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MSE News: Finally! Government to cap costs of payday loans

edited 30 November -1 at 1:00AM in Loans
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  • Competitive markets don't usually get referred to the Competition Commission for investigation http://www.competition-commission.org.uk/our-work/directory-of-all-inquiries/payday-lending

    Well yes, they do, which is why it's an investigation, not a sentencing.
  • N1AKN1AK Forumite
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    Competitive markets don't usually get referred to the Competition Commission for investigation http://www.competition-commission.org.uk/our-work/directory-of-all-inquiries/payday-lending

    The OFT referred Pay Day Lenders to the competition commission because of issues with how some of them operated. They were not referred to the competition commission because due to concerns about lack of competition ;) so yes apparently it isn't unusual, you just didn't know it.

    Also remember that the OFT effectively forced 50 PDL firms out of the market because of their practices. You don't generally force people out of markets if you are worried about lack of competition.
    Having a signature removed for mentioning the removal of a previous signature. Blackwhite bellyfeel double plus good...
  • N1AKN1AK Forumite
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    Pincher wrote: »
    Reduce the population. One child policy per adult, so a couple can have two children. More than two, tax them. More than four is a crime against society: deport them to Australia.

    It would be a start if we stopped subsidising children let alone charge for them ;) however given the storm about restricting child benefit fro higher tax payers imagine how popular politically it'd be to do it to everyone ;)
    Having a signature removed for mentioning the removal of a previous signature. Blackwhite bellyfeel double plus good...
  • gadgetmindgadgetmind Forumite
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    Pincher wrote: »
    The problem is, prices are now so high, that low income households spend all their money on housing

    All of their money? Really? 100% goes on housing leaving nothing for anything else?
    Reduce the population. One child policy per adult, so a couple can have two children. More than two, tax them.

    I think you might be happier in China than in the UK.
    More than four is a crime against society: deport them to Australia.

    And the Daily Mail web site rather than MSE.
    There is a really good idea moving forward: Institutional landlords.

    If it's such a good idea, why not raise some funds and make it happen?
    I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.

    Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.
  • Legbreaker Don from Deptford has just ordered a new Merc after hearing the news.

    Happy days.
  • gadgetmindgadgetmind Forumite
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    N1AK wrote: »
    given the storm about restricting child benefit fro higher tax payers

    That's because it was implemented badly. Tying it to highest salary rather than household income, and having a 100% loss "cliff edge" was what caused the storm.
    I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.

    Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.
  • edited 26 November 2013 at 11:09AM
    cepheuscepheus
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    edited 26 November 2013 at 11:09AM
    I still think it was rather ingenuous of Martin to tweet this
    Martin Lewis ‏@MartinSLewis 25 Nov Politicians all rather hilariously pushing to claim credit for the payday loan cost cap. Who cares. Just glad it's happening
    However, in May of last year, MPs voted by 266 to 225 – a majority of 41 – to reject Labour MP Stella Creasy’s attempt to allow the authorities to cap the total cost of credit. The shocking truth is that only three Tories voted for the cap and no Lib dems.

    Whilst I'm no fan of new Labour, there are parties which will continue to support the power of the elite business interests, and those which are more likely to challenge them. By sticking up for the consumer you should be supporting the latter group. It's no good pretending it's an apolitical crusade it isn't.

    I think you should thank all the Labour MPs (not just Stella Creasy) who voted for the original bill and criticise the Tories for dragging their heels.
  • Alpine_StarAlpine_Star Forumite
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    N1AK wrote: »
    The OFT referred Pay Day Lenders to the competition commission because of issues with how some of them operated. They were not referred to the competition commission because due to concerns about lack of competition ;)




    FYI the OFT's terms of reference to the Competition Commission were:

    ''The OFT has reasonable grounds for suspecting that a feature or a combination of features of the market or markets for the supply of payday loans in the UK prevents, restricts or distorts competition in this market.''

    http://www.competition-commission.org.uk/assets/competitioncommission/docs/2013/payday-lending/payday_lending_investigation_tor.pdf

    Is that clear enough for you?
  • PincherPincher
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    gadgetmind wrote: »
    All of their money? Really? 100% goes on housing leaving nothing for anything else?



    If they have they wouldn't need to get a Pay Day Loan.
    You probably think people get these loans to buy Sony PS4s.
    gadgetmind wrote: »
    I think you might be happier in China than in the UK.



    They actually have the political will to tackle over-population.
    They have now modified the one child per couple policy to one per person, which the BBC reported as a positive development.


    gadgetmind wrote: »
    And the Daily Mail web site rather than MSE.



    I suspect you don't approve of overbreeding benefit louts either.
    gadgetmind wrote: »
    If it's such a good idea, why not raise some funds and make it happen?



    http://www.theguardian.com/business/2013/apr/03/prudential-invests-generation-rent-100m-deal
  • gadgetmindgadgetmind Forumite
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    Pincher wrote: »
    You probably think people get these loans to buy Sony PS4s.

    http://en.wikipedia.org/wiki/Strawman_argument
    They actually have the political will to tackle over-population.
    Yes, and care little for the rights of the individual.
    They have now modified the one child per couple policy to one per person
    No they haven't. A couple used to be able to have two children if both parents were from single child households. Now only one of them has to be from a single child household.
    I suspect you don't approve of overbreeding benefit louts either.
    Not a term I've ever used nor am I likely to use it.
    I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.

    Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.
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