Can't pay my payday loan!!

JuicyJesus

Apples2 wrote: »

Careful, non cuddly posts are being deleted with a vengeance this morning

I don't doubt it.

Chrisblue1962 wrote: »

I agree 100%. A while ago I took out a couple of PDLs because we absolutely had no alternative but I gradually paid them off. I personally believe that to take out a loan with prior knowledge that you cannot pay it back is a form of fraud. You borrowed it...you pay it back.

It just annoys me how so many people seem to think it's not serious at all, it's all just a laughing matter, they don't need to pay any attention to anything they do... ugh.

DaveLy

JuicyJesus wrote: »

I'm really worried about the state of our country where people think it's acceptable to take out a loan you can't afford and then tell lies to avoid paying it back, and say it all as casually as if they were saying they'd tripped over in the street.

Well technically the total amount of money lied about at this level is really small fish compared to what's really going on, such as bank bailouts and so on. Compare it to the debt forced upon our children to maintain a better lifestyle for the here and now. It might not seem a problem now but wait until interest rates rise.

JuicyJesus wrote: »

Without wishing to get all Daily Mail here, that's a pretty significant level of morality and intelligence deficit.

These pay day loan companies themselves borrow money at such stupidly low rates, then force the poor, who need the money the most to pay 5000%+ APR rates isn't morally unjust? Just because you are likely more educated in the financial sense many utilizing pay day loan services are at the level of a child like mind when it comes to making financial decisions. I mean, you really have to be if you haven't stored enough rainy day money to end up resorting to paying 5000% APR loans...

JuicyJesus

DaveLy wrote: »

Well technically the total amount of money lied about at this level is really small fish compared to what's really going on, such as bank bailouts and so on. Compare it to the debt forced upon our children to maintain a better lifestyle for the here and now. It might not seem a problem now but wait until interest rates rise.

Two wrongs do not make a right, although the two are not even slightly comparable here. Also, bank bailouts have made a profit for the Treasury, and are more to the point completely irrelevant to this topic.

These pay day loan companies themselves borrow money at such stupidly low rates, then force the poor, who need the money the most to pay 5000%+ APR rates isn't morally unjust?

Nobody forces anyone to take out a payday loan. And funny enough, the payday loan companies charge the rich 5000% APR rates too.

But then we're not talking about "the poor" here. That's something you came up with all on your own.

Just because you are likely more educated in the financial sense many utilizing pay day loan services are at the level of a child like mind when it comes to making financial decisions.

Even children understand that telling lies is bad. Even children, if told "If I give you £4 now, you have to pay me £5 next month no matter what" will understand that.

We're not seeing naivete. Naivete implies that they would care but they don't understand, but payday loan companies really do make things so devastatingly simple it's hard to understand how someone could fail to understand what they're selling - indeed, it's very difficult to think of a less complicated financial product. What we're seeing is wilful ignorance and a lack of care taken.

DaveLy

JuicyJesus wrote: »

Two wrongs do not make a right, although the two are not even slightly comparable here. Also, bank bailouts have made a profit for the Treasury, and are more to the point completely irrelevant to this topic.

They are comparable when it comes down to the topic of human behaviour, looking at the root cause rather than attempt to look at a case by case scenario blaming the individual human being for being wrong. Just look at who ran the show at the co-op bank of all places...

The second those at the top of our society become increasingly corrupt, like MP's fiddling expenses recently as another example, it somewhat gives those at the bottom increasing permission to do the same especially when they have less of everything in the first place.

bigadaj

You both make valid points, and to me the common theme seems to be that the penalties for the immoral behaviour being exhibited aren't onerous enough to stop the unacceptable behaviour occurring. If you can play the system then that seems to be acceptable to people at any level of society and as well as the examples above we see it within the benefits and tax system at both the top and bottom of society.

Wilkins

JuicyJesus wrote: »

I don't doubt it.



It just annoys me how so many people seem to think it's not serious at all, it's all just a laughing matter, they don't need to pay any attention to anything they do... ugh.

Perhaps I am being naïve, but are such people really likely to "get away with it" and outwit PDL companies?

fozmcfc

I think we have got to a stage, where people see them as easy money, to even use on something like a weekend away or a luxury electronic item.

But a lot of people take them out, because they are desperate and feel they have no other way out.

Many don't care about the implications of not paying it back, because many already have rubbish credit ratings, otherwise they could get an overdraft/credit card or even a small loan from a bank.

I guess there are circumstances when getting it and defaulting are still the better option than not taking one out at all.

I've said it before, but what did these people do, before payday loans were available?

Hopefully when they decide what to do about Payday loan lending, we will see restrictions on the charges they levy, particularly after someone doesn't pay it back as agreed.

But we also need to see tight restrictions on people taking them out. We need a database of all lenders. Borrowers, should only be able to take out one at a time and if they default, then penalties, such as not being able to take another one out, until at least 12 months after the original loan is settled.

I think we will see a drop in the amount of lenders, when they aren't allowed to charge people huge rates of interest and less people in trouble, because they won't be able to take out multiple loans.