pay day loan companies - whats your opinion?
- Thread starter david-avfc
- Start date
BodyButter
Vital Football Legend
The amount of gambling advertising always surprises me when I'm watching the Villa on completely legal internet streams.
mike_field
Vital Football Legend
The problem is the system.
Creditors only make money by people not being able to pay back on time. So the whole system is geared towards you struggling regardless of how savvy you are at budgetting and understanding the small print.
Debits come out of your bank accounts before credits go in, so there is always a lag over period where you could be over your limit even though in reality you are well in credit. There was talk of changing this but I don't think anything has happened to it yet.
It's why people with cards who pay them off each month had their accounts closed, or had a standard rate introduced.
Good payers do not make lenders money.
And back specifically to payday lenders, at least in store you are talking to somebody you mostly do a demands and needs or some kind of assessment and people who lie are obviously in a different bracket from those who are coerced into it despite maybe having their own worries...that's why sales are on commission.
With an online interface you can't have any of that so that instantly should be regarded as potential unfair lending as there is no safeguard, no chance for a breather. If you are struggling, you are told you are instantly approved you don't think a month down the line you think of the food on your table now.
And people seem to be missing the point. PAYDAY lenders, they attract folk the banks won't help but hit an emergency point, and need the cash now for whatever reason. They are already working most likely all the hours they can, they are already most likely woefully underpaid.
But peeps focus on the APR and the idiot stories rather than the thousands of genuine folk out there who get slammed by them, usually through no fault of their own.
The banks have created the very profitable system they wanted and now apparently it's all our fault?
ps Daily Mail is my stock phrase for illeducated, hyper overblown, unfactual bollocks designed to spin lol And they, like many tabloids, are full of it both when they do hard luck stories and when they try and have an editorial on the nastys of banking.
It's never balanced.
In an ideal world debt would only be allowed for business expansion/growth/set up, education and home ownership/improvements.
Everything else should be banned, a tight regulation of hire purchase turning to ownership should be encouraged for those items that go bang that you can't save for like cookers, fridges etc and everything else should be save to buy.
Then educate properly at school to teach how to budget, especially for those kids with parents who can't set an example, and at least give them a chance.
Creditors only make money by people not being able to pay back on time. So the whole system is geared towards you struggling regardless of how savvy you are at budgetting and understanding the small print.
Debits come out of your bank accounts before credits go in, so there is always a lag over period where you could be over your limit even though in reality you are well in credit. There was talk of changing this but I don't think anything has happened to it yet.
It's why people with cards who pay them off each month had their accounts closed, or had a standard rate introduced.
Good payers do not make lenders money.
And back specifically to payday lenders, at least in store you are talking to somebody you mostly do a demands and needs or some kind of assessment and people who lie are obviously in a different bracket from those who are coerced into it despite maybe having their own worries...that's why sales are on commission.
With an online interface you can't have any of that so that instantly should be regarded as potential unfair lending as there is no safeguard, no chance for a breather. If you are struggling, you are told you are instantly approved you don't think a month down the line you think of the food on your table now.
And people seem to be missing the point. PAYDAY lenders, they attract folk the banks won't help but hit an emergency point, and need the cash now for whatever reason. They are already working most likely all the hours they can, they are already most likely woefully underpaid.
But peeps focus on the APR and the idiot stories rather than the thousands of genuine folk out there who get slammed by them, usually through no fault of their own.
The banks have created the very profitable system they wanted and now apparently it's all our fault?
ps Daily Mail is my stock phrase for illeducated, hyper overblown, unfactual bollocks designed to spin lol And they, like many tabloids, are full of it both when they do hard luck stories and when they try and have an editorial on the nastys of banking.
It's never balanced.
In an ideal world debt would only be allowed for business expansion/growth/set up, education and home ownership/improvements.
Everything else should be banned, a tight regulation of hire purchase turning to ownership should be encouraged for those items that go bang that you can't save for like cookers, fridges etc and everything else should be save to buy.
Then educate properly at school to teach how to budget, especially for those kids with parents who can't set an example, and at least give them a chance.
mike_field
Vital Football Legend
And councils mostly have social funds for those on benefits with very low APR and they go through things with you, and then there's co-operative systems and community groups for lending.
There should be no place for payday lenders because by it's very nature if somebody needs the cash that month because of an emergency, by the very nature of it they won't be able to repay in a month in general circumstances and that's why they encourage rollovers because you then get deeper and deeper in with them by just trying to stay afloat in the first place.
There should be no place for payday lenders because by it's very nature if somebody needs the cash that month because of an emergency, by the very nature of it they won't be able to repay in a month in general circumstances and that's why they encourage rollovers because you then get deeper and deeper in with them by just trying to stay afloat in the first place.
G
Guest
Guest
These companies just reflect the hard times we are in, there is and always was fellow people taking advantage of other people's hardship in life,just look at the bankers, they take our money and make money off it but we all suffer when they gamble it away or the cheaky buggers we call the government who take our tax payers money take a salary of silly amounts have extra property's paid for by us and then tell us all we have to pay more its all a scam if you ask me,
Villa_Grizzly
Vital Squad Member
I'd love us to be sponsored by Monster Munch.
mike_field
Vital Football Legend
You want to eat Benteke?
G
Guest
Guest
lol Ive always wanted ''ASTON MARTIN'' as the sponsor on the shirt and logo, wow that would be cool
david-avfc
Vital Football Hero
My original point which I probably didn't explain was that we should live in a liberal society with a free market (the alternative is communism) and people should make their own decisions in life, and I don't think companies should be forced to shut down by external stakeholders (unless they are illegal, in this case they are not illegal). Markets are self regulating so as these companies are still around it can be assumed there is a demand for their products- IMO it's not their fault they are tapping into that demand.
As for the unethical debt collection methods I don't care as long as its legal because its their right to reclaim money owned by a debtor in the given time frame, and I expect they make the assumption that alot of customers won't pay if they aren't forced. Anything that's illegal from the lenders will be taken to court so there's no point commenting on that
If something needs to be done, children and teenagers should be educated properly on finances, debt and credit properly so they can make informed and educated decisions in life. The problem is the society and attitude towards debt not the debt companies themselves, as long as there is a demand for credit there will be a supply of lenders, whether its banks, loan sharks, payday companies or pawn brokers or whatever.
As for the unethical debt collection methods I don't care as long as its legal because its their right to reclaim money owned by a debtor in the given time frame, and I expect they make the assumption that alot of customers won't pay if they aren't forced. Anything that's illegal from the lenders will be taken to court so there's no point commenting on that
If something needs to be done, children and teenagers should be educated properly on finances, debt and credit properly so they can make informed and educated decisions in life. The problem is the society and attitude towards debt not the debt companies themselves, as long as there is a demand for credit there will be a supply of lenders, whether its banks, loan sharks, payday companies or pawn brokers or whatever.
V
Villan Of The North
Guest
I tend to agree with David with the caveat that there should be strict regulation on all forms of commercial lending and how those debts may or may no be sold. This doesn't make things more or less morally wrong as surely it is also morally wrong to take on a debt either with no intention of repaying it or knowing that you won't be able to afford the repayments.
One thing I disagree with though is that it's just the young that are falling into this trap, unless by young you mean everyone under 50.
The fact is, we now live in a society of instant gratification, people are told by mainstream media and advertising that they can have everything now, without working and or saving for it: If you don't get what you want you are somehow less worthy, your house isn't as nice as the neighbours, so you're poor or your car is too old or you are not going on an expensive 3 week summer holiday, rather you are taking a week in a caravan in Wales so you're just not cool and are missing out.
Yes, education is the key but not education on financial management but education for the whole of society under a certain age on priorities and social pressure. The only way to do this is through main stream media and the money lenders pulling the purse strings tight but this will never happen unless regulation forces them too as they have too much invested in maintaining the status quo.
One thing I disagree with though is that it's just the young that are falling into this trap, unless by young you mean everyone under 50.
The fact is, we now live in a society of instant gratification, people are told by mainstream media and advertising that they can have everything now, without working and or saving for it: If you don't get what you want you are somehow less worthy, your house isn't as nice as the neighbours, so you're poor or your car is too old or you are not going on an expensive 3 week summer holiday, rather you are taking a week in a caravan in Wales so you're just not cool and are missing out.
Yes, education is the key but not education on financial management but education for the whole of society under a certain age on priorities and social pressure. The only way to do this is through main stream media and the money lenders pulling the purse strings tight but this will never happen unless regulation forces them too as they have too much invested in maintaining the status quo.
col8
Vital Football Legend
I wonder how much money Wonga-Payday Loans have made by lending someone £200 and passing it as their debt onto a debt collecting agency at £2000 (or what ever the limit is) and how much the agency has actually paid them for taking the £2000 debt?
Maybe they split it 50/50 and the debt collectors pay half up front.
Maybe they split it 50/50 and the debt collectors pay half up front.
Lost_In_Ca
Vital Squad Member
Had a girlfriend who used them (a little hole in the wall kind of place in Newport) - took 15% of her check. When i found out i fronted her the money minus 15%. i put her check in to my account. Once it cleared she would have to perform certain "acts" to get her 15% back- we both had a great time :)
badge73
Vital 1st Team Regular
sighs .....
im really getting fed up of loan companies getting bashed left right and centre.
do they force people to apply for them?
do they force people to tell porky pies on the application forms?
dont you think people apply for them knowing they cant afford the repayments then cry "poor me" when letters and ccjs come through the door?
a few years ago i used to have a few pints with a old bloke who used to be an enforcer for certain people around brum who used to lend money out and get it back with interest etc, chatting away about it and what he said was true (especially as it was before the "crash") getting credit is one of the most easiest things to do ..... but paying it back is one of the hardest.
im really getting fed up of loan companies getting bashed left right and centre.
do they force people to apply for them?
do they force people to tell porky pies on the application forms?
dont you think people apply for them knowing they cant afford the repayments then cry "poor me" when letters and ccjs come through the door?
a few years ago i used to have a few pints with a old bloke who used to be an enforcer for certain people around brum who used to lend money out and get it back with interest etc, chatting away about it and what he said was true (especially as it was before the "crash") getting credit is one of the most easiest things to do ..... but paying it back is one of the hardest.
kefkat
Vital Football Legend
I wouldn't touch them with a 10 foot barge pole, or the longest barge pole you can have. That simple. Unfortunately not everyone is savvy enough to realize what they are getting into and it doesn't help the vulnerable people.
My 2nd son took 1 out last year without us knowing, when his bi-polar was totally unstable, and not thinking properly. We found out but not before he had got into a mess with it. We paid it off for him. He had to sign an agreement to pay us back though which he is doing.
Wonga though did ask us if we wanted him blocked from future loans and I said yes. I explained the situation. He is blocked from using them. I think that Wonga are the only 1's that do do that from what I have read and know.
Yes people do have choices however sometimes people can get caught up in them when they usually wouldn't. Nothing full proof I know
My 2nd son took 1 out last year without us knowing, when his bi-polar was totally unstable, and not thinking properly. We found out but not before he had got into a mess with it. We paid it off for him. He had to sign an agreement to pay us back though which he is doing.
Wonga though did ask us if we wanted him blocked from future loans and I said yes. I explained the situation. He is blocked from using them. I think that Wonga are the only 1's that do do that from what I have read and know.
Yes people do have choices however sometimes people can get caught up in them when they usually wouldn't. Nothing full proof I know
thefacehead
Vital Football Hero
The interest is too high, that should be made illegal. It's loan sharking, simple as that. How anyone can say what they do is okay and the people doing it knew what they were getting themselves into is beyond me!
It prays on poor disadvantaged desperate people, who they know will have difficulty in repaying their extortionate interest rates and then send in unbelievably uncaring people with sadistic attitudes to hunt and gather back the money that doesn't even have to exist and demand they be paid!!!!
There is a place in the world for loan companies of course, but the overall debt should be capped and a time frame for repayment introduced so that people at least have a fighting chance of repaying their debts.
It prays on poor disadvantaged desperate people, who they know will have difficulty in repaying their extortionate interest rates and then send in unbelievably uncaring people with sadistic attitudes to hunt and gather back the money that doesn't even have to exist and demand they be paid!!!!
There is a place in the world for loan companies of course, but the overall debt should be capped and a time frame for repayment introduced so that people at least have a fighting chance of repaying their debts.
G
Guest
Guest
*****
