Payday loans

[GTIR]

Are they just for the type who's on benefits and a bit, unedmercated?
All the adverts seem to be on in the daytime (When I'm at work >cough<) so surely that saying something?

This brings me to the conclusion that thickos need protecting from themselves.

Why the big hoohaa about the interest charges and the fact the dimbos can "roll over" their loan thus increasing their loan.
I also hear that the amount if fraud is higher than "normal" loan companies but I'm guessing the payday lot don't care. Worth the risk I suppose.

I wonder how much tax the payday lot pay per annum?

[soad]

Yes, they're strictly for the poor fkers.
A bit like those cash converter type places, where chavs haul their stuff to pawn.

A big business too, profits must be huge.

[David87]

I think Wonga are making about £1m profit a week.

[s p a c e m a n]

I heard a good one today: Once you have a payday loan company on your bank account no one else will lend you money, so you can only use payday loans from then on.

[VinceFox]

GTIR said:

Are they just for the type who's on benefits and a bit, unedmercated?
All the adverts seem to be on in the daytime (When I'm at work >cough<) so surely that saying something?

This brings me to the conclusion that thickos need protecting from themselves.

Why the big hoohaa about the interest charges and the fact the dimbos can "roll over" their loan thus increasing their loan.
I also hear that the amount if fraud is higher than "normal" loan companies but I'm guessing the payday lot don't care. Worth the risk I suppose.

I wonder how much tax the payday lot pay per annum?

UnedJERmercated.

[Mojooo]

Essentially yes - you can always argue that people are responsible for their own borrowing.

However with the recession all sorts of people are finding themselves shrot of cash and needing emergency funds.

I think the problem with the payday lending sector in general is the high cost, ease of which they keep letting you roll over and the way they keep adding charges to keep you perpetually in debt.

They have also been known to be somewhat aggresive in debt colelcting and using continous payment authorities to hammer peoples bank accounts for money.

Finally, they hardly carry out proper affordability checks which is a requirement of the Consuemr Credit Act (although it is a bit vague).

[eldar]

They lend to people the banks won't lend to. The bad risks. They choose to borrow from the church of Wonga, in spite of knowing the interesting APR. What is the problem?

[MoelyCrio]

Payday lenders are a bad solution to the problem of unlicensed loan sharks.

With a bit of balls the Post Office could have completely nailed this market.

FCA regulation is, as usual, 12 months late.

[Jasandjules]

eldar said:

They lend to people the banks won't lend to. The bad risks. They choose to borrow from the church of Wonga, in spite of knowing the interesting APR. What is the problem?

I think for many they would rather not borrow at such "interesting" APRs, but have no choice IF they want to borrow money. Now, the question of whether someone who can't afford to pay it back should borrow it is a different matter.

[Johnnytheboy]

I blame George Osborne.

[crosseyedlion]

Everyone always ignores the fact that often a payday loan is cheaper than going over an overdraft limit. Used responsibly they are often the lesser of 2 evils

[eldar]

Jasandjules said:

I think for many they would rather not borrow at such "interesting" APRs, but have no choice IF they want to borrow money. Now, the question of whether someone who can't afford to pay it back should borrow it is a different matter.

They have that choice. Chardonnay needs a new iphone5, now. Borrow or wait?

[aw51 121565]

eldar said:

Jasandjules said:

I think for many they would rather not borrow at such "interesting" APRs, but have no choice IF they want to borrow money. Now, the question of whether someone who can't afford to pay it back should borrow it is a different matter.

They have that choice. Chardonnay needs a new iphone5, now. Borrow or wait?

No she doesn't... Oh!!

[steve singh]

eldar said:

They lend to people the banks won't lend to. The bad risks. They choose to borrow from the church of Wonga, in spite of knowing the interesting APR. What is the problem?

I suspect Banks do want to lend to them but their hands are tied.

[DaveCWK]

I feel sorry for the people who use these - I bet many of them end up in a cycle of needing to take one out a the end of every month. As a method of managing finances it's completely alien to me.

[Ozzie Osmond]

eldar said:

They choose to borrow from the church of Wonga, in spite of knowing the interesting APR. What is the problem?

In much the same way that heroin addicts choose to get their next fix.

The only mystery is why the authorities have taken so long to get to grips with this outrage.

[TRB]

I needed to borrow a 6 figure sum to help finance a big purchase/deal a few years ago which I borrowed from a mate (technically his dad). I gave him 5% 'interest' on the loan, which took me 60 days to pay back (it could have taken a lot longer), plus I split whatever I made from the deal 50/50 with him. If it had been a published APR it would have been ludicrous, but it suited my needs at the time.

With the amount of loans Wonga are lending, we must all know people who are using it.

[steve singh]

APR is not relevant to short term borrowing in reality...

[onyx39]

Wonga have got me out several holes in recent months.
Many peoples financial situations is not what it was pre-recession.
As long as you are aensible, pay it back when you are supposed to, and don't borrow stupid amounts, it's proving a lifeline.

[Mojooo]

Most peopel dont care about the APR I imagien so although clear advertising is to be welcomed it is not the be all and end all.
It is well known that PDL amke their money by roll overs and default charges.