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'Dear Archbishop… I disagree with you over Wonga' blog discussion

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'Dear Archbishop… I disagree with you over Wonga' blog discussion

12 replies 4.8K views
This is the discussion to link on the back of Martin's blog. Please read the blog first, as this discussion follows it.




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  • RadiantsoulRadiantsoul Forumite
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    Are these loans regulated under the consumer protection act?
  • How about forcing banks which had taxpayer support to offer some form of emergency short term loan with capped fixed fees, credit checks and some sort of financial advise?

    As far as I am aware, none of the high street retail banks offer short term loans like this. Or do they actually own the payday lenders?
  • WywthWywth Forumite
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    How about forcing banks which had taxpayer support to offer some form of emergency short term loan with capped fixed fees, credit checks and some sort of financial advise?

    As far as I am aware, none of the high street retail banks offer short term loans like this. Or do they actually own the payday lenders?

    Banks offer their current account customers overdrafts (sts) for such short term use :)
  • WywthWywth Forumite
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    Are these loans regulated under the consumer protection act?

    Which loans?

    Wonga (as an example of a payday loan lender) has a consumer credit licence from the Office of Fair Trading and are members of the Finance and Leasing Association. You can also read their code of practice, which spells out exactly how they operate and how consumers can be expect to be treated. They’re also committed to the FLA Lending Code and the Good Practice Customer Charter and addendum for short-term lenders.

    Credit unions may have different arrangements in place. e.g. one I just checked on says they are Registered under the Credit Union Act 1979 and the Industrial and Provident Societies Act 1965
    They are authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.
  • edited 2 August 2013 at 12:29PM
    3guesses3guesses Forumite
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    edited 2 August 2013 at 12:29PM
    The way to combat payday loan companies and other irresponsible lenders is to make it REALLY EASY for borrowers to apply to have their debt written off by the courts if they cannot realistically afford the repayments. These poor lending (and borrowing) practices will only end when the lenders face the very real prospect of losing money for lending irresponsibly...

    Edit: Another thought - in the event that things do go pear-shaped for a borrower, prioritise loan repayments in the order in which the loans were taken out, ie somebody leding to a person who already has lots of debts is less likely to get much back so further discouragement.
  • ErrataErrata Forumite
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    The Church rightly won’t lend to those who can’t afford to repay, many payday firms will.
    The Church rightly won't lend to those who can afford to repay, either. That isn't and never was any part of the initiative.
    .................:)....I'm smiling because I have no idea what's going on ...:)
  • cazzy123cazzy123 Forumite
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    Slightly off subject but Wonga have just informed me that due to an administration error they have had £300 of my money since 2010 they have given me interest back at 8% per annum. I have had many loans with them between then and now and paid interest at full rate, they reckon that as it was a separate contract it doesn't matter. My argument is how could I have owed them say for example £300 (and get charged interest) when they owed me £300.
    I would be grateful for peoples advice and thoughts on this.
  • SparhawkeSparhawke Forumite
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    The bishops are completely out of touch with reality, isn't one of the lines out the bible "money changers get out of my house!!"?

    It is not the churches job to do anything, but the so-called government but where do they stand on this issue?

    Well, as of this week our esteemed Prime Minister was tossing bloody pancakes and making a right mess of it I hasten to add.
    "Don't blink. Blink and you're dead. They are fast. Faster than you can believe. Don't turn your back. Don't look away. And don't blink. Good Luck" - The Doctor.
  • 3guesses3guesses Forumite
    150 posts
    Tenth Anniversary 100 Posts Combo Breaker
    3guesses wrote: »
    The way to combat payday loan companies and other irresponsible lenders is to make it REALLY EASY for borrowers to apply to have their debt written off by the courts if they cannot realistically afford the repayments. These poor lending (and borrowing) practices will only end when the lenders face the very real prospect of losing money for lending irresponsibly...

    Edit: Another thought - in the event that things do go pear-shaped for a borrower, prioritise loan repayments in the order in which the loans were taken out, ie somebody leding to a person who already has lots of debts is less likely to get much back so further discouragement.

    And today, Wonga has announced that it is writing off thousands of loans made to people who can't afford the repayments. Did somebody have a quiet word in their ear about the possibility of the law being changed? Did Wonga jump before they were pushed, as it were? Just how much influence do posts on this website have? I guess we will never know...
  • ErrataErrata Forumite
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    Just how much influence do posts on this website
    None whatsoever.
    .................:)....I'm smiling because I have no idea what's going on ...:)
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