MSE News: 'About bloody time' - payday lending crackdown

ILW

jaydeeuk1 wrote: »

Pay day loans shouldn't have an APR imo. Should be expressed as a percentage cost of what you borrowed.

EG, if you borrow £100 and you pay back £125 inc fees etc, then it should just say loan cost 25% if paid back on time.

But then again we live in a society that is devoid of self responsibility. So !!!! it, we need more loan sharks.

Part of the problem is that people do not understand APR. A 1000% APR on a one week loan is basically just an admin charge.

mandi

dealer_wins wrote: »

Lets not forget that for every case of irresponsible lending, there is an irresponsible borrower involved!!

Irresponsible? or desperate :think::think::think:

dealer_wins

mandi wrote: »

Irresponsible? or desperate :think::think::think:

This is the rub. No matter how "desperate" someone is, they should NEVER take a loan out that they cannot afford to repay.

People do, and this is why there are so many problems.

Gentoo365

Personally I think that the rules should be amended such that anyone who takes out a payday loan is supplied with a booklet (or an e-mail) clearly entitled "Your Rights if you cannot afford to repay your loan". The booklet should explain that if they are unable to pay they can request a freeze on interest and an alternative payment plan.

There should be rules against using a credit record note, or a CCJ as a blackmail threat, forcing people into loans (mostly rollovers) when they cannot afford it.

It would also be useful if the websites and shops had to display information on what to do if someone has other money problems (e.g. if they are late on rent, or council tax). As in many cases it may be preferable to simply contact a landlord or the council (or whoever you owe money to) and explain the payment will be delayed.

Ronaldo_Mconaldo

But what will the Chantelle's of this world do when her mates Keely and Danyelle call her up on a Friday night (or any other night of the week) for a binge drinking session in town? Where's she going to get the cash to fund that? A Pay Day loan of course!

Or what about Darren? His mates call him up at short notice to go on an STD-spreading holiday to Ibiza. Where's the money going to come from for that? A Pay Day loan of course.

Stop knocking pay day loans, the people that use them will just find some other way to fund their pointless existence if the loans dry up.

Gentoo365

Also, if it is unlawful to roll over the loan more than twice then arguably the nonsense 'APR' figures should be adjusted. As they are currently based on rolling over the loan multiple times until a year passes.

ILW

Gentoo365 wrote: »

Also, if it is unlawful to roll over the loan more than twice then arguably the nonsense 'APR' figures should be adjusted. As they are currently based on rolling over the loan multiple times until a year passes.

Still the same APR whether it runs for a week or a century.

[Deleted User]

ILW wrote: »

Still the same APR whether it runs for a week or a century.

But its pointless stating an APR if the loan is for a fraction of a year

WPR (Weekly percentage rate) may be far more understandable.

ILW

ringo_24601 wrote: »

But its pointless stating an APR if the loan is for a fraction of a year

WPR (Weekly percentage rate) may be far more understandable.

Exactly, so all talk of capping APRs is complete rubbish. The people who state that 2000% APR is outrageous are just showing their own ignorance.

hanlou007

Once again though it is the people devoid of brain cells who ruin it for those customers who use this service properly.
The payday lenders who really needed cracking down on are the one's who 'if you wanted to borrow £30 for 3 days' , wouldn't let you and made you borrow it over 33 days.
For all those that call Wonga, they did at least let you borrow money for as minimum time as you wanted.....

Personally i dont see a problem with these companies, it is the people using them that have/are the problem !!!
We can't always stick up for those who don't deserve sticking up for