looks like the aussies are becoming the next 'victims'! from that article;

'...According to Cash Converters, the online payday industry is growing at a rapid pace. The value of its online cash advance loan book jumped 62 per cent in the six months to December to $8.2 million. Its online personal loan book also grew to $44.6 million, up 42 per cent. Payday lender Money3 has also reported a jump in online lending, telling investors to expect "impressive returns". ...'

some recent news

'The payday lender Wonga is taking a dose of its own medicine by adding nearly £25m of debt to its balance sheet as it tries to accelerate the turnaround of its business...The new capital will be used to fund new loans and provide additional working capital, sources said on Friday....'

http://news.sky.com/story/1675278/wonga-borrows-25m-to-fund-urgent-revival

'Wonga borrows 25m..(wonder what the APR is on that'?) says bitterwallet.com

'Google has announced plans to ban ads from so-called payday lenders, in a move the company hopes will limit what it calls a "harmful" industry. The search giant plans to stop allowing ads for loans due within 60 days or with an interest rate of 36% or higher. Google's director of product policy David Graff said: "Our hope is that fewer people will be exposed to misleading or harmful products." Many payday lenders rely on internet searches to generate customers. The Online Lenders Association called Google's move "disappointing".....it is possible Google's move could have more impact on curbing the industry than government regulation. The change takes effect on 13 July...'

http://www.bbc.co.uk/news/business-36272031

some further comment re

https://www.theguardian.com/technology/2016/may/12/google-payday-loan-advertisement-facebook-microsoft-policies

'Google has announced plans to ban ads from so-called payday lenders, in a move the company hopes will limit what it calls a "harmful" industry. The search giant plans to stop allowing ads for loans due within 60 days or with an interest rate of 36% or higher. Google's director of product policy David Graff said: "Our hope is that fewer people will be exposed to misleading or harmful products." Many payday lenders rely on internet searches to generate customers. The Online Lenders Association called Google's move "disappointing".....it is possible Google's move could have more impact on curbing the industry than government regulation. The change takes effect on 13 July...'

 

http://www.bbc.co.uk/news/business-36272031

Lets hope that it does have some impact.

Would be good to see tv ads stopped too. I saw one the other day advertising 1272% and quik quid are constantly on.

Wolves footy fans (with support from MP) recently set up a petition to (try) stop payday sponsorship on their clubs' kit/shirts.

The Slow Death of Payday Lending.

“It is possible Google’s move could have more impact on curbing the industry than government regulation,”

Despite the FCA’s action there are still numerous payday lenders operating in the UK, so curtailing their ability to advertise could seriously affect their business.

Always worth thinking about the Good old Credit Union where is a cap on how much interest they can charge: three per cent a month in England, Scotland and Wales, two per cent in Northern Ireland.

You can search for a suitable one at http://www.findyourcreditunion.co.uk/home

Back to the Payday Lenders.

Just to remind ourselves what these blood suckers do,my view i appreciate others have theirs.

The FCA may have imposed price caps but payday lending is still an incredibly expensive way to borrow. If you take out a loan for £250 from one of the lenders still operating for 30 days you’ll pay £60 in interest and fees. That’s an astronomical 1,250 per cent APR.

The Link where i found this info.

http://www.theweek.co.uk/72655/the-slow-death-of-payday-lending

Just popping over to America where this may interest some.

CFPB Drags Banks Into Battle Over Payday Lending.

CFPB is similar i feel to the FCA here

CFPB Drags Banks Into Battle Over Payday Lending

http://www.lexology.com/library/detail.aspx?g=e73f818a-1458-4db2-8bdb-66550e08b12d

Perhaps if you want to Google what Is the higher Apr for a loan you could find one at over 5000% I did look last year and was horrified...

did a quick google re 'payday loan'

on the first page, some rep aprs around 800%, 1300% re a 30 day loan

do google mean the fixed rate or rep apr. either way will exclude alot of these loan sharks.

can they get around it? maybe. but, if they are reg compliant they need to display/state an apr/rate, which wld then make the site subject to G's search engine?

Hi old Tawnyowl here.

Just popping over the Atlantic,for some news.

I watched in America as many people struggled with Payday Loans.And clearly were taken advantage of by the powerful ones and their chums.

In ways i cannot explain at this time of day.But will say more soon.Went to many States and watched but such a large place.Took a particular interest in Sioux Falls,South Dakota where much trickery was going on and i dare say is now.But i will check and see what is being said there.

Watched as the CFPB simiar to our FCA was set up and Richard Cordray became the man in charge to take the legal loan sharks on.

This was the day things started to happen.

On Wednesday, December 15, 2010, Special Advisor to President Barack Obama, Elizabeth Warren announced that she had selected Richard Cordray to lead the enforcement arm of the newly created United States Consumer Financial Protection Bureau (CFPB).

Began operations on July 21, 2011

Waited for the promise of rules to regulate them excitedly.So many States to control,wondered how this would be possible.

Watched all the tricks and other things that have happened over there .And wrote about them.

Finally,it happened,but is it enough.Well i have not read things through enough to say,but will.

But for now i will enjoy this moment.

A couple of links.With video and links leading off.

We’ve proposed a rule to protect consumers from payday debt traps

New data shows payday and similar loans lead to consumers trapped in debt and our proposed rule aims to help those consumers.

CFPB

http://www.consumerfinance.gov/about-us/blog/weve-proposed-rule-protect-consumers-payday-debt-traps/?utm_source=twitter&utm_medium=social&utm_term=06022016_z1&utm_campaign=payday_rule2016

But already some are not happy,oh dear.Get lost,sorry should not say that,got to be diplomatic.

Trade group threatens to sue CFPB over payday loan rules

http://thehill.com/regulation/pending-regs/281994-trade-group-threatens-to-sue-cfpb-over-payday-loan-rules

Finally it has happened,is it enough,well i will take things in over the next few days and see.

Also going to take a look at Australia,Canada,South Africa,and of course Great Britain.

5 years on this thread,i am feeling revitalised tonight,i mean this morning it is 1 am,time to roost.

Bye for now

Tawnyowl.

I noticed that different states have different rules/regulations regarding PDLs, TO ?

'The number of complaints about payday loan companies soared by 178% in the year to March, the Financial Ombudsman has revealed. That is despite the fact that new controls on lenders were brought in by the regulator several months earlier. There were 3,216 complaints about short-term loans in 2015/16, compared to 1,157 the year before. However Payment Protection Insurance (PPI) remained the most complained-about financial product....'

http://www.bbc.co.uk/news/business-36377168

also, http://www.thisismoney.co.uk/money/news/article-3610327/Payday-loan-complaints-triple-year-despite-crackdown-unscrupulous-lending.html

re the above re complaints, a q posed by one site;

'Are consumer awareness sites fueling unfair complaints against payday lenders?....'

https://www.finextra.com/blogposting/12752/are-consumer-awareness-sites-fueling-unfair-complaints-against-payday-lenders

and, across the pond, there is now federal proposed regulation re paydayers.

https://www.theguardian.com/money/2016/jun/02/payday-loan-industry-cfpb-rules-borrower-debt

I agree that borrowers should take responsibility for their own borrowing decisions - however these loans are so in your face that a high proportion of people with no where else to go will see this as the route to take.

The lenders themselves should take every step to ensure that the borrowers can repay and should not whinge when they dont do the research and are found to have loaned to someone who will not be able to.

PDLs feed off the fact that these borrowers do have very limited options.

I see absolutely no wrong doing in Consumer sites making people aware that they have been well and truly shafted.

overdrafts can be 'four times' more expensive than some payday loans.

Which calls for a 'cap'; '...The Which? spokeswoman said it was calling for unauthorised overdraft fees to be set at the same level as authorised overdraft charges, and for the FCA to review overdraft charges in the context of other forms of credit...'

https://www.theguardian.com/money/2016/jul/09/unplanned-overdraft-fees-four-times-costlier-than-payday-loans

overdrafts can be 'four times' more expensive than some payday loans.

Which calls for a 'cap'; '...The Which? spokeswoman said it was calling for unauthorised overdraft fees to be set at the same level as authorised overdraft charges, and for the FCA to review overdraft charges in the context of other forms of credit...'

https://www.theguardian.com/money/2016/jul/09/unplanned-overdraft-fees-four-times-costlier-than-payday-loans

Keep up Ford

http://www.consumeractiongroup.co.uk/forum/showthread.php?466826-High-street-banks-charging-you-four-times-as-much-as-payday-lenders

only a couple of days.

more exposure, the better.

only a couple of days.

more exposure, the better.

'A payday lender and its owner have been banned after the Financial Conduct Authority (FCA) discovered “reckless” practices across the business. The regulator has published two prohibition notices issued to Andrew Barry Hart, director of Wage Payment and Payday Loans Limited (WPPL), and to WPPL itself....'

http://www.consumeractiongroup.co.uk/forum/showthread.php?467169-FCA-bans-payday-lender-and-director-for-%93lacking-integrity%94

It has been suggested by the FCA that the loan agreements are non compliant... More to follow

fca info re Hart & WPPL

http://www.fca.org.uk/news/fca-decides-to-cancel-payday-lenders-interim-permission-ban-its-sole-director

As Mentioned

Non-compliant loan agreements

 

4.60 - Mr Hart also failed to take reasonable steps during the relevant period to ensure

that the loan agreements that WPPL entered into with customers complied with

applicable regulatory requirements.

 

In particular, the form of agreement used by

WPPL misstated key terms such as the rate of interest charged and the term of

the loan.

 

For example, the interest rate was variously described as 30% or

300%. The Consumer Credit (Agreements) Regulations 2010 (made pursuant to

CCA section 60) require such information to be provided in loan agreements.

 

Any agreement containing such errors is unclear and potentially misleading. Further,

any agreement that misstates these key terms fails to comply with the statutory

requirements relating to loan agreements, is improperly executed and,

consequently, is not enforceable without a court order (pursuant to CCA section

65).

 

The information contained in the form of loan agreement used by WPPL was

also presented in an unclear and confusing manner.

 

For example, the loan agreement appeared to set out a number of incomplete examples for the

calculation of the APR, but did not clearly explain how the APR was calculated in

relation to the loan in question.

From the fca link re its 'Sanction';

'In practice, this means that WPPL will not legally be able to collect any debts due to it under regulated

credit agreements or otherwise deal with its loan book.'