Payday loans!

LOI Stats · 15-05-2013 02:34PM

Sheffield Wednesday Football Club recently turned down a lucrative sponsorship deal from one of these payday loan companies. Fairplay to them.

http://www.independent.co.uk/sport/football/news-and-comment/sheffield-wednesday-turns-down-payday-lender-as-sponsorship-deal-8613057.html

Pudders · 15-05-2013 03:43PM

Retrovertigo wrote: »

There is a pecking order for direct debits in banks in the UK. So if someone gets paid on the 1st of the month and has several direct debits, priority debits such as mortgage etc. are honoured first, any kind of payday loan is way down the list. In fact some payday companies have priority over others.

If either have a direct debit on your account details OR on your card, not both. Making an attempt on an account with no funds generates a fee to the customer of around 20-30 pounds, so to continually do this will rack up charges for the customer and is a big no no. The banks fraud department can also pick up on too many attempts and suspend the debit.

What year where you doing your due diligence? Certainly within the last 5 years regulatory control has been strengthened due to the number of loans being given out, any cowboys have been fined to death or shut down. It is a massive market and the companies still operating will do anything not to come to the attention of the FSA in fear of a revoked license.

If someone calls your workplace and says "paydayloan company" they are breaking data protection and thus if you contact the company and ask for the recorded call the loan will be immediately written off, the person fired and a grovelling apology will be issued. Plain and simple.

9 months ago.

Payday loan sector in England is regulated under the consumer credit act and thus by the OFT and NOT the FSA. The FCA will take over the regulation from 2014. So they have no fear of the FSA. Look at the FSA register and give me one authorised payda lender. There is none as they are not regulated by the FSA. You can serach here:http://www.fsa.gov.uk/register/firmSearchForm.do

On the direct debits, that is untrue, there is no legal ranking / priority of direct debits. The only ranking is by date.

On the workplace, you again are incorrect. Point out the part of the data protection act which prevents a company from giving their name.

On the denial by you that a payday loan ill restrict your credit here is one of many banks which will not lend to people who have taken out a paydya loan:
http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/9395294/Payday-loans-could-cost-you-a-mortgage.html

I don't know why you are trying to defend an industry that is STILL riddled with chancers and charltans other than you must have a vested interest in supporting them. The industry always trots out the line "report wrong doings" knowing that most consumers who need payday loans are financially illiterate and don't know whom, how or what to report.

runawaybishop · 15-05-2013 03:45PM

Pudders wrote: »

9 months ago.

Payday loan sector in England is regulated under the consumer credit act and thus by the OFT and NOT the FSA. The FCA will take over the regulation from 2014. So they have no fear of the FSA. Look at the FSA register and give me one authorised payda lender. There is none as they are not regulated by the FSA. You can serach here:http://www.fsa.gov.uk/register/firmSearchForm.do

On the direct debits, that is untrue, there is no legal ranking / priority of direct debits. The only ranking is by date.

On the workplace, you again are incorrect. Point out the part of the data protection act which prevents a company from giving their name.

On the denial by you that a payday loan ill restrict your credit here is one of many banks which will not lend to people who have taken out a paydya loan:
http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/9395294/Payday-loans-could-cost-you-a-mortgage.html

I don't know why you are trying to defend an industry that is STILL riddled with chancers and charltans other than you must have a vested interest in supporting them. The industry always trots out the line "report wrong doings" knowing that most consumers who need payday loans are financially illiterate and don't know whom, how or what to report.

That's all the UK though, how is it relevant to Ireland?

magicmushroom · 15-05-2013 04:08PM

If it's just a once off thing used for a desperate situation, I would go to Wonga. I don't work there but have a lot of the info on how it works as I was offered a position a while back.

By law you have to advertise what the % would be annually but you don't borrow for a year, you borrow for days so you're not paying back 1000% like someone said. It's just an advertising law that they have to abide by.

I do agree that borrowing 100e and paying back 125e is high, as I said only do it as a once off, but if I was eating Weetabix for a week I'd probably do it.

Just make sure you pay it back on the day you agreed, otherwise you will end up paying more than you originally thought you might.

And make sure you don't get into this situation again! Even saving a tenner a month will add up over a time, start saving something from now on! (says me whose savings balance is 0.00 lol)

Retrovertigo · 15-05-2013 04:19PM

Pudders wrote: »

9 months ago.

Payday loan sector in England is regulated under the consumer credit act and thus by the OFT and NOT the FSA. The FCA will take over the regulation from 2014. So they have no fear of the FSA. Look at the FSA register and give me one authorised payda lender. There is none as they are not regulated by the FSA. You can serach here:http://www.fsa.gov.uk/register/firmSearchForm.do

On the direct debits, that is untrue, there is no legal ranking / priority of direct debits. The only ranking is by date.

On the workplace, you again are incorrect. Point out the part of the data protection act which prevents a company from giving their name.

On the denial by you that a payday loan ill restrict your credit here is one of many banks which will not lend to people who have taken out a paydya loan:
http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/9395294/Payday-loans-could-cost-you-a-mortgage.html

I don't know why you are trying to defend an industry that is STILL riddled with chancers and charltans other than you must have a vested interest in supporting them. The industry always trots out the line "report wrong doings" knowing that most consumers who need payday loans are financially illiterate and don't know whom, how or what to report.

OK, first off I'll admit I had the OFT and FSA mixed up. My point was that these companies and regulated and open to hefty fines if they break regulations.

Secondly, who in their right mind needs a payday loan if you're applying for a mortage?

You stated

If you have more than one payday loan within a year, you will not get credit from other banks etc.

Payday loan companies for the most part do not register customer details with experian which is the reason some people can take multiple loans with several Payday loan companies unbeknownst to the lenders unless they request a financial statement. So you're back tracking now.

On the workplace part I am not incorrect, you stated in an earlier post that

They will phone up your work and home demanding payment at all sorts of unreasonable hours. If you want your work colleagues to know you have money problems, they will make sure that they find out.

Giving financial details to a third party is against data protection. Of course you can leave a company name but if your company name is "Paydayloan" and your divulge details, BANG, data protection broken.

Last I am NOT defending these companies. In fact I don't agree to them operating at all above minor small amounts like 100 pounds. The fact I am trying to put across is despite your ill informed posts that the consumer is PROTECTED and can lodge a complaint which by law has to be responded to within a set period of time. These companies are terrified of those type of complaints and it is in the consumers interest to exercise the rights they have.

A lot of people in major financial trouble use payday loans to juggle their finances, nobody forces them to take them out and they get in a massive hole. You're not talking about someone on a decent salary that has saved for years for enough to apply for a mortgage. These are people who are in a financial crisis.

Retrovertigo · 15-05-2013 04:23PM

runawaybishop wrote: »

That's all the UK though, how is it relevant to Ireland?

The reality is that it isn't. I'm only aware of one payday loan company in Ireland and they don't operate by direct debit but use agents to call out to you to collect the money bit by bit. All this scaremongering is for a market in the UK that does not affect Ireland in any way.

ResearchWill · 15-05-2013 04:34PM

While Ireland does not have a Usary law the nearest thing is

http://www.irishstatutebook.ie/1995/en/act/pub/0024/sec0047.html#sec47

47.—(1) A consumer or a person acting on the consumer's behalf may apply to the Circuit Court in whose Circuit the consumer resides or in which the agreement was made, for a declaration that the total cost of credit provided for in any agreement is excessive.

(2) Subject to this section, the Circuit Court may decide in any particular case coming before it, by an application under subsection (1), that the total cost of credit provided for in any credit agreement is excessive.

(3) In making the decision referred to in subsection (2) the court shall have regard to all relevant factors including—

(a) interest rates prevailing at the time the agreement was made or, where applicable, interest rates prevailing at any time during the currency of the agreement,

(b) the age, business competence and level of literacy and numeracy of the consumer,

(c) the degree of risk involved for the creditor and the security provided,

(d) the creditor's costs including the cost of collecting repayments, and

(e) the extent of competition for the type of credit concerned.

(4) This section does not apply to any credit agreement relating to credit advanced by a credit institution or a mortgage lender.

(5) In any case where the application under subsection (1) is made by a consumer or a person acting on the consumer's behalf the Circuit Court shall not make an order without first affording the Director the opportunity to be heard on the matter.

Then if excessive section 48 says,

48.—(1) Where the Circuit Court has decided by virtue of section 47 , that the total cost of credit is excessive, it may re-open the credit agreement so as to do justice between the parties and may decide to do any one or more of the following:

(a) relieve the consumer from payment of any sum in excess of the sum adjudged by the court to be fairly due in respect of such total cost of credit;

(b) set aside, either wholly or in part the agreement against the consumer;

(c) revise or alter the terms of the agreement; or

(d) order the repayment to the consumer of the whole or part of any sums paid.

(2) Where an agreement to which subsection (1) relates is a moneylending agreement the court may also order the Director to revoke, suspend or alter the moneylending licence of the holder concerned either immediately or as from such date as the court may decide.

I do not think the UK has any like provision. I could only guess that any APR in the 1000 or 2000% would be difficult to justify.

The big issue I have seen with and short term expensive loans is that as soon as one is paid a second is taken out driving the person into a spiral of debt which is mostly interest.

syklops · 16-05-2013 12:10PM

Former bankrupt Kerry Katona is back in a new payday loan TV advert four days after the original was banned

Kwiecien · 16-05-2013 12:33PM

syklops wrote: »

Former bankrupt Kerry Katona is back in a new payday loan TV advert four days after the original was banned

Ah yes, wasnt she bankrupt a few years ago.

Stay away! Dont do it op. She has no cash and she aint no lady either!:mad:

runawaybishop · 16-05-2013 12:38PM

syklops wrote: »

Former bankrupt Kerry Katona is back in a new payday loan TV advert four days after the original was banned

She's as financially responsible as the company she's representing

Payday loans!

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