Low payday loans tactics:

[AAD News Feed]

Low payday loans tactics:

This is a duplicate of the Blog Entry made on 11th November 2012 11:58.

*scandal of ‘lost’ customers' cheques * Payday lenders regularly ‘lose’ cheques sent by customers to settle debts, forcing borrowers to pay even ...

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[gravytrain]

Re: Low payday loans tactics:

"One banker said: ‘The actions of payday loan firms call into question whether they are adequately considering the irresponsible lending guidelines or are simply focused on lending as much money as possible"

Yep

[vossy]

Re: Low payday loans tactics:

"One banker said: ‘The actions of payday loan firms call into question whether they are adequately considering the irresponsible lending guidelines or are simply focused on lending as much money as possible"

Yep

No! They wouldn't do that surely.........

[gravytrain]

Re: Low payday loans tactics:

This is from Stella Creassy website

Sharkstoppers: Ask the Lords to have mercy and vote to end legal loan sharking in Britain!

Ask the Lords to have mercy and vote to end legal loan sharking in Britain!

Next week the national press will reveal just how many people's lives are now being ruined by legal loan sharks in Britain. I'm asking you for help to change this by emailing Lords and Baronnesses to vote for powers to cap their charges this month.

At the end of November, the House of Lords will vote on a amendment tabled by Lord Mitchell to Clause 28 of the Financial Services Bill that will allow the new regulator to cap what these firms can charge. It's a chance to limit the damage high cost credit companies can do by giving British consumers the same protection that others all over the world enjoy.

New research shows 60% of those using payday loans are using the money to pay for household bills and buy essentials like food, nappies and petrol. With over 50% admitting that they took out these loans despite knowing they could not afford to pay back, capping what these companies can charge could make a real difference to millions across the country borrowing just to make ends meet, and now facing the costs of Christmas.

Please contact members of the House of Lords to ask them to support this amendment. You can find a suggested email text to use and details of their email addresses here

Members of the House of Lords - UK Parliament


There are 812 members of the Lords and we want to ensure they all know how strongly Britain wants this change – we have less than three weeks to ask them to take this chance to end legal loan sharking in the UK!


Stella Creasy
Labour and Co-operative MP for Walthamstow

p.s. Please feel free to share this email with your family and friends who will also help us contact all the Lords and Baronnesses to ask for their help!

p.p.s. If you have been personally affected by using legal loan sharks and would like information on how to negotiate with them or would be willing to speak out about your experience please do get in touch!

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Text to use to write to members of the House of Lords


“Lord/Baroness XXXX,

House of Lords,

London,

SW1A 0PW

Dear Lord/ Baronness XXXX,

I’m writing to ask you to vote for the pay day loan amendment tabled by Lord Mitchell to Clause 28 of the Financial Services Bill designed to help tackle legal loan sharking when it comes before you at the end of November 2012.

Whilst every other industry has suffered from the recession, legal loan sharks are making huge profits off the back of lending to people at excessive rates of interest – some of up to and over 16,000%. Fines alone will do little to change the way they operate – one firm this year made £45m in pure profit and its main director took home a salary of £1.6m.

Giving the new regulator explicit powers to cap the charges that these companies can set would send a strong message to this industry about the costs for loans that should be considered acceptable. British consumers deserve the same protection from these companies that others around the world enjoy. Research shows 60% of those using payday loans were using the money to pay for household bills and buying essentials like food, nappies and petrol. By restricting what firms can charge, we could make a real difference to millions of families across the country right now who are struggling financially and are borrowing from these companies just to make ends meet.

A poll by ComRes for R3, the insolvency practitioners, shows overwhelming public support for action on this issue with 93% agreeing there is a problem with payday lending and 65% supporting a cap on the total cost of credit. Ministers claim they support the spirit of the amendment but refuse to back it – legal advisors are clear that without explicit powers to act, these companies will be able to challenge any regulatory action in the courts.


Please don’t let the fight against legal loan sharking become a fee generating opportunity for lawyers – please vote for this amendment and help end legal loan sharking in Britain.

Yours Sincerely,”


Working for Walthamstow |

Stella Creasy: Labour and Co-operative MP for Walthamstow


Reply to:

Reply to stella@workingforwalthamstow.org.uk

[SaltnVinegar]

Re: Low payday loans tactics:

Low payday loans tactics:

This is a duplicate of the Blog Entry made on 11th November 2012 11:58.

*scandal of ‘lost’ customers' cheques * Payday lenders regularly ‘lose’ cheques sent by customers to settle debts, forcing borrowers to pay even ...

Click to Read More...

This, I'm afraid to say, is nothing new.

I had both Wonga and Quickquid 'lose' payments which I had sent to them.

If I hadn't sent them via recorded delivery, and made payments via PO, and had recorded the PO numbers so could prove they had been cashed, I would have struggled to prove they had ever received them.

Its not just the PDL industry where this is rife.

I had payments sent to Lowells and AIC 'lost' too, both of whom denied all knowledge of ever receiving payments (while sending threats for 'breaking my payment arrangements). Again payments sent by recorded delivery so I could prove otherwise.

[The Tech Clerk]

Re: Low payday loans tactics:

O.K. Who are the Big Guys behind these Payday Companies??? let us know!

[gravytrain]

Re: Low payday loans tactics:

Most originate from over the pond.
Pay day loans a such i believe started life as a commercial exercise in Canada, and then spread like the plague to all parts of America.

Canada Banned pay day loan companies from targeting there ex servicemen first of all, and then virtually all of the american states either banned them completely or capped the total charge for credit/number of rollovers. Different states have different legislation.

Many states subscribe to a central database that stops people from making multiple applications.

Venture capital was raised from a variety of sources for the development of the "service " over here, it was an opportunity to good to miss, a country on the breach of a recession with no effective regulation.

In answer to your question as regards Wonga have a read here;

http://www.google.co.uk/url?sa=t&rct...u-iYFIHPkPGXhQ