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  • FIRST POST
    • Willing2Learn
    • By Willing2Learn 15th May 19, 1:49 AM
    • 3,251Posts
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    Willing2Learn
    Payday loan complaints reach five year high
    • #1
    • 15th May 19, 1:49 AM
    Payday loan complaints reach five year high 15th May 19 at 1:49 AM
    Source: https://www.bbc.co.uk/news/business-48268474

    Complaints against payday lenders have soared to a five year high, the industry watchdog has said.

    There were nearly 40,000 new complaints brought last year, up a "startling" 130% on the 17,000 the previous year, the Financial Ombudsman Service said.

    In too many cases people have been left to struggle with debt, it said.

    Short-term lender industry body the Consumer Finance Association (CFA) said most of the complaints dated back a number of years.
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Page 3
  • archived user
    So illegal loan sharks set a precedent? Wake up.

    Approx x10 people use pay day lenders (2 mill) in comparison to illegal loan sharks (190k).
    Originally posted by Turtle87
    There was a case in the Hull Daily Mail a few years ago of a loan shark who got sent to prison. He would charge double what was borrowed so to borrow 100 you'd repay 200. When you calculated the interest rate it made him look like bargain of the century compared to payday lenders and indeed many of the comments on the article on their website said the same. Had he not got a bit lairy with a couple of defaulters he would have probably still had a decent client base who were being provided a much better deal than Wonga et all.
    • Malthusian
    • By Malthusian 16th May 19, 4:13 PM
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    Malthusian
    He would charge double what was borrowed so to borrow 100 you'd repay 200. When you calculated the interest rate it made him look like bargain of the century compared to payday lenders and indeed many of the comments on the article on their website said the same.
    Originally posted by Tarambor
    How much did he charge to defaulters? Rather more than legitimate PDLs, I suspect.

    There's no point saying "His loans were bargain of the century as long as you don't default" because most payday loan borrowers do default.
    • Nasqueron
    • By Nasqueron 17th May 19, 9:21 AM
    • 7,573 Posts
    • 4,788 Thanks
    Nasqueron
    There was a case in the Hull Daily Mail a few years ago of a loan shark who got sent to prison. He would charge double what was borrowed so to borrow 100 you'd repay 200. When you calculated the interest rate it made him look like bargain of the century compared to payday lenders and indeed many of the comments on the article on their website said the same. Had he not got a bit lairy with a couple of defaulters he would have probably still had a decent client base who were being provided a much better deal than Wonga et all.
    Originally posted by Tarambor

    A pay day loan firm even if they charged 3650% would still be less than that unless the loan was over a long period. It depends how long this shark loaned for. A loan for say 500 over 5 days is 50 a day interest i.e. 750 to repay, more realistic numbers for a PDL is half that rate - a 500 loan might cost someone 600 or so total not 1000
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