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  • FIRST POST
    • Former MSE Helen
    • By Former MSE Helen 24th Feb 12, 9:20 AM
    • 2,324Posts
    • 971Thanks
    Former MSE Helen
    MSE News: OFT to investigate payday loan market
    • #1
    • 24th Feb 12, 9:20 AM
    MSE News: OFT to investigate payday loan market 24th Feb 12 at 9:20 AM
    This is the discussion thread for the following MSE News Story:

    "The controversial payday lending market will fall under the microscope of an Office of Fair Trading investigation ..."

Page 1
  • jamesd
    • #2
    • 24th Feb 12, 12:14 PM
    • #2
    • 24th Feb 12, 12:14 PM
    Excellent!
    • blacksta
    • By blacksta 24th Feb 12, 1:08 PM
    • 908 Posts
    • 447 Thanks
    blacksta
    • #3
    • 24th Feb 12, 1:08 PM
    • #3
    • 24th Feb 12, 1:08 PM
    it should be scrapped.
    I owe 3233 @ 0%
    • dealer wins
    • By dealer wins 24th Feb 12, 1:18 PM
    • 6,392 Posts
    • 12,811 Thanks
    dealer wins
    • #4
    • 24th Feb 12, 1:18 PM
    • #4
    • 24th Feb 12, 1:18 PM
    it should be scrapped.
    Originally posted by blacksta
    No, dont scrap the investigation, these payday lenders are not perfect.
    Choose life
  • Super Daz
    • #5
    • 24th Feb 12, 2:52 PM
    • #5
    • 24th Feb 12, 2:52 PM
    Good - about time
    • DCFC79
    • By DCFC79 24th Feb 12, 3:28 PM
    • 34,212 Posts
    • 21,608 Thanks
    DCFC79
    • #6
    • 24th Feb 12, 3:28 PM
    • #6
    • 24th Feb 12, 3:28 PM
    No, dont scrap the investigation, these payday lenders are not perfect.
    Originally posted by dealer wins
    But neither are those who borrow, dont meet the deadline for paying the loan back for whatever reason then cry wolf when the PDL takes the loan from the account.

    There are those PDL Co's that are a bit dodgy in what they do and they should be the ones the OFT focus on.
    Last edited by DCFC79; 24-02-2012 at 4:30 PM.
    • malcolmffc
    • By malcolmffc 24th Feb 12, 4:14 PM
    • 331 Posts
    • 175 Thanks
    malcolmffc
    • #7
    • 24th Feb 12, 4:14 PM
    • #7
    • 24th Feb 12, 4:14 PM
    I think it would be better for the OFT to investigate PDL borrowers and find out why they aren't capable of basic financial management.
    • DCFC79
    • By DCFC79 24th Feb 12, 4:32 PM
    • 34,212 Posts
    • 21,608 Thanks
    DCFC79
    • #8
    • 24th Feb 12, 4:32 PM
    • #8
    • 24th Feb 12, 4:32 PM
    I think it would be better for the OFT to investigate PDL borrowers and find out why they aren't capable of basic financial management.
    Originally posted by malcolmffc
    Can only hope for this.
    • pjsmiffy
    • By pjsmiffy 24th Feb 12, 5:38 PM
    • 61 Posts
    • 45 Thanks
    pjsmiffy
    • #9
    • 24th Feb 12, 5:38 PM
    Consider reporting some Pay Day Lenders to Advertising standards
    • #9
    • 24th Feb 12, 5:38 PM
    For those of you old enough to remember "follow the bear" being scrapped for encouraging under-age drinking I see little difference with puppets and catchy radio jingles.

    Who's 5 YO can sing the ...... add.

    Should pay-day loans really be advertised as a positive thing or as an emergency way to get out of a short tern tight spot?
  • LovelyLeeds
    Oh gawd, I notice the 'mis-sold' word has been made mention of in that report, I can see it now...

    ...I was sold a PDL for a gamble on the horses - my horse lost. If I'd won I could have paid it back - was I mis-sold?


    (I am actually glad the PDLs are being investigated though)
  • Apples2
    The investigation is welcome if nothing more to show the industry there are eyes on them.
    The massive majority take them out because their salary is short, ergo, they can't pay for something.

    A small group of oddities take them out for cashback and the bewildering hope it will look good on a credit file.

    We don't see many people admitting taking one with no intention of repaying, they can all "easily afford the repayments" . By some miraculous qwirk of bad fortune, they all have that "unforeseen change of circumstances".
    It is these people who need to be stopped but ironically would pass any new criteria.
    • chanz4
    • By chanz4 25th Feb 12, 10:25 AM
    • 10,018 Posts
    • 2,981 Thanks
    chanz4
    Think what will happen is less people will be accepted, driving borrowers to loan sharks and an up on NHS with broken bones
    Don't put your trust into an Experian score - it is not a number any bank will ever use & it is generally a waste of money to purchase it. They are also selling you insurance you dont need.
  • ihateyes
    But neither are those who borrow, dont meet the deadline for paying the loan back for whatever reason then cry wolf when the PDL takes the loan from the account.

    There are those PDL Co's that are a bit dodgy in what they do and they should be the ones the OFT focus on.
    Originally posted by DCFC79

    So if you missed your loan payment, you be happy for the bank to rai your bank account???

    These comanies use their sharp practice to get their money back

    End of Pal.... i dont hear you slaggin of people who have reclaimed charges back from the bank.

    The charges these companies charge are disproportiante to the loan amount.....
    Promo codes are never always cheaper..... isnt that right EuropCar?
    • malcolmffc
    • By malcolmffc 26th Feb 12, 8:29 AM
    • 331 Posts
    • 175 Thanks
    malcolmffc
    Every PDL borrower agrees to these charges when they take out the loan. Do you refuse to pay Tescos if you think your food shopping is too expensive?
  • Garry_Anderson
    It is BS to say the government wanted to stop loan-sharking - the corrupt beggars legalised it.

    The government decided they wanted a piece of loan-sharks action - now they realise that this was doomed to failure.
    • bengal-stripe
    • By bengal-stripe 26th Feb 12, 4:53 PM
    • 3,213 Posts
    • 2,112 Thanks
    bengal-stripe
    These comanies use their sharp practice to get their money back
    Originally posted by ihateyes
    Their punters use sharp practice to get the money in the first place. When they sign-up, quite a high percentage of customers are perfectly aware that they will not be in a position to repay within the agreed fortnight or month, but they rely on something to turn up. Or worse, they presume they can beat PDLs at the money-lending game. As long as they will receive (and can spend) the dosh, everything else is unimportant. So, it becomes a battle of wits and mutual dishonesty.

    We don't see many people admitting taking one with no intention of repaying, they can all "easily afford the repayments" . By some miraculous qwirk of bad fortune, they all have that "unforeseen change of circumstances".
    Originally posted by Apples2
    • Moneyineptitude
    • By Moneyineptitude 27th Feb 12, 2:29 AM
    • 23,617 Posts
    • 12,947 Thanks
    Moneyineptitude
    Every PDL borrower agrees to these charges when they take out the loan. Do you refuse to pay Tescos if you think your food shopping is too expensive?
    Originally posted by malcolmffc
    That's such a poor analogy, if I thought their food was too expensive I'd simply shop elsewhere just as anyone else could. Conversely, it's very often people who can't shop elsewhere for their loans who end up paying the exorbitant APR these firms charge.
    The firms badly need some form of regulation to make it harder for people to obtain easy credit which they'll likely find it difficult to pay back.
    • DCFC79
    • By DCFC79 27th Feb 12, 11:33 AM
    • 34,212 Posts
    • 21,608 Thanks
    DCFC79
    So if you missed your loan payment, you be happy for the bank to rai your bank account???

    These comanies use their sharp practice to get their money back

    End of Pal.... i dont hear you slaggin of people who have reclaimed charges back from the bank.

    The charges these companies charge are disproportiante to the loan amount.....
    Originally posted by ihateyes
    The charges are laid out(or i presume they are) for all to see so the borrower is aware of the charges and can decide whether its worth taking out a loan.
    • vzm56n
    • By vzm56n 1st Mar 12, 1:23 PM
    • 3 Posts
    • 0 Thanks
    vzm56n
    PDL: Responsible Lenders - Fraud
    One leadeing PDL sent me a demand for an overdue payment.
    Unfortunately, they had authorised a loan to somebody using my name and address - without any further validation.

    So the PDL sent 92.00 to a bank account (not mine) and a few months later contacts me with threats about non payment!

    The PDL have acknowledged thier mistake - but now my name and address has been placed on a check list for potential future fraud!

    I am not the only one.

    They need investigating - in my opinion.
    • gingeralan
    • By gingeralan 1st Mar 12, 9:54 PM
    • 216 Posts
    • 181 Thanks
    gingeralan
    One leadeing PDL sent me a demand for an overdue payment.
    Unfortunately, they had authorised a loan to somebody using my name and address - without any further validation.

    So the PDL sent 92.00 to a bank account (not mine) and a few months later contacts me with threats about non payment!

    The PDL have acknowledged thier mistake - but now my name and address has been placed on a check list for potential future fraud!

    I am not the only one.

    They need investigating - in my opinion.
    Originally posted by vzm56n
    That's crazy! This sort of lending needs to be controlled so that it it's only offered to businesses who may have a slight cash flow problem, not people who can't afford to live on their current income.

    The fact they don't even check the id of their borrowers is ludicrous and open to lots of fraud. These shysters need their wings well n truly clipped
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