Hmm sell Payday loan shares

[ZARDOZ]

So you are of limited means, you borrow £100 until payday and then pay £175 back next month out of your same pay cheque. the circle doesn't stop, you slip further & further into debt paying outrageous interest rates. Eventually you owe thousands and you are stuck.

Better to fall at the first hurdle and reach out to your credtors such as Council tax, Energy & credit card firms who are carefully watched t make sure they deal with those struggling properly. Yes there are bad examples of their behaviour but they are restricted in charges etc.

Most people are borrowing this money because they have a low income and/or they are poor managers of money. That is an issue that probably needs to be addressed before restricting Pay Day lenders.

There is a wider debate of how increasingly credit is being used to supplement the widening gap between incomes, prices and lifestyle expectations.

It is possible to get a 0% credit without even having a job. So we are talking borrowing of last resort here, which is always going to be expensive.

[Zero Liability]

I've been careful to only ever use credit cards for short term finance. Nonetheless, regulating payday lenders out of existence isn't going to make the demand for their offering vanish. It's part of this idea that you have a right to credit and that credit is the solution to everything. This is irrespective of my feelings towards the people who tend to run these firms. The thing is, they're hardly alone in the sort of tactics they employ. The oh so altruistic government is even in on it. Not that it makes it right. They shouldn't be singled out for it, however.

[SpontaneousOrder]

So you are of limited means, you borrow £100 until payday and then pay £175 back next month out of your same pay cheque. the circle doesn't stop, you slip further & further into debt paying outrageous interest rates. Eventually you owe thousands and you are stuck.

Better to fall at the first hurdle and reach out to your credtors such as Council tax, Energy & credit card firms who are carefully watched t make sure they deal with those struggling properly. Yes there are bad examples of their behaviour but they are restricted in charges etc.

What about someone like me who needs a grand to tide me over to make a large purchase, while money is being moved around my different accounts in the background?

it takes time to free up liquidity, and consequently I've borrowed money, over very short terms, quite often. I've been lucky enough to know people who could lend it to me.

[vetran]

There is another side to this. The customers of payday loans most often cannot get a loan anywhere else.

The mainsteam lenders will not participate in the risky low end market .


The high interest and charges are the price for the risk involved.

Prior to Payday outfits, the options for that group were VERY limited.

Inevitably many outfits will now withdraw from the Market and some customers will be forced to resort to black market loan sharks or possibly crime.

So you are of limited means, you borrow £100 until payday and then pay £175 back next month out of your same pay cheque. the circle doesn't stop, you slip further & further into debt paying outrageous interest rates. Eventually you owe thousands and you are stuck.

Better to fall at the first hurdle and reach out to your credtors such as Council tax, Energy & credit card firms who are carefully watched t make sure they deal with those struggling properly. Yes there are bad examples of their behaviour but they are restricted in charges etc.

[SpontaneousOrder]

There is another side to this. The customers of payday loans most often cannot get a loan anywhere else.

The mainsteam lenders will not participate in the risky low end market .


The high interest and charges are the price for the risk involved.

Prior to Payday outfits, the options for that group were VERY limited.

Inevitably many outfits will now withdraw from the Market and some customers will be forced to resort to black market loan sharks or possibly crime.

Careful... that sounds a bit like common sense. Dangerous.

[ZARDOZ]

There is another side to this. The customers of payday loans most often cannot get a loan anywhere else.

The mainsteam lenders will not participate in the risky low end market .


The high interest and charges are the price for the risk involved.

Prior to Payday outfits, the options for that group were VERY limited.

Inevitably many outfits will now withdraw from the Market and some customers will be forced to resort to black market loan sharks or possibly crime.

[KentPhilip]

Now we find the real reason that the Church of England sold its Wonga shares - just before they dived in value

[MicrosoftBob]

They exist because the government legitimised loan sharks, at least now the worst excesses are being tamed

[SimonMac]

That the payday loan companies should be in the media highlight and be making booming business tells a lot about the UK economy in general. How did it get to this state of affairs ? A decade ago payday loan companies were used by a tiny minority and the money they made was negligible such that there were probably one or two players in the biz. Now its mushroomed into boom of some sort with hundreds of them.

Are they booming because more people need them, or that the prevalence of them are more up front, has the need always been there they are just easing to get these days? 10 years ago the same number of people would be going to the old style door stop loans, this isn't a new thing

[fullyautomatix]

That the payday loan companies should be in the media highlight and be making booming business tells a lot about the UK economy in general. How did it get to this state of affairs ? A decade ago payday loan companies were used by a tiny minority and the money they made was negligible such that there were probably one or two players in the biz. Now its mushroomed into boom of some sort with hundreds of them.

[vetran]

Payday Loan Caps To Cut The Cost Of Borrowing | LBC

The headline measure was a limit in the overall cost of a loan, which the Financial Conduct Authority (FCA) said should never exceed 100% of the total amount borrowed.

For example, if a borrower was to take out a loan of £300, the person's liability would not be more than £600.

Fixed default fees were also to be capped at £15, the regulator said, with interest on unpaid balances and default fees not exceeding 0.8% per day of the outstanding amount.

excellent news