Guest MattP Posted 29 November 2012 Share Posted 29 November 2012 Glad these weren't around when I was a younger man, would have got into all sorts of shit. Link to comment Share on other sites More sharing options...
James. Posted 29 November 2012 Share Posted 29 November 2012 You mean this post: This doesn't really explain it though, if it was only 3% then it wouldn't explain the massive growth in the industry. It doesn't say at what point they sell the debt either, are they selling the debt + interest, if so what size of debt would they sell? At what point do they decide a debt is worth keeping or selling? You take out £100 loan and it doesn't get paid back for a while and becomes £1000 debt, you sell that for 10% you get £100 back so break even, or am I missing something here? £100 loan at these interest rates can easily reach £1000 debt. It may be 3% but that doesn't mean they are only making 3% profit or whatever. It just means they are making 3% on their RWA. RoRWA may be the benchmark that you would use to compare different lenders but it doesn't really give the best indication of actually how profitable a company is. And it's profitability which will drive market growth. Link to comment Share on other sites More sharing options...
Captain... Posted 30 November 2012 Share Posted 30 November 2012 Just seen an advert for pounds to pocket, the woman on the advert says. 'I was turned down for a loan by the major lenders, but pounds for pocket gave me a loan, quick and easy, I wish I had gone to them first' You tell me they are not targeting people who are bad with money. Link to comment Share on other sites More sharing options...
DB11 Posted 30 November 2012 Share Posted 30 November 2012 http://www.metro.co.uk/news/newsfocus/919260-are-payday-loans-really-the-answer-to-help-us-out-of-our-debt-problems?ITO=facebook Link to comment Share on other sites More sharing options...
The Blur Posted 30 November 2012 Share Posted 30 November 2012 http://www.change.org/en-GB/petitions/members-of-the-house-of-lords-support-an-interest-cap-on-pay-day-loans?utm_source=action_alert&utm_medium=email&utm_campaign=14192&alert_id=rnzNJXsvej_dBwtBecPck Link for a petition ongoing to put an interest cap on payday loans. It is making inroads in the Government at the moment. Link to comment Share on other sites More sharing options...
Rincewind Posted 30 June 2013 Share Posted 30 June 2013 Thought this relevant to this thread. It's a long article so not read it all so it would be wrong to comment either way. http://www.independent.co.uk/money/loans-credit/special-report-the-dark-side-of-credit--a-million-new-payday-loans-every-month-8680018.html One comment saying payday loans are bad http://www.independent.co.uk/voices/editorials/editorial-the-high-price-of-payday-loans-8679941.html For balance and fairness we Need a comment now saying they are good. Moosebreath? Link to comment Share on other sites More sharing options...
Webbo Posted 30 June 2013 Share Posted 30 June 2013 If you don't like the interest they charge don't take out a loan with them. Link to comment Share on other sites More sharing options...
purpleronnie Posted 30 June 2013 Share Posted 30 June 2013 The rates are silly and there should be a limit placed on that. Link to comment Share on other sites More sharing options...
MooseBreath Posted 30 June 2013 Share Posted 30 June 2013 As long as the amount you are borrowing, the amount you are to pay back and when and the consequences of not doing so are clear then there is no problem. Some people will abuse it and get themselves in trouble, but it's the old dilemma of how much are you willing to restrict the freedom of the many to protect the few from themselves. In the UK we often seem to fall on the side of heavy restrictions, a mummy state, which assumes we're all idiots, while I personally prefer the common sense approach of simply ensuring people are provided with every opportunity to make themselves aware of the risks, and from there it's up to them. Thread has been done to death really, hasn't it? I still find myself agreeing with this guy. Link to comment Share on other sites More sharing options...
Rincewind Posted 30 June 2013 Share Posted 30 June 2013 If you don't like the interest they charge don't take out a loan with them. Good advice and I would say the same I'm glad that I am in a position not to consider a loan as an option to pay a bill. Link to comment Share on other sites More sharing options...
Webbo Posted 30 June 2013 Share Posted 30 June 2013 Good advice and I would say the same I'm glad I don't have to make a choice. Nobody has to make the choice, they don't hold a gun to your head. If these loans were banned they wouldn't be able to take one out anyway. Link to comment Share on other sites More sharing options...
Rincewind Posted 30 June 2013 Share Posted 30 June 2013 I've only used them once. It was when my paycheck was late and a few direct debits were due. I would not like that situation to pop up every month. That is why I would advise people to stay clear of them. Link to comment Share on other sites More sharing options...
ithuriel Posted 30 June 2013 Share Posted 30 June 2013 Wonder what would happen if someone commited identity theft and took a loan out in your name? Link to comment Share on other sites More sharing options...
Rincewind Posted 30 June 2013 Share Posted 30 June 2013 Wonder what would happen if someone commited identity theft and took a loan out in your name? Well the loan company would not worry as long as they were paid back.. ATM I couldn't get one anyway so would not want one. Link to comment Share on other sites More sharing options...
MooseBreath Posted 30 June 2013 Share Posted 30 June 2013 Wonder what would happen if someone commited identity theft and took a loan out in your name? You'd report it to the police and have your name cleared. Link to comment Share on other sites More sharing options...
DANGEROUS TIGER Posted 30 June 2013 Share Posted 30 June 2013 Put simply, you should never use them under any circumstances - if you can't pay the bills for the month then talk to the people you owe money to, if it's to buy some luxury item then just save up for it instead. Taking out one of these payday loans is just asking for trouble. Apart from being horrendously bad value, it's very easy to slip further and further into debt like your nephew. While they're immoral, there's certainly nothing illegal about them - everything's there in black and white and people who get into trouble with them only have themselves to blame. Well said, and so right. Nice to be able to agree with you for once. Link to comment Share on other sites More sharing options...
Rincewind Posted 30 June 2013 Share Posted 30 June 2013 I agree too and I am sure the majority of people do. Oh if only everyone with a debt problem had the wisdom of the posters on this forum money lenders and sharks would go out of business. Link to comment Share on other sites More sharing options...
Guest MattP Posted 1 July 2013 Share Posted 1 July 2013 I agree too and I am sure the majority of people do. Oh if only everyone with a debt problem had the wisdom of the posters on this forum money lenders and sharks would go out of business. You make it sound like people should feel guilty for having common sense and being capable of making the right decision. This might surprise you but 90% of the population aren't complete retards. Link to comment Share on other sites More sharing options...
Rincewind Posted 1 July 2013 Share Posted 1 July 2013 You make it sound like people should feel guilty for having common sense and being capable of making the right decision. This might surprise you but 90% of the population aren't complete retards. I never said they were. If someones choice was to have their house possessed if they don't pay a mortgage payment within a week taking out a loan or putting a gun to their family and their own head what advice would you give? How many adverts are on the TV now that say how easy it is to take out one of these loans? The City Centres are full of the shops now. Pawn shops are big business now. Times are hard. More people are being hit that were not affected before. Yes I'd say never use them but I don't have the baliffs knocking at my door. If I had no income I would be in deep shit within 3-6 months and that is with contacting utility companies etc about reduced payments but I have family who I could turn to for help. Some people do not. Link to comment Share on other sites More sharing options...
Charl91 Posted 1 July 2013 Share Posted 1 July 2013 I never said they were. If someones choice was to have their house possessed if they don't pay a mortgage payment within a week taking out a loan or putting a gun to their family and their own head what advice would you give? But if you don't really have the means to pay, then it probably means you also don't have the means to pay back the loan + the interest. All it means is you're going to lose your house a month or so down the line anyway, only with even greater debt. Link to comment Share on other sites More sharing options...
Guest MattP Posted 1 July 2013 Share Posted 1 July 2013 I never said they were. If someones choice was to have their house possessed if they don't pay a mortgage payment within a week taking out a loan or putting a gun to their family and their own head what advice would you give? How many adverts are on the TV now that say how easy it is to take out one of these loans? The City Centres are full of the shops now. Pawn shops are big business now. Times are hard. More people are being hit that were not affected before. Yes I'd say never use them but I don't have the baliffs knocking at my door. If I had no income I would be in deep shit within 3-6 months and that is with contacting utility companies etc about reduced payments but I have family who I could turn to for help. Some people do not. If you have got into that position where you can't pay it then you have should have seen it coming a while back and downsized before it did. What you certainly don't do is get into even more debt. Link to comment Share on other sites More sharing options...
RobHawk Posted 1 July 2013 Share Posted 1 July 2013 My main issue with payday loan companies (apart from the ridiculous interest) is that they offer loans to people who don't even have a payday! Its ridiculous, they target the vulnerable in order to make money! But they don't even stop at making a little bit of money, they go full on for 1000's% interest. It's easy to say don't take one, you don't pay the interest but some people are left where they feel they have no choice! The lack of financial literacy taught in this country is awful. Unfortunately many are having to learn by experience and that isn't always the right way to go. It's amazing the amount of 16-18 year olds who believe that credit cards are evil and cause debt but that payday loans are ok! Many don't understand that £100 on a credit card for a month is likely to be far cheaper than from Wonga etc. They hear people bang on about how awful credit card debt can be (yes it can) but aren't taught that actually credit cards can be very useful and positive if you use them the right way. But % on payday loans should be capped! They are horrible companies and if it was up to me, i would shut them all down! Link to comment Share on other sites More sharing options...
Rincewind Posted 1 July 2013 Share Posted 1 July 2013 Redundancy, loss of partner, a mental breakdown, depression , having to devote full care to a partner loved one, child, loss of a child, hospilisation of a partner child, reduction of hours/pay. All these can be sudden and can be seen coming with hindsight. Link to comment Share on other sites More sharing options...
RobHawk Posted 1 July 2013 Share Posted 1 July 2013 If you have got into that position where you can't pay it then you have should have seen it coming a while back and downsized before it did. What you certainly don't do is get into even more debt. I'm not trying to be offensive when i say this Matt, but it's not always as easy as just having a problem and solving it. Many people in debt have other pressures that have caused them to get into debt, ill health in the family, mental health issues etc. It's a little small minded just to say, they should have seen this and they should have done that. When people are in this situation there are many pressures that occur because they are in debt let alone anything else that may be happening. Link to comment Share on other sites More sharing options...
Webbo Posted 1 July 2013 Share Posted 1 July 2013 I love it how there's a payday loan company ad at the bottom of this page. Link to comment Share on other sites More sharing options...
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