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

Payday loan brokers made more than one million attempts to remove money from accounts, according to NatWest ...
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Payday loan brokers catching hard-up consumers out, warns Natwest

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Comments

  • 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
    SnowTiger Posts: 4,458 Forumite
    First Anniversary Name Dropper Photogenic First Post
    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
    Monkeyballs Posts: 1,935 Forumite
    First Anniversary Combo Breaker
    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
    Pincher Posts: 6,552 Forumite
    Combo Breaker First Post
    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.
  • 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
    rizla_king Posts: 2,895 Forumite
    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
    Still rolling rolling rolling...... :) <
    SIGNATURE - Not part of post
  • CHR15
    CHR15 Posts: 5,193 Forumite
    First Post First Anniversary Combo Breaker
    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
    Gaz83 Posts: 4,047 Forumite
    Combo Breaker First Post
    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.
    "Facism arrives as your friend. It will restore your honour, make you feel proud, protect your house, give you a job, clean up the neighbourhood, remind you of how great you once were, clear out the venal and the corrupt, remove anything you feel is unlike you... [it] doesn't walk in saying, "our programme means militias, mass imprisonments, transportations, war and persecution."
  • FireWyrm
    FireWyrm Posts: 6,557 Forumite
    First Anniversary Combo Breaker Debt-free and Proud!
    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.
    Debt Free! Long road, but we did it
    Meet my best friend : YNAB (you need a budget)
    My other best friend is a filofax.
    Do or do not, there is no try....Yoda.

    [/COLOR]
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