Amigo Loans Irresponsible lending complaints thread

Davy_Jones_II

But if the costs are increased or the interest is limited then the already slim margins will turn to zero, or negative, so no new companies will want to be in that market.

Firms like Wonga are not massively profitable, they make a decent amount, but they also have very large systemic risks.

You can not accommodate lending money to someone who’s likely to default without charging a very large rate of interest, and the shorter the loan, the higher the interest needs to be to recoup the cost of the defaults.

We have a simple choice, treat competent adukts as competent adults, and let them both borrow and be responsible for the consequences, or pass the responsibility to the lending companies, and watch rates go through the roof or credit be withdrawn.

I suspect it’s the second option that’ll be where we end up, with people on low wages simply having to save up and pay for things themselves.

This would be good for everyone except the lenders and Sky.

boo_star

Les79 wrote: »

People grumble all of the time about consumer products. Check out the Praise, Vent and Warnings board or, at a push, the Consumer Rights one! Being rejected for credit may have irked people, but it would not have raised the possibility of "irresponsible lending". These lenders targeted certain groups of people, and *some* took it to another level by not actually doing the responsible thing of rejecting people in circumstances which dictated it.

So you are right in that there might have been complaints of the nature you describe, but the rub is that they'd have little to no point to argue.



Reminds me of the Brexit scaremongering. The reality is that other companies will pop up in their place, and in fact a few PDL's and similar lenders are already making efforts to remain in the market. The market won't disappear overnight.

Also, it isn't strictly about the APR rates!!! Nothing inherently wrong with super high rates if the borrower agrees, but rather the way in which the company treats the borrower.



Surely that just pushes the burden onto the UK government/taxpayer? More knife crime means more money towards the police service, the NHS, the council/charities. Also has the potential to create some significant class divisions.... Maybe it also reduces your quality of life a bit?

Don't get me wrong, anything to do with society as a whole is a tricky thing to figure out, but SURELY it is about making sure that people from all backgrounds are broadly accommodated? People shouldn't have to rely on dodgy Steve from the local pub, and people also shouldn't experience "irresponsible lending" (PPI counts, by the way...).

They just won't be lent the money. Wonga, Provident, Aqua, Vanquis, Amigo don't exist because people don't know about the alternatives, they exist because the alternatives don't want to lend them money.

So I'd ask the question... If people won't be lent the money from a prime lender, why do they continue to borrow instead of defaulting, going for a DMP, IVA, bankruptcy? It'll end the same way anyway?

I know it's a bit harsh but sometimes you need to be.

Breaking eggs and omelettes springs to mind.