General / Off-Topic [RANT] Payday lenders - time to look at the industry properly?

Andy Kappa

Andy Kappa
These days I lead a relatively calm and untroubled life. However this industry does seem to get me exercised. I find their whole business model thoroughly offensive.

It's about time this happened. With any luck the entire industry is about to get a properly thorough and vigorous investigation. I'm not holding my breath but live in hope.

Everybody's entitled to their point of view - this is mine and I'm prepared to defend it.
 

Dusty

Dusty
Andy Kappa said:
These days I lead a relatively calm and untroubled life. However this industry does seem to get me exercised. I find their whole business model thoroughly offensive.

It's about time this happened. With any luck the entire industry is about to get a properly thorough and vigorous investigation. I'm not holding my breath but live in hope.

Everybody's entitled to their point of view - this is mine and I'm prepared to defend it.
Click to expand...

I agree and I never had to deal with these lenders, those who have have told me they are nothing more than crooks :mad: Mafia loan sharks are more honest than those guys :eek: but alas its a bit late now because this should of been dealt with back during the 2008 financial crisis :mad: but better late than never I suppose and like yourself I hope it expands industry wide :)
 

Surfinjo

Surfinjo
It is but it seems unlikely.

The entire loan industry is so rampant with questionable practices, including some of the most preposterous interest rates imaginable, the real question is, why it has been allowed to develop at all?

For the answer to that, we need only look at the numbers stupid enough to borrow money at 4000% +.

We have TV with 5 minute advertising breaks, yet people still watch it. Bread that turns to slime in your mouth yet people still buy it. Petrol at £5.90 a gal yet people still drive big cars. (Or drive at all!)

Then again, there are people like me who don't do any of those things and are basically high and mighty about it.

C'est La vie :(
 

Bazil

B
I haven't seen anywhere in the news whether this will affect the credit ratings of those having their debt wiped.

Will this spawn a new wave of claims companies trying to get debt written off?
 

beelbeebub

beelbeebub
Sadly, pay day lenders will be with us for a while.

I did a cigarette packet calc a while back and there are some circumstances where it is cheaper to take out a Wonga loan than to drift into over draft by £20 for a day and get charged interest 20% per month (calculated daily) plus a £25 penalty plus £12 for writing a letter telling you of the penalty.

Of course this is not to excuse them, just to highlight how poor the "normal" loan system is for little blips over the limit.

Of course what we need to be doing is getting away from the idea of using debt for anything but the most structured of purposes.

I was horrified to hear of people using Wonga to finance a fancy meal or night down the pub.....
 

Hamerstein

Hamerstein
Andy Kappa said:
These days I lead a relatively calm and untroubled life. However this industry does seem to get me exercised. I find their whole business model thoroughly offensive.

It's about time this happened. With any luck the entire industry is about to get a properly thorough and vigorous investigation. I'm not holding my breath but live in hope.

Everybody's entitled to their point of view - this is mine and I'm prepared to defend it.
Click to expand...

It doesn't annoy me per-se, but there is no way I'd advocate them either, they're legalised loan-sharks.

It doesn't surprise me that they exist though, we have a relatively open system of free-enterprise in the UK. There are many people who through bad luck or mis-management find themselves in a position where Banks refuse them overdraughts and loans, credit card companies wont touch them, and they're still flakey when it comes to managing their money.

Perfect targets for pay-day loan schemes.

We could make the same argument for the tobacco industry, profiting from a captive market, offering a product that is to the detriment of their consumers., one which further spirals them into dependency.
 
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