Irresponsible lending complaint

onwards&upwards

Some of the judgey people on here should just count their blessings if they’ve never felt so desperate that a payday loan seemed like a good idea and can’t even imagine how that might come to be the case or how it might affect their decision making abilities.

Takmon

sourcrates wrote: »

I am VERY anti bank, and 100% for the consumer, so I see that as a positive, not a negative.

That is certainly a negative because as a board guide and someone who appears to want to help people in debt then impartial logical advice is far more helpful.

Let's say for example someone makes a poor financial decision to borrow money from a high interest payday loan provider. You will say the provider is wrong for lending the money and it's all their fault. So this person will be more likely to make the same mistake in future thinking they did nothing wrong. Making people take responsibility for their financial decisions will mean they are less likely to make poor choices and get into trouble again in the future.

I have made thousands and thousands of pounds by taking advantage of switching bonuses and special high interest accounts from the banks. I have never been in any financial difficulty in my life because i take responsibility for my financial decisions and make sure i understand them fully before continuing.

Blaming the banks for everything helps no one and just because you are not responsible enough to make your own financial decisions doesn't mean everyone isn't.

Willing2Learn

I cannot understand how people cannot comprehend the definition of irresponsible lending.

When a payday loan by definition is "a small, short-term loan that is expected to be repaid on the borrower’s next pay day". Then when a payday loan offered their products over a far longer period, then that is just clearly irresponsible lending, no ifs, no buts. It was designed to ensnare the borrower in to a vicious cycle of increasing debt.

I am not anti-bank. I am pro-fairness.

Kentish_Dave

Sourcrates, getting shorty, linking to rules that no-one has broken and stating how biased you are is no substitute for actually engaging in a proper discussion.

I find your advice to be damaging, as you stop people reflecting on their own bad decisions.

Without doing that they will make the same mistakes over and over.

Hopefully you’ve never had a debt problem, but it becomes hugely more likely if you take this view that everything is someone else’s fault.

sourcrates

Takmon wrote: »

I have never been in any financial difficulty in my life because i take responsibility for my financial decisions and make sure i understand them fully before continuing.

Blaming the banks for everything helps no one and just because you are not responsible enough to make your own financial decisions doesn't mean everyone isn't.

Your confusing payday lenders with banks again.

I’ll say it again, banks do not provide pay day loans, they are private equity companies.

Your excellent financial status is exactly the reason you will never understand this issue from the debtors point of view.

onwards&upwards

Takmon wrote: »

That is certainly a negative because as a board guide and someone who appears to want to help people in debt then impartial logical advice is far more helpful.

Let's say for example someone makes a poor financial decision to borrow money from a high interest payday loan provider. You will say the provider is wrong for lending the money and it's all their fault. So this person will be more likely to make the same mistake in future thinking they did nothing wrong. Making people take responsibility for their financial decisions will mean they are less likely to make poor choices and get into trouble again in the future.

I have made thousands and thousands of pounds by taking advantage of switching bonuses and special high interest accounts from the banks. I have never been in any financial difficulty in my life because i take responsibility for my financial decisions and make sure i understand them fully before continuing.

Blaming the banks for everything helps no one and just because you are not responsible enough to make your own financial decisions doesn't mean everyone isn't.

Sourcrates is hands down one of the best providers of correct, helpful advice on this whole forum.

There are so many people in this country debt free or on their way there thanks to his help, and I don’t think i’d be exaggerating to say there are very likely to be people who are still alive today as a result.

sourcrates

Kentish_Dave wrote: »

Sourcrates, getting shorty, linking to rules that no-one has broken and stating how biased you are is no substitute for actually engaging in a proper discussion.

I find your advice to be damaging, as you stop people reflecting on their own bad decisions.

Without doing that they will make the same mistakes over and over.

Hopefully you’ve never had a debt problem, but it becomes hugely more likely if you take this view that everything is someone else’s fault.

Dave, don’t start on me, I bite.

Takmon

sourcrates wrote: »

I am VERY anti scam, and 100% for the consumer, so I see that as a positive, not a negative.

And you still don’t get it do you, it’s not banks we are taking about,

READ THE POST CORRECTLY!!

Banks do not provide payday loans, they are private equity companies.

I see you have edited your post so i will reply to the edit, but before you edited it you did agree you were "VERY anti bank". I agree i should have said you are "anti-credit providers" to cover the whole market.

If a company is "scamming" people then yes i agree they should be shut down. But if the company clearly show the interest rate they charge and any fees which basically all Payday loan companies did then it's not a scam.

sourcrates wrote: »

Your excellent financial status is exactly the reason you will never understand this issue from the debtors point of view.

I could argue that the fact that i have never been in financial difficulty means i am in a better place to offer help to people with budgeting because my attitude and system obviously works.

99% of people who get into financial difficulty could have budgeted bettered and for a lot of people this would have avoided them getting into debt.
On the Debt-Free Wanabee part of the forum almost everyone is asked to post their SOA, people then go through it and help reduce their outgoings and this eventually leads to them reducing/eliminating their debt and start saving.

So this proves if they had done this from the start they wouldn't have gotten into debt in the first place. That's why i feel so strongly about telling people they need to budget properly and take control and responsibility for their finances. If someone is told it was the big bad Payday loan companies fault they will never see what they did wrong, but if they budgeted properly in the first place they never would have had to use the Payday loan.

Willing2Learn wrote: »

I cannot understand how people cannot comprehend the definition of irresponsible lending.

When a payday loan by definition is "a small, short-term loan that is expected to be repaid on the borrower’s next pay day". Then when a payday loan offered their products over a far longer period, then that is just clearly irresponsible lending, no ifs, no buts. It was designed to ensnare the borrower in to a vicious cycle of increasing debt.

I am not anti-bank. I am pro-fairness.

I believe that adults should be able to make their own choices when it comes to financial products. As long as they are made fully aware of the interest rates and costs then it's the persons choice to take out such a poor product. When you start restricting products because some people aren't responsible enough to make their own financial decisions then it ends up going too far and responsible people lose you.

Let's compare debt to another issue of obesity according to Wikipedia "In 2014 84% of adults in England were classified as overweight or obese". So that sounds like quite a big issue and we all know things like biscuits and sweets high in sugar are a big contributor to this.
So does that mean that the shops are "irresponsible" for selling this items to people without checking the state of their health first?. Should all biscuits and sweets be banned and people should have the choice taken away from them?.

sourcrates

Let’s try another angle with this.

Just for one second Imagine you have applied for a payday loan, you get approved, money’s in your account within the hour.

It’s the morning of your payday, most banks deposit BACS payments in the early hours of the morning. but said payday lender attempts to take payment just after midnight, then tries again continuously until your paid at 6 am or whatever time, your bank account may have accrued fees for going over limit, and for each missed payment attempt, the PDL charged you £25, do you think that is fair ?

The reclaiming process not only covers loans which should never have been approved, but also charges unfairly applied to people’s accounts.

Takmon

sourcrates wrote: »

Let’s try another angle with this.

Just for one second Imagine you have applied for a payday loan, you get approved, money’s in your account within the hour.

It’s the morning of your payday, most banks deposit BACS payments in the early hours of the morning. but said payday lender attempts to take payment just after midnight, then tries again continuously until your paid at 6 am or whatever time, your bank account may have accrued fees for going over limit, and for each missed payment attempt, the PDL charged you £25, do you think that is fair ?

The reclaiming process not only covers loans which should never have been approved, but also charges unfairly applied to people’s accounts.

Well firstly if they successfully take payment and you get paid the same day your bank won't charge you any fees. Banks will only charge a fee if you remain overdrawn until the next day so this wouldn't be an issue.

If the Payday loan company takes payment just after midnight multiple times and adds a fee each times then yes that is unfair.

But if they clearly state that payment will be taken just after midnight and you will be charged a fee if the payment is unsuccessful then a sensible person would have the payment date set for the date after they are paid to ensure the money is in their account.

Just like on my bills account i know the Netflix payment is taken by card (as opposed to direct debit) so i have it set for a day after the money is transferred in to avoid any issues.

So someone who takes the time to understand exactly how the Payday loan works before taking it out can even avoid an unfair practice. But they probably would end up choosing to use another provider who doesn't charge a fee for an unsuccessful payment on the same day as a successful one.