New Lie - Cyndi Lauper moment

[amcdonald]

If he wants to stop irresponsible borrowing why not just ban the Labour Party

[vetran]

I would cap the interest rates and the charges. Many other countries do it.

Then the company is responsible for costs associated with poor lending decisions.

Most of the public are either ignorant or not in a good place when they resort to payday loan companies.

The head of the organisation was asked why no cap after admitting his members were actually below about 40%. He hedged.


Base + 50% is simple and profitable enough for credit unions.

The suggestion people are so poor they need to pay £200 for £100 3 month loan is obviously misguided. Their situation is not going to change in 3 months or they could get a regular loan/pay advance.

[Dominic Connor]

It's just posturing

Payday loan companies are unpopular, so Mlliband can play Robin Hood, the joy of it is that he doesn't even have to do anything, just promise that he'll give away sweeties paid for by someone else.

This is a messy area, if you kill Wonga etc then people will often be forced to illegal moneylenders whose recovery procedures can be bloody brutal.

OTOH they use the fact that many people who use them are financially illiterate and sometimes simply illiterate to screw them over.

Wonga does actually try reasonably hard to at least tell people what they will end up paying, the question is whether even when they tell someone that the effective interest rate is 489% in big letters whether the state ought to stop you from taking out that loan ?

Certainly there is a role for making the terms both simpler and in a form that allows for easy price comparison, this will tend to make rates lower, but that isn't sexy is it ? Milliband wants to punish bad people and get a headline.

The issue that Millband isn't prepared to tackle is why so many people end up in the piss so often and 20 million quid is not going to fix it, partly because that is a pathetic amount of money for a problem like this and partly because it involves helping people sort out their own lives which is messy, complex and can sometimes make things worse.

You recall the UBS trader who lost $4.2 billion ?

He borrowed from Wonga.

He was "financially sophisticated", but obviously not sophisticated enough, the Wonga type companies are a symptom of the underlying problem, in his case spiraling debt.

[vetran]

Because they peddle the same lies time after time ?

And aaarrrgh their should be a NSFW warning of Wallace

Close, other Album! But I like your thinking.

[amcdonald]

Where does Cindy Lauper fit into this?

Because they peddle the same lies time after time ?

And aaarrrgh their should be a NSFW warning of Wallace

[AtW]

Where does Cindy Lauper fit into this?

[Freaki Li Cuatre]

Where does Cindy Lauper fit into this?

[AtW]

Miliband is very good at driving large donations to other parties - Cons are very pleased now for sure.

[amcdonald]

Lol change the law to introduce something bad, then blame everyone else for causing the problem and introduce a new tax to fix it

[vetran]

Payday loan firms face £20m tax raid under Labour plans | Mail Online

Payday loan firms face £20million tax raid under Labour plans to bankroll cheaper credit for struggling families
Miliband warns too many face a 'personal credit crunch' every month
Labour government would impose extra levy on firms like Wonga
Money would be used to fund alternatives like non-profit credit unions