instead," etc

Barry

Apples2

(Text removed by Forum Team)

Besides, you state only a miniscule percentage apply at the start of the month You must be new here if you think people who have a payday are the only ones who apply.

Whilst giving recognition to the "least worse" we should hardly be advertising for them. This type of company occasionally post on forums pretending to be satisfied customers, not that this type of tomfoolery would happen here right Barry?

jojo1964

Just saw an advert for one PDL company called Oakam, says "I thought being on benefits you would say no" apr of 405.3. With a minimum income from salary or benefits of £400. I know that's not the highest apr I have seen but advertising loans to those on benefits is asking for trouble.

barrrrr

Barry John Edmond, born in Northampton in 1974. Now living in Canada, previously in Southampton England for the last ten years WHERE I WORKED IN SHIPPING. I don't even know WHERE Wonga is based (except somewhere in England, of course). My knowledge comes entirely from experience in having taken out more than 30 payday loans over the past few years.

Any of you who were VERY observant might have recognised me from a post on MSE Martin's Facebook page where I explained my whole experience (and the attempted murder I suffered that caused my emergency/difficulties which led to taking payday loans)

I have reported those above for their insults and accusations, well-done for highlighting yourselves as the idiots I was referring to originally, who need to be productive when it comes to talking about people who take payday loans instead of taking cheap shots at those who need help.

After all, Martin's mantra is about financial education, nothing about mocking people or supposedly 'outing' people who work in the industry. Yeah?

Sorry for mistaking MoneySavingExpert's Forum as being for helping people, didn't realise it's a High-and-mighty community centre for the delusionally superior.

How dare you accuse me of being underhand just because payday loans helped me get my life back on track. How dare you accuse me, just because I highlighted howmisleading the guide was. People (in general) take out payday loans when their salary has run out too early in the month, so why have a guide to help people when the information isn't relevant to the need/use.

Anyway, I'm done with this conversation. This forum page is clearly only here for the purpose of belittling people and accusing me; neither of which, frankly, I can stomach. And is exactly the reason I left England. Full of people who think they're better than everyone else, unaware that they're the lowlife. Canada is full of people brought up on decency, helping and manners. Something the posters above could do with considering for the future.

ladtrying

Completely agree Barrrr!

sharp82

barrrrr wrote: »

Canada is full of people brought up on decency, helping and manners. Something the posters above could do with considering for the future.

All that, and they still find the time to club baby Seals to death