Should local councils be doing more to stop payday lending in their area?

BillJones

BRITGUY wrote: »

Well said Monkeyballs, people all make mistakes, panic when they make that mistake, and there is something about having payday lenders readily available in the high street that gives them an aura of respectability that makes it seem like a good idea when it isn't.

I know what you mean. Similarly my high street has a hardware shop. I went in, bought a hammer and nails, and nailed my foot to the windowsill. I can't believe that such a dangerous company should be allowed!

Can anyone tell me who I write to about getting my foot de-nailed?

BRITGUY

Very witty Bill. Really clever. You are such a laugh. Honest. I bet it took your one brain cell a long time to think of that.

pvt

BRITGUY wrote: »

I've had a number of payday loans in the past, .............

but was I happy with them? No, ..................

and been generally treated like dirt by them....

....... and companies like that have no place in the high street

So by your own admission you have had a need to use them a number of times?

And it would appear that despite being unhappy about their customer service you used them again?

And would you have been happy, when you went to use one of them, if there had been a council official standing in the doorway saying "Sorry Mr Britguy, but I can't allow you to use this shady establishment, borrow elsewhere". "But Mr Council Official," you retort, "there is absolutely nowhere else I can borrow it from, and I need it to pay a £60 parking fine that you gave me for parking 2 minutes over the time I paid for last week. Otherwise I will have to pay you £130 by the time I have some cash. So it's much better I borrow the sixty quid here, and pay £15 for the privilege, I'll be £55 quid better off"
"No, I'm sorry Mr Britguy, the council is here to protect you from being ripped off by shisters. Oh, and by the way, if you don't pay that £130 parking ticket we sent you, we'll be round with our friend, Mr Bailiff, to have your wheels away"

and so on and so on....

BillJones

BRITGUY wrote: »

Very witty Bill. Really clever. You are such a laugh. Honest. I bet it took your one brain cell a long time to think of that.

That's silly, if I only had one brain cell I'd be dead!

Anyway, it was an analogy, to try to explain that a product is not dangerous per se, it's all down to how it is used.

Sadly all too many people take out payday loans when they should have seen that it would cause them a problem, but we can't legislate based on the lowest element. We shouldn't stop allowing sensible people to take out payday loans just because some people aren't capable of looking after themselves.

How about a compromise, allow everyone to access them at first, but then anyone who takes one out when they should not has their bank accounts managed for them in future? You know, government takes their wages, gives them some pocket money, and doesn't let them spend it on cigarettes or comics?

That way prudent users get the service, but people who need help are stopped from getting into too big a hole? I'd not be keen on it myself, but as you want the government to act as parents to you, it's probably right up your street, yes?

BRITGUY

Pvt/Bill Jones, I still disagree with you but have no complaints when you make logical arguments like the above rather than reverting to the cynical attitude that blights this board. I'm not in anyway a nanny state person - and yes one discreet shop here and there is fine, particularly as a number of companies are listed, and while still high, their rates are much better than the PDL loans you get on line. I'm more opposed to clustering of shops, 3 in a road as there is near me, insterspersed between three bookmakers, & big signs with grinning guys with a wadge of cash staring at you.

CreditCrunchie

Just stop advertising them. I see at least a couple of payday loan ads per day when watching tv and it sickens me. I agree some people use them responsibly and they do unfortunately perform a needed service in that instance, but the overwhelming majority of people who use them are desperately in need with no hope if ever paying it back. The companies prey on this. So just stop marketing them on tv, leaflets, and setting up shop in underprivileged towns.

BillJones

CreditCrunchie wrote: »

the overwhelming majority of people who use them are desperately in need with no hope if ever paying it back.

That seems very unlikely, as this would obviously lead to them going bust in pretty short order.

I suspect that you've made that up, without stopping to think what it would mean, but if you've some actual data, I'd love to see it. I believe that the default rates are actually around the 5-10% rate.

Former_MSE_Wendy

Evening all. I've been meaning to post this all week...

Kingston council has written a blog, for the CAB, on what it's doing to stop payday lenders.

Have a read here http://blogs.citizensadvice.org.uk/blog/six-things-your-council-can-do-now-to-tackle-legal-loan-sharks/

Wendy

KRS291

Whomever offers a loan with a 2000% APR needs locking up. Surely there should be a legal maximum APR in place. Its nothing more than loan sharking dressed up to look nice! Local councils could help, but it shouldn't be allowed in the first instance in my opinion.

handfull

They stop it