Payday lenders face debt collection probe

Former_MSE_Michael

"The way payday lenders collect debts and deal with borrowers who owe them money will come under the spotlight next month..."

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Payday lenders face debt collection probe



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fermi

About time. Hope the FCA doesn't wimp out as the OFT has been want to do.

Sinhanada

Actually I think this is about time. I know there has been a lot of discussion about PayDay lenders on here, and more negative than positive.

I must say I agree wholeheartedly and others will know my issues with them and how I was sucked into the debt spiral in 2010. I know a lot of others are facing similar issues.

My main concern is over the way one lender in particular handled the whole issue. Once I had contacted Stepchange and started to bring myself out of the spiral, Pounds till payday, Quickquid and Payday UK were all quick to freeze charges. Wonga however refused to listen to either myself or step change and piled on interest and late payment charges. The result? a £500 pay back turned into over £1500.

Payday lending offers a quick short term solution but most people get sucked into a long term spiral.

Mr_F_Dorsetty

fermi wrote: »

About time. Hope the FCA doesn't wimp out as the OFT has been want to do.

Probably wishful thinking.

The reality is that these quasi governmental operations put 'being sued' at the top of their 'do not let this happen' agenda.

This may not seem related but it is because it goes to how these operations seemingly work.

I used to at one point have something to do with the DSA (Driving Standards Agency) A man in the locale I lived at the time was a car driving instructor. He was convicted of sexually assaulting a female he was supposedly teaching. His DSA licence was of course suspended indefinitely.

He went to prison for 18 months, when he came out he armed himself with a solicitor and told the DSA he wanted his licence back - he got it back.

When I asked a pretty senior bod at the DSA what the hell they thought they were playing at, his response was;

"I know it is wrong but as soon as anyone threatens to sue, the DSA just fold in..."

In my experience of the DSA, FSA and various other governmental type departments they all have this same outlook. I really would be surprised if much happens to curtail the pay day loan companies.

Wrong obviously, but there you have it.