MSE News: Payday loans set to appear on comparison sites

Former_MSE_Helen

Payday lenders will be forced to provide details of their products on comparison websites, under proposals from the CMA

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Payday loans set to appear on comparison sites




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ConsumerWizkid

Wow payday loan comparison sites?! What a new change to the market...

pooch

Do these people who make up these rules have any grip on reality?

There's no point comparing PDLs Vs Coutts (or whichever bank is your preferred choice)
People who use PDLs usually do so because all other forms of legal lending are not available to them!
Even if one PDL will lend money to such an individual, it doesn't mean any other PDL will.

Next step is to ask George down the Nags Head if he can sub them a few quid til giro day arrives ... for a price that he will never reveal.

These people often need money immediately, not in a few days/weeks time. They need it to put food on the table or buy gas/leccy to cook food they may have been given from say a food bank.

As for the article suggesting getting/using a credit card or bank overdraft instead, well at least that gave me a good laugh. :rotfl:

Consumerist

I don't know what all the fuss is about. Mainstream banks have been charging pay-day loan rates on small overdrafts for years. Tackle that and most other pay-day lending will probably not be necessary.

Butterfly_Brain

Either cap their interest rates or just close the sharks down.

corbyboy

Let's have comparison sites for bank overdraft charges. If I go £1 overdrawn on my Halifax current account for one day they charge me £1. Anybody have any idea what this converts to as an APR?

Aquamania

corbyboy wrote: »

Let's have comparison sites for bank overdraft charges. If I go £1 overdrawn on my Halifax current account for one day they charge me £1. Anybody have any idea what this converts to as an APR?

No they don't.

Depending on the exact account, Halifax allow you to go at least £10 overdrawn and not suffer any fees or interest
If you have a reward account, this is increased to £50

So the APR is 0%

PeacefulWaters

Aquamania wrote: »

No they don't.

Depending on the exact account, Halifax allow you to go at least £10 overdrawn and not suffer any fees or interest
If you have a reward account, this is increased to £50

So the APR is 0%

If you go 1p overdrawn on a Reward Account they effectively charge you a fiver by not paying the reward.

So the APR is a very big number I can't be bothered calculating.

As for putting payday loans on comparison sites? Jesus, why would the "authorities" provide another advertising window for these firms?

Monkeyballs

I don't think this is a waste of time at all actually.

It could even benefit people looking to use a payday loan as intended (a few days interest on a £50 loan could be cheaper than an unauthorised overdraft for example).

But, I can't help thinking that it's going to be a waste of time if scores for payday lenders are going to be going out of business over the next year due to changes in regulation anyway? Plus, there are hundreds of lenders operating online which would never be accounted for anyway...

While thousands will argue that they use Payday lenders to simply "live" I bet there are more (a bit like I was) who just see it as another source of credit to waste needlessly... It's not like greasy Ed is going to suddenly start saying he needs to borrow £500 to feed his family rather than blow it on the machines down the bookies and it then be true is it? LOL

MB

Consumerist

Monkeyballs wrote: »

. . . But, I can't help thinking that it's going to be a waste of time if scores for payday lenders are going to be going out of business over the next year due to changes in regulation anyway? . . .

Hopefully, the end result will be for the rogue lenders to change their methods so that they comply with the regulations and only those who don't or won't change will disappear from the market. I don't think we should mourn their loss in that case.

Monkeyballs

Consumerist wrote: »

Hopefully, the end result will be for the rogue lenders to change their methods so that they comply with the regulations and only those who don't or won't change will disappear from the market. I don't think we should mourn their loss in that case.

Fingers crossed eh! But I suspect they will find a way around any regulations put in place... Where there's money there's a way to get it

MB