MSE News: Payday loan brokers catching hard-up consumers out, warns Natwest 29 October 2014 at 5:38PM in Loans 9 replies 1.7K views

Former_MSE_Paloma

Payday loan brokers made more than one million attempts to remove money from accounts, according to NatWest ...

Read the full story:

Payday loan brokers catching hard-up consumers out, warns Natwest




Click reply below to discuss. If you haven’t already, join the forum to reply. If you aren’t sure how it all works, read our New to Forum? Intro Guide.

BrookesAndrew

I personally don't think they should be allowed. If you need to borrow money then you should have to go to the banks. If they won't lend you money then there is a good reason.

How many people get a pay day loan and have a good experience with it? There are better options out there if you are desperate for money than a pay day loan.

SnowTiger

BrookesAndrew wrote: »

I personally don't think they should be allowed. If you need to borrow money then you should have to go to the banks.

No more credit unions, building societies or bank of Mum and Dad. An interesting theory.

Monkeyballs

Personally, I hate payday loan brokers with a passion and believe they should be stamped out without exception.

That said, it's a double edged blade as many people do no research into what they are doing and actually read through what they are signing up for and giving their BANK DETAILS to - in most cases I suspect they wouldn't give the details to someone phoning them out of the blue (though I do know it happens) so why would they trust a completely random website that they've found using a Google search?

I do however feel that there is a market for payday lenders and despite the horror stories you hear on here and in the media constantly if used correctly (as for purpose) they can be useful.

As for the idea that if you need to borrow money then go to the bank and if they say no it's for a reason - when one of those reasons is that you have no credit history (due to not lending, not due to a bad credit history) then I think other options should be available...

MB

Pincher

H. G. Wells has seen the future, and it is now.

The borrowers are Elois, and the brokers and lenders are Morlocks.

If we capture and vivisect both, I suspect we will see that they are in fact two different species.

Hanky_Panky

Another misleading and inflammatory title if I may say so.

It's not just for payday loans - it's loan brokers in general that charge a fee however adding in the 'payday' bit makes it seem even worse than it already is and relies on people's feelings about the payday loan industry to influence their decisions about this.

rizla_king

It's accurate reporting as that is what Natwset-RBS were specifically warning about.

http://www.rbs.com/news/2014/10/customers-warned-over-unexpected-payday-loan-charges.html

Natwest's own press release says.

Customers warned over unexpected payday loan charges

CHR15

It's it any surprise there is an increase in this activity?

Wait until all those in the Wonga thread calm down from celebrating. There's a fair few in there who will be falling for broker fees in a couple of months now the PDL route is closed to them.

Broker business is booming.

Gaz83

While I have an element of sympathy for those who pay brokers' fees unwittingly, there has to be an element of personal responsibility recognised by those who put their card details willy-nilly into any old website without doing even a modicum of research.

FireWyrm

Gaz83 wrote: »

While I have an element of sympathy for those who pay brokers' fees unwittingly, there has to be an element of personal responsibility recognised by those who put their card details willy-nilly into any old website without doing even a modicum of research.

Which is true, but there is also evidence that multiple facets of the same company are each using the same set of information to extract multiple 'fees' - which clearly isnt fair. If you authorise one broker then you pay their fee, but what is happening is that brokers who you have never heard of and certainly didnt authorise are taking money from accounts. This is illegal and they know it, but as long as the industry watchdogs are as toothless as they are, it will continue. This is the scandal.