Payday Loan issue

soolin

steveh31 wrote: »

You can't wrap your head around the fact that maybe a single mother of 5 on benefits could get a large loan from a payday lender and tell them lies to get it, or someone who has been sacked from a decent paying job could go to this company and lie to them to get money with no means of repayment?

The company has a responsibility as well to ensure it lends to people who can repay it with interest surely?

Loan companies are a lot of things but they are not stupid, don't make that mistake. They obviously have a business model which works and which shows that smaller loans can be done on the basis of either borrowers being truthful and not making fraudulent statements or small enough to be written off.

A lot of borrowers are desperate enough to lie just to get a loan, I assume you were one of them? If they had declined your loan or asked for proof (and that raises issues in itself with home printing and access to sites that allow payslips and bank statements to be falsified) what would you have done? You either lied to get a loan as you were desperate or you just fancied having money in your pocket for a change. Never underestimate how appalling being absolutely broke is, not having a single penny in your pocket to even buy children new socks or suchlike.

By all means report them as mentioned earlier in this thread, i assume you no longer need the loans so it wouldn't matter if they did tighten up their small loan procedure to exclude borrowers like yourself. meanwhile go over to the debt free wannabe board as there are some fantastic regulars on there who can help with hopefully shaving money off your outgoings so that you are not reliant on dodgy loans in the future.

superbigal36

Next you will be telling us if you go into Currys with £500 cash and buy a 50 inch telly.

Sir we have to check if you can afford this telly. We need a statement of income and expenditure to make sure you can feed your family this month.

AndyPix

steveh31 wrote: »

If you have ever had a payday loan you will know the worst feeling is on pay day when you look at your bank account and see that you have already lost some of your wages just paying the interest and that the loan is still virtually in tact. I am glad I don't have one anymore but I still think they should check before they issue.

My account currently shows they will lend me £700 if I want right now and I could click and take it but I would end up with interest paying more than I earn per month in just 1 minute from now.

The companies should be forced to check your eligibility every 3 months maybe.

I get your point , but shouldn't the ownes(sp?) be on the customer not to break the law in the first place ?


There is another thread on these forums where someone is complaining because they needed proof of address dated within 3 months to hire a car !!


Seems that people will complain whichever way they have it


In your case I would be keeping my head down because I had committed fraud on an application rather that making silly threads on an internet forum broadcasting that fact.


That's just me though

MEM62

steveh31 wrote: »

my issue is who is in the wrong here, me for being able to type in any info I want on a form unchallenged or the company for giving me the money?

You would be in the wrong for making a fraudulent loan application.

To expect that PDL's have a duty of care to you to have exhaustive checks to expose the lies you tell on an application form when applying for a loan that you cannot afford is unrealistic.

foxy-stoat

steveh31 wrote: »

My account currently shows they will lend me £700 if I want right now and I could click and take it but I would end up with interest paying more than I earn per month in just 1 minute from now.

Me too - but I havent and never will. If you are in a position that you need to take a pay day loan then you ARE in debt crisis and getting a very high interest rate loan isnt the fix you need.

I take your point that if someone wants to lie and get the money with minimal checks then there is something wrong with the system - I agree, there is something wrong but you are not going to change anything by complaining. I only hope that the folk who are in the situation you describe come on here and ask for help and get pointed to the right place and not fuel a business that has found a way to backward engineer Robin Hood.

Same goes for the whole Amigo Loan model - seen too many of these type threads on here asking for help when its too late.

-taff

steveh31 wrote: »

they did not check the information I gave them and gave me £200 with no idea if I had the money to pay it back, as they had not bothered to check my circumstances since 2008.

Whixh bring me back to...


YOU are the one digitally signing to say you are completing this form to borrow money truthfully.


YOU decided to lie on your application, what kind of checks do you think they should be performing to check you aren't commiting fraud?
Payslips, proof of earning, proof of bank account status? What would you be willing to give them to do this?
You'd be moaning about that then, "oh how intrusive, I only wanted 200 and now they want my shoe size and prescription lenses...."


Please don't come the innocent when you have admitted to commiting fraud on your loan application and now want to shift the onus to someone else. There's such a thing as taking responsibility for your actions you know.

MEM62

foxy-stoat wrote: »

If you are in a position that you need to take a pay day loan then you ARE in debt crisis and getting a very high interest rate loan isnt the fix you need.

You have absolutely hit the proverbial nail on the head. It is a shame that many in this situation do not have their light bulb moment before this point. It would save so much heartache and additional financial distress.

[Deleted User]

steveh31 wrote: »

The companies should be forced to check your eligibility every 3 months maybe.

Yes and why stop there.
How about the powers to recall the loan paid in full at any time.

This already happens with insurance products, the policy can be cancelled and you owe them for reckless behaviour, in addition when 'cancelled on' it becomes much harder to get insured elsewhere, when not taken seriously. A whole new wave of people about to get upset, never mind the payday lot who now seem tame, I'm envious lol.

Account showing funds available and being lent to are two different things. Affordability is definately coming in.

robber2

Steve,



let me introduce you to Liam; https://forums.moneysavingexpert.com/discussion/5913668


I thinnk you two would both benefit from a good long chat over a few pints :-)


Rob