Speedydosh in liquidation

Brains64

Anyone ever used this company?, well, you won't be able to now, they've gone under fairly recently, that's why their website has been diluted and they're not alone, there's other payday lenders that have bitten the dust or who are in trouble this year, they weren't the most well known of the payday lenders but they were on a fair par with all of the others, I can hear some say 'payday lenders going under?.....horaaaaaay....serves 'em right' and I understand the sentiment I really do but at the same time, this is a concern because if these companies that are exploiting people who are struggling are themselves (poetic justice though it maybe) struggling, what does that say about the state of affairs?, it gives me no cause for celebration and a lot more cause for despair, any thoughts?

Sinhanada

I'm unfortunately one of those who will be celebrating that they will no longer be able to offer PDL's to people - however I do feel for their staff who will be without work.

I do think that a more workable solution needs to be found - and the high rates of interest and poor credit checking needs addressing

nomoneytoday

Sinhanada wrote: »

I do think that a more workable solution needs to be found - and the high rates of interest and poor credit checking needs addressing

What do you suggest?

Practically, lower rates mean less profit, so the PDL companies pull out of the market leaving Kneecap lenders, and higher rates scare off customers..

BillJones

Brains64 wrote: »

if these companies that are exploiting people who are struggling are themselves (poetic justice though it maybe) struggling, what does that say about the state of affairs?, it gives me no cause for celebration and a lot more cause for despair, any thoughts?

It does rather suggest that contrary to what some round here think, these businesses were not a license to print money; they were making normal-ish profits, and were unable to survive a moderate downturn.

Clive_Woody

Sinhanada wrote: »

...the high rates of interest and poor credit checking needs addressing

I don't mean to state the obvious but if PDL companies start doing a more thorough credit check of their typical clients then they are not going to be lending to them at lower rates of interest, most likely quite the opposite.

If the PDLs saw the credit files of some of their clients then they may consider their current rates overly generous and push them up even higher to cover the likelihood of non-payment, default, delayed payment, 'lost' debit cards, insufficient funds, no pay-day, etc.

The PDL lending model is based on a high number of people not repaying what they borrowed so those that do get hit with higher rates. I would be interested to see how many PDLs are paid back according to the contract agreed by both parties.

mjm3346

nomoneytoday wrote: »

What do you suggest?

Practically, lower rates mean less profit, so the PDL companies pull out of the market leaving Kneecap lenders, and higher rates scare off customers..

No worries about the wrong threatening letters then if the customers don't pay up.

kuohu

Brains64 wrote: »

...they've gone under...

And they had such a professional company name too.

System

And the downside is that the liquidators/administrators are going to want the loaned money back sooner rather than later.

Brains64

BillJones wrote: »

It does rather suggest that contrary to what some round here think, these businesses were not a license to print money; they were making normal-ish profits, and were unable to survive a moderate downturn.

Exactly, just like any other kind of a business, many will probably be gambling on their projected profit as a company to satisfy their own creditors who will also be gambling on it, now the problem with this is that although promising projected income on paper will buy a business a certain amount of time, this will eventually come a cropper if they don't see at least a sizable amount of that projected income translate into actual hard profit by the end of each financial year, in the case of payday lenders, especially although not exclusively Wonga, their projected income will be on the backs of a huge amount of repayment plans made for people who default on the original promise date.

The rest will be customers whom they hope will be able to pay back in the normal way within the time they have agreed as part of the loan deal, now, obviously, they will expect a small number that they won't be able to even get a penny out of and they'll have to write them off but too many people unable to stick to payment plans or payback what they were expected to and........TSHTF in a nutshell, to be honest, I reckon Wonga and a few of the other big names in this industry will be surviving more and more on their projected income which they will be hoping they can translate into enough cashflow to keep them afloat, I suspect this is going to get even more brutal in the coming months, it'll be interesting to see which ones survive.

Stevie_Palimo

Clive_Woody wrote: »

I don't mean to state the obvious but if PDL companies start doing a more thorough credit check of their typical clients then they are not going to be lending to them at lower rates of interest, most likely quite the opposite.

If the PDLs saw the credit files of some of their clients then they may consider their current rates overly generous and push them up even higher to cover the likelihood of non-payment, default, delayed payment, 'lost' debit cards, insufficient funds, no pay-day, etc.

The PDL lending model is based on a high number of people not repaying what they borrowed so those that do get hit with higher rates. I would be interested to see how many PDLs are paid back according to the contract agreed by both parties.

As per your above comment around 45-52% is paid back within the time asked for or earlier, A further 20% plus gets rolled over which now is only able to happen twice and then only around 10-15% is sent through for debt collection with the remaining paying late or going into a DM plan, This is based on my own site but would give a rough gauge across the board.

[Deleted User]

Brains64 wrote: »

Anyone ever used this company?, well, you won't be able to now, they've gone under fairly recently, that's why their website has been diluted and they're not alone, there's other payday lenders that have bitten the dust or who are in trouble this year, they weren't the most well known of the payday lenders but they were on a fair par with all of the others, I can hear some say 'payday lenders going under?.....horaaaaaay....serves 'em right' and I understand the sentiment I really do but at the same time, this is a concern because if these companies that are exploiting people who are struggling are themselves (poetic justice though it maybe) struggling, what does that say about the state of affairs?, it gives me no cause for celebration and a lot more cause for despair, any thoughts?

Whilst I hope not more violence will occur? There will be more bankrupty? and the likes

Never thought I'd say it perhaps borrowers deserve the same brush as the lenders though it says something when you find a short term loan charging the same as bank overdraft but I did wonder where the profit was whilst thinking it great

See one payday lender changed their business model to guarantor loans.. perhaps their will be a lot more of that, interesting