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

bigadaj

KRS291 wrote: »

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.

An interestingly simplistic approach.

On your analysis all the major banks should be locked up, though come to think of it that's not a bad idea. For example if you go a few pounds into the red you are hit with a swathe of charges on unauthorised overdrafts and interest, we've seen many cases where a payday loan has actually been teh sensible choice as it's a lot cheaper than the alternative option with a high street bank.

pvt

BRITGUY wrote: »

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.

As you can probably intimate from my response, I think its a bit rich that some councils are suddenly championing the plight of the small guy, whilst with their other face they rake in millions of quid per annum from decriminalised parking fines. Many of which are issued on technicalities, and then if unpaid escalate at far higher interest rates than PDLs do. If you don't pay a parking fine on time you'll essentially pay 2,500% "interest"!