Has the FCA got the payday loan cap right? Have your say!

Sazzie23

michael1983l wrote: »

Freecycle, food banks, walking, car boots, local seeling groups on facebook.

There are far more ways to find needed resources than turning to payday loans. I have had a lot of trouble with credit, and I will do the previous mentioned before I ever go turning to payday lenders ever again.

All admirable, but in some circs, panic may well mean people turn to PDLs, the cap might mean some vulnerable folk are turned down, hopefully this will guide them more towards that important LBM. See below.

dresdendave wrote: »

Well done, your approach to dealing with money problems is the correct one, finding an alternative solution rather than just borrowing more.


Ideally when someone can't even get a PDL, it should become a light bulb moment, but I fear there are a few (perhaps many?) who will end up resorting to even more dubious lenders.

And if they can get a PDL, they probably shouldn't, but I think it's a difficult step to realise that when you are in the mire.

curiosity101 wrote: »

Budgeting loans from the government? (the alternative to the crisis loan I think)

There is also, borrow from family, sell items, extra work, freecycle etc (all mentioned in an earlier post)
You can even carboot freecycle items if you're really stuck!

Pay day loans were never the solution, people that went there obviously couldn't get accepted for a sensible rate loan... Making pay day loans less profitable is definitely a step in the right direction.

And if people go to loan sharks then so be it. It's a shame people feel the need to ('feel' the need...), but you can't wrap everyone up in cotton wool. Sometimes people have to learn by their mistakes...

I do feel that money management should be taught in schools though, that seems to be where the real would be.

Whilst teaching about money management in schools is a good idea, I was taught by my parents, but somehow, although I'm not overly dim, I didn't quite 'get it', until I couldn't get credit. As I said before, probably the very people who shouldn't be able to get PDL are the very ones who go for them, reducing the maximum they owe spiralling into realms of unreal debt can only be a good thing.

I would like to add that comments have been made about this subject on the DMP support thread, many who have been customers of PDL and eventually unable to pay, for whatever reason.
What the DMPers were cross about was that no mention was made anywhere in the news about PDLs of what you should/could do if you found yourself needing PDLs and especially rollover PDLs, ie take advice from debtline/CAB/SC. When we get cameos about cancer/suicide/some other subjects we get a little line at the end, if you have been affected by this subject, contact Samaritans or this/that helpline etc, would it make a difference, I don't know!

101problems

Sorry if I missed it but the most important thing that should have been included is to stop people taking out multiple PDL's as that is what causes so much chaos!?

molerat

I think the banks will be keeping their heads down now, watching Paul Lewis on BBC Breakfast comparing the cost of PDLs to authorised overdrafts, the banks are squirming judging by the replies he received from them ! https://twitter.com/paullewismoney