Payday Loans - Peachy Credit check

edited 30 November -1 at 1:00AM in Loans
29 replies 7.2K views
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  • edited 21 May 2018 at 2:23PM
    SystemSystem Forumite
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    edited 21 May 2018 at 2:23PM
    sourcrates wrote: »
    People who usually side with lenders often have a vested interest in doing so, i suspect a few of you may work for payday lenders, or have done in the past.

    No. Never worked for them, never used them. I, like others who you claim are siding with lenders do however take responsibility for my own actions and exercise personal responsibility, not expecting others to do it for me. From your posts I've read on MSE it seems you're one of those who thinks your own personal responsibility is for others to exercise for you given how vehemently you defend those who brought about their own demise putting the blame on anyone else except the poster. In pretty much every response you make to a thread you always say its the other party's fault even when clearly the blame lies with the poster. "Its the lenders fault they gave you money you asked for when you ticked a box to say you could afford it", "Its the parking company's fault you broke the terms and conditions of the car park you agreed to when you used it and got a penalty charge" pretty much sums up your posting history. Whenever I see a reply in a thread from you it is pretty much guaranteed to be one where you blame the other party for the poster's problem. I suspect that you're like a "Like" junkie on Facebook, that you post what they want to hear so they hit the thanks button....

    It isn't that I side with the lenders, it is that I hate with an absolute passion those who bleat on about it being the lenders responsibility to make sure they didn't apply for a loan they couldn't afford. You will never see me chastise someone who owns the responsibility for the part they played in their own demise.
  • edited 21 May 2018 at 2:53PM
    sourcratessourcrates Forumite, Board Guide
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    edited 21 May 2018 at 2:53PM
    Tarambor wrote: »
    I suspect that you're like a "Like" junkie on Facebook, that you post what they want to hear so they hit the thanks button....


    I have actually seen some of your posts to people where you could not of been nicer in your response, the person has gone away feeling they have had a positive experience by asking for help

    I always try to offer positive advice to people without apportioning blame, or judgement, as you know I am a volunteer board guide who donates a fair proportion of their spare time to answering questions on these forums, I have experience of debt in all its forms, been insolvent twice, have advised Government on debt issues, and do this as a "thank you" to the people who once helped me, not for any other reason.

    You appear to be an intelligent and articulate person, I find it incredible to believe that you cannot see how these companies abused people, yes of course people borrowed irresponsibly, you will always get that happening, I have never said otherwise, but people are fallible, they are not machines, some were caught out at a vulnerable time in their lives, a lot of these companies took advantage of that fact, no one escapes this without some blame, but you should expect better behavior from companies issued with a consumer credit license.

    I too managed all my debt responsibly for more than 25 years until a series of set backs occurred in my life, accidents, income reduction, then marriage break up and divorce, which kinda sent me screwy for a good while, until i got myself together again, sometimes life bites you back, i just hope it never happens to you.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File and Ratings, Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to:
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    Any views expressed are mine and not the official line of MoneySavingExpert.com.
    "I don`t trust Bankers, I don`t trust Banks, and I don`t trust you.........Private Frazer".
    For free debt advice, contact either : Stepchange, National Debtline, CitizensAdviceBureaux.
  • takmantakman
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    sourcrates wrote: »
    People who usually side with lenders often have a vested interest in doing so, i suspect a few of you may work for payday lenders, or have done in the past.

    I really can't believe you think only people that have a vested interest in lenders will support them in an argument.

    The reality is that people need to take responsibility for their actions and only borrow money if they know they can afford to repay it. You obviously think you can't be trusted with credit and blame all your problems on the people who lent you the money. But alot of people can be trusted to make a decision based on whether or not they can afford credit.

    The trend is to make credit more and more difficult to obtain and to treat people more and more like children telling them they can't afford it, when a responsible person can.
    If people like you keep saying the lenders are the problem then it will keep getting harder and harder to get credit and the financially responsible people will loose out.

    So why not acknowledge that actually the root cause of the problem is that some people are bad at managing their finances and look for solutions to that. Imagine if everyone had a budget which they considering before making any financial decisions/purchases and saved up an emergency fund. There would be a drastic drop in people getting into unmanageable debt.
  • edited 21 May 2018 at 11:36PM
    sourcratessourcrates Forumite, Board Guide
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    edited 21 May 2018 at 11:36PM
    A full guide to reclaiming unfair payday loan interest and charges, plus a template letter, and much more information, can be found here :

    https://debtcamel.co.uk/payday-loan-refunds/

    Our popular sticky thread on the subject for help and support from others affected by the mis-selling of these unaffordable loans can be found here :

    https://forums.moneysavingexpert.com/showthread.php?t=5289150

    Best of luck to everyone claiming a refund.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File and Ratings, Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to:
    [email protected].
    Any views expressed are mine and not the official line of MoneySavingExpert.com.
    "I don`t trust Bankers, I don`t trust Banks, and I don`t trust you.........Private Frazer".
    For free debt advice, contact either : Stepchange, National Debtline, CitizensAdviceBureaux.
  • edited 25 May 2018 at 7:22AM
    dld2sdld2s Forumite
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    edited 25 May 2018 at 7:22AM
    I dealt with a payday loan company once years ago when they were first appearing "mainstream", it wasn't that I needed the money, it was to make money, in fact I think it may have been this site that put me onto it?


    I cant remember exact amounts, but it was something along the lines of, borrow £100 pay back £115 with interest, but if you went through quidco you got £50 back so in essence made a £35 profit (as I say probably not these figures, but hopefully you get the gist)


    On the lead up to the payback date of the loan I received several calls from the company explaining I did not have to pay it all back at once, that I could have the "luxury" of paying back in smaller payments meaning I wasn't out of pocket so much at the one time and I could borrow more if I wished (of course they never mentioned the horrendous interest charges)


    I politely declined on each occasion they called,but I could understand where people who were struggling a bit financially would have jumped at it as they made it sound so easy and painless.


    Like sourcrates says, setbacks happen in life and I can understand what he is saying about folk being vulnerable, I've been there, got made redundant suddenly and unexpectantly with a fair amount of debt, a young family and was finding it difficult to get a new job, I was robbing Peter to pay Paul for a bit.


    I was lucky I managed through without defaulting on anything, but it was really difficult and I think at that time I could easily have turned to a payday loan company or the like if they had been about and frankly made a real mess of a tough situation.


    I personally think payday loan companies and the like are todays version of Richard Turpin without a conscience and think it's time the government stepped in and made a max interest charge, will it mean some folk cant get loans or make it more difficult to get a loan as these high interest loan companies will have to take a proper look at the financial situation of folk applying to lower their risk? probably, but then that's maybe not a bad thing?
  • takmantakman
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    dld2s wrote: »
    I dealt with a payday loan company once years ago when they were first appearing "mainstream", it wasn't that I needed the money, it was to make money, in fact I think it may have been this site that put me onto it?


    I cant remember exact amounts, but it was something along the lines of, borrow £100 pay back £115 with interest, but if you went through quidco you got £50 back so in essence made a £35 profit (as I say probably not these figures, but hopefully you get the gist)


    On the lead up to the payback date of the loan I received several calls from the company explaining I did not have to pay it all back at once, that I could have the "luxury" of paying back in smaller payments meaning I wasn't out of pocket so much at the one time and I could borrow more if I wished (of course they never mentioned the horrendous interest charges)


    I politely declined on each occasion they called,but I could understand where people who were struggling a bit financially would have jumped at it as they made it sound so easy and painless.


    Like sourcrates says, setbacks happen in life and I can understand what he is saying about folk being vulnerable, I've been there, got made redundant suddenly and unexpectantly with a fair amount of debt, a young family and was finding it difficult to get a new job, I was robbing Peter to pay Paul for a bit.


    I was lucky I managed through without defaulting on anything, but it was really difficult and I think at that time I could easily have turned to a payday loan company or the like if they had been about and frankly made a real mess of a tough situation.

    It sounds like you had no financial plan for if you were made redundant and had no plan how you would service your debts.

    If you had planned for the worst case scenario of being redundant and had a plan with an emergency fund saved up then you wouldn't have been in such a precarious position and it wouldn't have been as difficult.

    If everyone was taught financial management including budgeting and future planning and they considered this every time they were going to take out any credit and make any purchases then there would be a vast reduction in people who had unmanageable debts.
    dld2s wrote: »
    I personally think payday loan companies and the like are todays version of Richard Turpin without a conscience and think it's time the government stepped in and made a max interest charge, will it mean some folk cant get loans or make it more difficult to get a loan as these high interest loan companies will have to take a proper look at the financial situation of folk applying to lower their risk? probably, but then that's maybe not a bad thing?

    This happened 3 years ago and the interest rate is capped at 0.8% per day which is 292% per year. Which is a significant reduction from interest being in the thousands of percent.
    Considering that short term low value loans are comparatively expensive to administer due to the amounts and are high risk due to the nature this is a good deal for the consumer.
  • dld2sdld2s Forumite
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    takman wrote: »
    It sounds like you had no financial plan for if you were made redundant and had no plan how you would service your debts.

    If you had planned for the worst case scenario of being redundant and had a plan with an emergency fund saved up then you wouldn't have been in such a precarious position and it wouldn't have been as difficult.

    If everyone was taught financial management including budgeting and future planning and they considered this every time they were going to take out any credit and make any purchases then there would be a vast reduction in people who had unmanageable debts.





    This happened 3 years ago and the interest rate is capped at 0.8% per day which is 292% per year. Which is a significant reduction from interest being in the thousands of percent.
    Considering that short term low value loans are comparatively expensive to administer due to the amounts and are high risk due to the nature this is a good deal for the consumer.


    you are right I didn't have a financial plan, couldn't afford one, wage I was on at the time let us just about live with enough to pay bills and service loans we had to take at the time for a couple of unavoidable emergency's that happened.


    As for the government capping interest, I didn't know that, looks like some of the firms don't either or more truthfully playing with the figures, and frankly 292% is still too high, they shouldn't be on offer, the folk they are targeting are amongst the least that can afford them


    https://www.theguardian.com/money/2018/apr/14/wonga-mark-2-new-breed-of-payday-lenders-oakam
  • takmantakman
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    dld2s wrote: »
    you are right I didn't have a financial plan, couldn't afford one, wage I was on at the time let us just about live with enough to pay bills and service loans we had to take at the time for a couple of unavoidable emergency's that happened.


    As for the government capping interest, I didn't know that, looks like some of the firms don't either or more truthfully playing with the figures, and frankly 292% is still too high, they shouldn't be on offer, the folk they are targeting are amongst the least that can afford them


    https://www.theguardian.com/money/2018/apr/14/wonga-mark-2-new-breed-of-payday-lenders-oakam

    At 292% yearly interest that means if someone borrows £100 for 30 days they will pay back £24 interest.

    So that £24 has to pay for all their advertising, admin and other costs plus a bit of profit. It really isn't a large sum of money and if it was reduced any more your effectively putting them out of business. Which even though they are a very poor financial choice i don't think taking them away will help people unless they are more financially educated.
  • AndyPixAndyPix Forumite
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    Please feel free to ask any questions you might have.


    Why are you posting here without permission ?
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