Irresponsible lending from companies?

[Deleted User]

Tarambor wrote: »

So why do you think you deserve compensation for your financial stupidity? Why do you think it is other people's duty to exercise your personal responsibility for you? I'm genuinely interest to know the answer because there appears to be an awful lot of people coming on here about payday loans who seem to think that it was everyone else's fault and they should be compensated because they willingly took out a loan knowing they could barely afford it.

Secondly, your good friend comes to you, asking to loan £500 from you, you know your friend only earns £550 a month and you'd like the repayment a month later, would you loan them the money?
or would you be responsible enough to remind them they cant afford it?

LABMAN

[Deleted User] wrote:

Secondly, your good friend comes to you, asking to loan £500 from you, you know your friend only earns £550 a month and you'd like the repayment a month later, would you loan them the money?
or would you be responsible enough to remind them they cant afford it?

Firstly loan companies are not your friend.

[Deleted User]

LABMAN wrote: »

Firstly loan companies are not your friend.

Wasn't the point I was getting at, Perhaps not our friends, But definitely, They should come under the term "Responsible lenders" correct me if i'm wrong.

tonycottee

ReadingTim wrote: »

^^^


.......................................

Which political group was that then?

[Deleted User]

[Deleted User] wrote:

Hey people's!



The person wrote that they had been subject to "Irresponsible lending" , Where they applied for a loan of around £1200 as far as i'm aware for a period of 12 months, with an income of £900 a month, and outgoings of £800, meaning the person only had £100 a month spare to live off for them selves, and the repayment amount was something along the lines of £75/80 PCM.

.

Something wrong here. Otherwise - I want one!

[Deleted User]

[Deleted User] wrote:

Something wrong here. Otherwise - I want one!

My mistake, it was actually an 18 month loan, not 12.

sourcrates

Tarambor wrote: »

So why do you think you deserve compensation for your financial stupidity? Why do you think it is other people's duty to exercise your personal responsibility for you? I'm genuinely interest to know the answer because there appears to be an awful lot of people coming on here about payday loans who seem to think that it was everyone else's fault and they should be compensated because they willingly took out a loan knowing they could barely afford it.

When people get in trouble financially, nearly always there first thought is :

"where can i get some money from" ?.


Very rarly is it :


"I must take debt mangement advice as i can`t` afford my current borrowing".


It just seems to be a natuaral reaction for most people, lots of these payday loan companies realised this, and there is no doubt they took advantantage of that, people may of borrowed unwisly, but a lot of them should never have been given the loans in the first place.

You can argue the financial responcibility aspect till the cows come home, most people earn similar amounts, month in, month out, it was simply immposible for them to repay the next month, without borrowing again, and again, and again, and once you are in that spiral of debt, its very hard to get out of it, as you become imune to other options, no matter how financilly savvy you thought you were, this can happen to anyone.

The situation is usually triggered by something, be it gambling, relationship failure, or a death in the family, at one point, there were thousands of payday loan companies operating from outside of the UK, so no fallback to the FOS for anyone, they were just giving money to anyone, some emptying bank accounts when the debtors could not pay, then moving on elsewere, it was a torid time, and if you were not involved in the borrowing aspect at all, then its very easy to be judgemental of these people, but i have heard of some terrible cases were lenders took one womens entire life savings, some 32k just in interest on one of these loans, and i beleive she only borrowed £500 initially.


Something had to be done, and it was, with better regualtion, and caps on interest, things have improved, lending criteria has much improved as well, so has the time frame for repayment, now commonly 3-6 months, but it was the whole concept of payday loans that was wrong, it was just unaffordable for the majority of people, but desperate people don`t ask too many questions do they.

[Deleted User]

sourcrates wrote: »

When people get in trouble financially, nearly always there first thought is :

"where can i get some money from" ?.


Very rarly is it :


"I must take debt mangement advice as i can`t` afford my current borrowing".


It just seems to be a natuaral reaction for most people, lots of these payday loan companies realised this, and there is no doubt they took advantantage of that, people may of borrowed unwisly, but a lot of them should never have been given the loans in the first place.

You can argue the financial responcibility aspect till the cows come home, most people earn similar amounts, month in, month out, it was simply immposible for them to repay the next month, without borrowing again, and again, and again, and once you are in that spiral of debt, its very hard to get out of it, as you become imune to other options, no matter how financilly savvy you thought you were, this can happen to anyone.

The situation is usually triggered by something, be it gambling, relationship failure, or a death in the family, at one point, there were thousands of payday loan companies operating from outside of the UK, so no fallback to the FOS for anyone, they were just giving money to anyone, some emptying bank accounts when the debtors could not pay, then moving on elsewere, it was a torid time, and if you were not involved in the borrowing aspect at all, then its very easy to be judgemental of these people, but i have heard of some terrible cases were lenders took one womens entire life savings, some 32k just in interest on one of these loans, and i beleive she only borrowed £500 initially.


Something had to be done, and it was, with better regualtion, and caps on interest, things have improved, lending criteria has much improved as well, so has the time frame for repayment, now commonly 3-6 months, but it was the whole concept of payday loans that was wrong, it was just unaffordable for the majority of people, but desperate people don`t ask too many questions do they.

Couldn't of said that any better myself.

System

So basically it is OK for loan companies to go bust as a result of such legislation, people working at those companies and their suppliers to lose their jobs, any people with pensions who had shares in those companies to lose retirement money and basically a whole long line of people who are responsible with their money to end up in trouble because people who can't control themselves expect the government to force everyone else to do it for them. That is the flip-side to this that people seem to have ignored, the fact that the REAL victims in all of this are the people who lose their jobs and possibly their homes as a result even though they didn't do anything wrong.

Maybe leaving people who get into a load of debt to deal with the consequences of their decisions and suffer a bit of pain and hardship might have been better than giving them a get out of jail free card that actually REWARDS THEM in the cases where a loan not only gets the interest cancelled but cancelled altogether which just makes them think they can do whatever they want without consequence because there'll always be someone to bail them out. I wonder how many of those who successfully managed to get their loans wiped out decide to do the same again thinking they can just pull the same trick a second, third or fourth time.

Thomas_The_Tank_Top

Tarambor me hearty. Like all financial threads on Money Scrounging Expert. The ONLY sin is to be judgemental.