Payday lenders - any sympathy?

[BrilloPad]

BBC News - Payday lenders bite back: 'Don't call us loan sharks'

"What unites all the customers is dissatisfaction with banks." - so in essence payday lenders are better than banks so are okay? Well Idi Amin was more moral than Hitler - does that make him okay?

About time there was a sensible law on usurpary - like APR rates capped at 30%.

If people really need to borrow £100 then why not save?

[amcdonald]

Blame the Labour Party for exploiting the workers

They made loan sharks legal, presumably inexchange for money to pay off some of the Labour parties massive debts

[northernladuk]

If people really need to borrow £100 then why not save?

Because they need fags and alcohol now!!!

Preying on financial unstable people isn't a new phenomenon though. There used to be a shop in Birmingham that allowed low income or credit unworthy people buy electrical appliances many years ago. Small shop front with a load of items in an a huge back office of lawyers/financial bods chasing the debts that were inevitable racked up. Was just a front to get people in to debt and then hammer them with interest and penalties.

[eek]

Because they need fags and alcohol now!!!

Preying on financial unstable people isn't a new phenomenon though. There used to be a shop in Birmingham that allowed low income or credit unworthy people buy electrical appliances many years ago. Small shop front with a load of items in an a huge back office of lawyers/financial bods chasing the debts that were inevitable racked up. Was just a front to get people in to debt and then hammer them with interest and penalties.

The other argument is that people would just use the local (un)friendly loan shark rather than an expensive payday loan if the other option wasn't there.

[GazCol]

Because they need fags and alcohol now!!!

Preying on financial unstable people isn't a new phenomenon though. There used to be a shop in Birmingham that allowed low income or credit unworthy people buy electrical appliances many years ago. Small shop front with a load of items in an a huge back office of lawyers/financial bods chasing the debts that were inevitable racked up. Was just a front to get people in to debt and then hammer them with interest and penalties.

To an extent I think that's what any company offering credit does. I did a gig at a well known insurance brokerage a few years ago implementing a new credit control module into their CRM platform and was shocked to see that failed DD payments was a KPI of the business. That is of the business, not the department, they actually targeted making £x amount of revenue from DD penalty charges.

[northernladuk]

To an extent I think that's what any company offering credit does. I did a gig at a well known insurance brokerage a few years ago implementing a new credit control module into their CRM platform and was shocked to see that failed DD payments was a KPI of the business. That is of the business, not the department, they actually targeted making £x amount of revenue from DD penalty charges.

I am sure you are right and but every company will have a risk rating they are willing to deal with, a bit like motor insurance. This particular company gave credit to those that were blatantly not worthy of it so were constantly in the local papers and in trouble with whatever body controlled giving credit to the unworthy. There is a line and this company made a point of doing business on the wrong side. Wish I could remember what they were called.

[SimonMac]

Pay Day lenders provide a service because there is a need for them as the main high street banks have messed up, I think they are being victimised against because the main thing seems to be the APR which people complain about when A) Pay Day Loans are just that, meant for short term so quioting an annual rate is not fair and B) The Govt brought in rules which state that the APR has to be quoted on all loans at a time when Pay Day Loans didn't exist

[eek]

I am sure you are right and but every company will have a risk rating they are willing to deal with, a bit like motor insurance. This particular company gave credit to those that were blatantly not worthy of it so were constantly in the local papers and in trouble with whatever body controlled giving credit to the unworthy. There is a line and this company made a point of doing business on the wrong side. Wish I could remember what they were called.

Bright House?

[SimonMac]

BBC News - Payday lenders bite back: 'Don't call us loan sharks'

"What unites all the customers is dissatisfaction with banks." - so in essence payday lenders are better than banks so are okay? Well Idi Amin was more moral than Hitler - does that make him okay?

About time there was a sensible law on usurpary - like APR rates capped at 30%.

If people really need to borrow £100 then why not save?

Because to some people £100 is a meal out, to others it is the choice between heating and eating, and a logal cap at 30% will move more people to illegal sources of funds

[RedSauce]

I have no sympathy with the lenders. In the majority of occurrences, people require the services of these companies for reasons that are of their own doing. They obviously think the interest rate is a lesser evil than not having the money, if there wasn't demand for the services then they wouldn't be there.