📰 Payday / high interest loans

It seems Wonga’s days may be numbered.

The legalised loan shark looks about ready to be fed to the fishes- in my mind they (& other similar) outfits shouldn’t have been allowed in the first place, but that’s our capitalist system eh?

3 Likes

They are all utter evil cunts… although what narks me even more, is that despite them being ‘allowed’ and ‘regulated’, the poor who take them out then never have a chance of a decent credit rating… which would give them access to much better finance when needed… although as my great great grandpa Macawber used to say, ’ Annual income Twenty Pounds, annual expenditure nineteen pounds, nineteen shillings and six pence result happiness. Annual income went pounds , annual expenditure twenty pounds ought and six, result Wonga loan, criminal interest and a fucked up create rating.

Macawber’s washing machine never broke down obviously or he never had his ye olde benefits stopped, delayed or rescheduled.

The Payday Loan companies, by their nature (generating a profit for shareholders at the expense of people who shouldn’t be exploited) are evil but they meet a very real need in our society.

Whilst food banks can keep people eating there aren’t enough similar community lending schemes to meet the need for non-foodstuffs.

Fucking sad but there will always be the need from the desperate and they’ll continue to shout “exploit me!”.

True, but that is in some respects a separate issue for them being utter cunts… the fact that there is a need for food banks and ‘emergency cash’ is to the country’s eternal shame, not just those exploiting the situation… but all who continue to find it acceptable.

3 Likes

Point being that trying to live within your means doesn’t always work due to situations beyond your control.

It’s still valid advice, just difficult to always do.

1 Like

I agree, but whilst I detest these payday loan companies, its a classic distraction technique by Government to deflect the shame… if we had a decent welfare system that was fair and provided a ‘real’ living package, they would not be needed…

My point was not to come across all Tory bastard… can see it might have done.

2 Likes

Simply the word “PAYDAY LOAN” should make every politician red faced, even with Government top ups and subsidy people still aren’t being paid enough to last a month.

5 Likes

This is a tricky one to solve - there will always be those who will need to borrow like this.

On one hand we have the payday loans companies, on the other we have criminal loan sharks. One or the other will always exists.

The interest rates are absolutely crazy, but a damn sight lower than they were. But we are talking about very high risk lending, so the rate is always going to be high - I guess the question is how high is acceptable.

If there is a way to square this circle, then I think it would be better to have a legitimate regulated company lending the money as opposed to some local villain.

There’s credit unions that can help people with loans. Maybe these need to be encouraged more.

Yep, I just had a look at the local one re loans

  • Loans up to £1500
  • Interest rate 42.6% APR
  • Reasonable credit history – No CCJ’s, maximum/maybe one or two missed payments in the past.
  • In regular employment (not self employed)
  • Outstanding balance of <£200
  • Can easily meet repayments
  • Member of the credit union

The issue here is they are looking for medium risk people, not high risk - 42.6% is still bloody high.

43% APR is too high but unfortunatley Credit Unions do need to cover costs and bad debts - just like a bank.

Plus APR only becomes a problem over time. If these are short-term loans APR is misleading (albeit a recognised means to compare lenders).