MSE News: Payday loan firms face legal crackdown from April

Former_MSE_Helen

"Payday lenders will have to ensure customers can afford loans and face having misleading ads banned under new FCA rules..."

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Payday loan firms face legal crackdown from April



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DCFC79

This is all talk but will it work.

RuthnJasper

DCFC79 wrote: »

This is all talk but will it work.

I like the idea; but fear that all it will do is to drive the hopelessly desperate and/or naive people to use even LESS "reputable" avenues of credit - and more "brokers" will be getting their ill-gotten £70s.

Monkeyballs

RuthnJasper wrote: »

I like the idea; but fear that all it will do is to drive the hopelessly desperate and/or naive people to use even LESS "reputable" avenues of credit - and more "brokers" will be getting their ill-gotten £70s.

I agree, I can see more brokers cropping up...

I do think the new rules are a good idea though, especially;

Restrict the number of times a firm can take money from a borrower's bank account to two. From 1 April, a lender can only take more than two payments if the customer allows it to. Lenders must also only try to take full repayments.

At present, some lenders take lots of small sums out of people's accounts, possibly even every day, sucking out customers' income and causing hardship. The new rules should put customers back in charge of their payments.

MB

RuthnJasper

Monkeyballs wrote: »

I agree, I can see more brokers cropping up...

I do think the new rules are a good idea though, especially;

Restrict the number of times a firm can take money from a borrower's bank account to two. From 1 April, a lender can only take more than two payments if the customer allows it to. Lenders must also only try to take full repayments.

At present, some lenders take lots of small sums out of people's accounts, possibly even every day, sucking out customers' income and causing hardship. The new rules should put customers back in charge of their payments.

MB

Yes; that is a very worthy innovation. I genuinely hope these changes stop some folk getting themselves into such a sordid mess. But my hopes aren't that high.

jonesMUFCforever

IMO there is a simple way to regulate all lenders but especially these 'brokers' who steal £69 from people for getting them a loan.


Make it illegal for anyone to charge a fee until the loan has been paid out to the customer - simples!

Monkeyballs

jonesMUFCforever wrote: »

IMO there is a simple way to regulate all lenders but especially these 'brokers' who steal £69 from people for getting them a loan.

Make it illegal for anyone to charge a fee until the loan has been paid out to the customer - simples!

To be fair (and I hate doing this because I despise PDL brokers) if the customer actually looks at what they are completing then it wouldn't be a problem although the brokers should be 100% transparent about what they are doing and that they are NOT the people lending the money on their homepage.

If the fee was only charged after a successful loan then all that would happen is the customer would borrow more to pay the fee compounding the issue further as it's just more to pay back...

My preference is to just ban the brokers :mad:

MB

jonesMUFCforever

Unfortunately most don't do they - we have to be minding them here - this would crystalize any doubt.


No loan no fee!

Monkeyballs

jonesMUFCforever wrote: »

Unfortunately most don't do they - we have to be minding them here - this would crystalize any doubt.

No loan no fee!

Which is why I hate the rat b@$tards Grrr....

Don't get me wrong, I've never used them or fallen foul but taking money from someone resorting to using a PDL is about as low as you can get :mad:

But, I'd rather have people pay up front and claim a refund back if it doesn't work rather than have them borrow money to pay for the fee - in theory it should stop some people using them at least and then they would have to find the fee and interest on top of what they've borrowed.

Just ban 'em, ban 'em all!!!

MB

matttye

Monkeyballs wrote: »

I agree, I can see more brokers cropping up...

I do think the new rules are a good idea though, especially;

Restrict the number of times a firm can take money from a borrower's bank account to two. From 1 April, a lender can only take more than two payments if the customer allows it to. Lenders must also only try to take full repayments.

At present, some lenders take lots of small sums out of people's accounts, possibly even every day, sucking out customers' income and causing hardship. The new rules should put customers back in charge of their payments.

MB

"From 1 April, a lender can only take more than two payments if the customer allows it to."

Does anyone else see companies writing a clause allowing more than two payments into their T&C's? I wonder how it will work.

Monkeyballs

matttye wrote: »

"From 1 April, a lender can only take more than two payments if the customer allows it to."

Does anyone else see companies writing a clause allowing more than two payments into their T&C's? I wonder how it will work.

Or introducing a cap on the amount that can be borrowed while allowing multiple loans to run concurrently...

So instead of having 1x £700 loan Have 7x £100 loans thus allowing multiple smaller attempts made each day.

Hopefully that won't be the case though.

MB