Payday lending: Quick Quid owner agrees to refund £1.7m

A payday loan company has agreed to refund thousands of customers who took out loans they could not afford.

Up to 4,000 customers of loan sites Quick Quid and Pounds to Pocket will be refunded an average of £425 each.

The parent company, CashEuroNet, will pay out a total of £1.7m, according to the Financial Conduct Authority (FCA).

Following an investigation, it was found that some customers were lent sums that they could not afford to repay.

http://www.bbc.co.uk/news/business-34720106

Another 4,000 payday loan customers set for a payout as Quick Quid and Pounds to Pocket hand back £1.7million to borrowers

2,523 will have loans written off altogether

Customers will be contacted directly if they are owed a payout

http://www.thisismoney.co.uk/money/cardsloans/article-3303366/4-000-Quick-Quid-Pounds-Pocket-customers-set-payout.html

FCA announcement

.Almost 4,000 customers due redress totalling £1.7 million from payday firm CashEuroNet, says FCA

http://fca.org.uk/news/almost-4000-customers-due-redress-totalling-1-7-million-from-payday-firm-casheuronet

A link that may help you try to claim back charges and fees from any Payday Lender.

Go back years if you feel the quest is just,which it clearly is.

Nothing to lose,maybe a lot to gain,and it is not hard to do.

Even a letter template to help you.

The link.

Payday Loan Compensation-Can you claim-well you should try.

http://www.consumeractiongroup.co.uk/forum/showthread.php?454437-Payday-Loan-Compensation-Can-you-claim-well-you-should-try.

Today i am linking up and talking about a few countries.

So this is going to be a long post.There are 34 pages now about the problems in Britain and America and a few other countries mentioned at times.I am now spreading out a touch.

Just hopping over to America where for those of us who follow what is happening there you can feel pressure building against the Legal Loan Sharks.

Shortly for those of us who are optimistic about things the bubble might soon burst.

If it does it will be interesting to follow as the lenders head for the hills with the posse not far behind.

Seeking recompense for the misery and traps they have set for many years.

Much is happening there.Much trickery going on.Powerful organisations and prominent people who have interests in the sharks putting up resistance to changes.

Just like predators they do not want to lose their grip on their targeted exploitation of the poorest in society.

People who when showing resistance to the lenders come up against many things ,intimidation even paid thugs to rip up placards and disrupt petitions.And protests.

One woman got spat at and swore at by paid thugs when protesting against the lenders.Who paid them,well you perhaps do not need to look far.

One of the many things that are happening to protesters across America,i have read many stories over the last four years.

As the Rev. Susan McCann stood outside a public library in Springfield, Mo., last year, she did her best to persuade passers-by to sign an initiative to ban high-cost payday loans. But it was difficult to keep her composure, she remembers. A man was shouting in her face.

He and several others had been paid to try to prevent people from signing. "Every time I tried to speak to somebody," she recalls, "they would scream, ‘Liar! Liar! Liar! Don't listen to her!'"

Such confrontations, repeated across the state, exposed something that rarely comes into view so vividly: the high-cost lending industry's ferocious effort to stay legal and stay in business.

So the CFPB similar to our FCA is taking Northwood who have been operating there illegally in many states because of caps in some States to court.

For those of you here you will know them as Pounds to Payday.

Who are operating here without a Consumer Credit Licence.So no right to trade here.Or mess with Credit Reports etc.

Usual excuse they use as in America ,well we are operating under some European Objective.From Malta.

Same said in America but they have had enough there and are surely going to throw them out.Very shortly.

The Link

http://consumerist.com/2015/08/04/re...-loan-network/

A spiders web comes to mind.All the web joined up to the centre where the predator lurks looking for prey.

Who is the prey.

You your friends,your relatives your communities.

Money is collected and jetted off out of town never to be seen again.

Another article from America that may help you understand how the Predators are fighting to keep their Talons on their prey by many means.

Tainted study reveals desperate attempt by payday loan industry to shape debate

Fight is brewing over expected rules to rein in payday lending

Documents show industry interference in academic study

Industry rep contributed entire paragraphs

http://www.kansascity.com/opinion/editorials/article43520697.html

I have watched how The Lepers of Lending have prowled the Streets here and Sidewalks of America for quite a while now and feel the time is right for the people to seek recompense in many ways.

This has gone on far to long now.

Read hundreds of stories from across America that would bring tears to your eyes.

Time for justice to be dealt out.

Way back in 2011.How many now.

America-5,000,000 consumers each year are caught in a 'cycle of debt', where they become dependent on repeat borrowing at high cost in order to meet their basic living expenses.

I do apologise i have once again got rather roused for early on a Sunday morning.

I do not know what comes over me sometimes.

Must be something in the air,or something i have eaten perhaps.

Or is it i am sick of seeing the people targeted by Predators in many ways.

Over many years.

First the Subprime slaughtering many in America and Britain with their Mortgage schemes.

Now the Subprime small loans fiasco that has ripped the money from communities far and wide.

No wonder many are living in Tent Cities across many lands.

Some will not be satisfied till we are all living in a tent somewhere.

Nothing left for them to prey on.

If you offer a man or woman who has next to nothing a loan without checking enough what do you expect them to say.

I think it is time to put a few of the sayings i have read and written on again.

From America and Britain.

First one-

The businesses continue not only to exploit the urban poor but also to socio-economically subjugate them by trapping many into a virtually ceaseless debt cycle. In the end, a blanket proscription of these businesses might be the only way to drive them from the center-city and prevent them from perpetuating poverty.

I must give credit for the above statement to-

David Ray Papke

Professor Of Law

Marquette University - Law School

Milwaukee,

United States

2nd one-

A Consumer Attorney who dislikes predatory lenders.Fights them in courts.And sings about them.It does not get much better than that.

Erich Vieth

For my day job, I am a consumer attorney .I have prosecuted cases as class actions against predatory lenders and other unscrupulous businesses.

I formerly served (1986-1990) as an Assistant Attorney General for the State of Missouri.

His view of things.

Some practices so fundamentally affront our shared values that they should quite simply be prohibited. It is one thing to exploit the urban poor, but it is another thing to systematically worsen their socio-economic condition and to thereby subject them to greater control and subservience. Exploitation, in other words, might be tolerable in our market economy, but subjugation should not be. You can take people’s money and the value of their labor, but you not should be able to yoke them permanently or even semi-permanently to subordination. By actively making the urban poor even poorer, the rent-to-own, payday lending, and title pawn businesses do just that and should be banned.

Now not does he only battle with them he sings about them as well.

I best put his song on again

3-Payday lenders.-The newest form of loansharks.

The product forms a trap,clever because it does not ensnare every consumer and because the result is achieved without fraud or violence.If we judge matters by the public outcry payday lending is the shrewdest form of loan sharking yet devised.

This i altered when the government kept blocking votes,filibustering.It was written by someone in America.

But felt many powerful people were influencing the government at the time.

-4-- In Broken Britain we have a noble group of clergy doing the Lord's work, trying to protect people from modern-day money changers. Yet the political party that supposedly espouses Christian values is not on the side of the righteous, but on the side of greedy payday lenders. Christianity and the exploitation of the poor are irreconcilable concepts. You can't claim to be the former and also allow the latter to happen.

David Cameron 'supports' Tory minister who leaked report to Wonga

http://www.westerndailypress.co.uk/David-Cameron-supports-Tory-minister-leaked/story-28034606-detail/story.html

Interesting comment from someone in America.

But the final explanation is that some politicians have acquired the automatic habit of prostrating themselves before those with vast sums of money. And this is one more of the many toxic byproducts of the growing inequality in wealth: a sense of community is increasingly destroyed, along with the moral values that hold it together. We are left with two opposing classes that inhabit two opposing worlds, and their clash is inevitable.

Now these sayings only one i wrote.

It was written when i read about a Detroit Minister who had been offered a amount of money to use his mission for the day and every sub prime mortgage given out that day he would receive a sum of money for.

Now this was the poorest area where really every loan taken out was only going to end one way.

5- Way back in August 2013-Well i cannot compete with their sayings but felt passionate and angry at the time.

Right think of a man and woman struggling in a desert,half a mile away is a oasis.A stranger offers them a drink.Gratefully they accept it not knowing that the water was contaminated and would make them ill.Many of us were like that couple struggling but probably would have reached that oasis without that strangers contaminated product.They targeted us at our weakest and offered us contamination.I look around the world and see many people who were in that desert.Struggling but may have reached that oasis unaided.But the stranger has vanished now we want to return the favour

As some of the payday lenders are.

Why,would you give up a gold mine.

They have been mis-selling and other mis practices.

And are now scared of possible repercussions.

Make my day

Make them pay

Sooner rather than later.

How many years have we being rambling on about what the Post Office could do for many lower income families.

Whether for Bank or Credit Union use.

Turn post offices into banks, says Bernie Sanders

http://www.bendbulletin.com/nation/3642331-151/turn-post-offices-into-banks-says-bernie-sanders

Australia

Just popping over to Australia to see how they are .They do not mince words.

http://www.news.com.au/finance/money/theyre-no-different-to-drug-dealers-payday-lenders-thriving-despite-tougher-rules/story-fnagkbpv-1227243702014

‘They’re no different to drug dealers’: Payday lenders thriving despite tougher rules

The most vulnerable people in the community are being hurt by payday loans, arguing the industry needed to “stop expecting special treatment” compared to other forms of credit.

“Payday lenders are a credit product and should be regulated like larger loans,” he said. “They should operate under the 48 per cent interest rate cap, the requirement that applies to loans above $5,000.”

Who would think Australians would get rolled over like this.

I must take a closer look over there.

For a start take a look at this.Australian.If you feel you are only concerned about Britain just switch off.I understand fully.

Payday loan mountain to top $1 billion as irresponsible lending skyrockets

http://www.news.com.au/finance/money/payday-loan-mountain-to-top-1-billion-as-irresponsible-lending-skyrockets/story-fnagkbpv-1227571171453

Corporate watchdog ASIC is investigating a payday lender accused of lending to drug addicts, gamblers and people who are illiterate as well as changing the terms of loan contracts after they have been signed.

http://www.abc.net.au/news/2015-03-30/good2go-loans-investigated-by-asic/6357166

Canada.

Payday loan industry to face Alberta government review-With Video.

The provincial government says it will strengthen consumer protection for payday loan users amid concerns about interest rates charged by the industry.

"Protecting consumers is a priority of our government," said Service Alberta Minister Deron Bilous as he announced a public consultation and government review of the current rules, which are set to expire in June next year.

http://www.cbc.ca/news/canada/calgary/payday-loan-industry-review-1.3260221

Canada Needs A Seismic Shift In Financial Literacy

Canadians are a world leader at something terrible: household debt growth. According to a report released in February by the McKinsey Global Institute, Canada is second only to Greece in terms of growth of household debt, relative to income, since the Great Recession. Our debt-to-income soared to record heights in September to a debt-to-income ratio of 164.6 per cent. We owe $1.65 for every dollar we earn. Simply put, we're stretched incredibly thin.

http://www.huffingtonpost.ca/jeffrey-schwartz/financial-literacy_b_8437628.html

New survey shows more Canadians turning to payday loans-News Video.

http://www.theglobeandmail.com/life/life-video/video-consumer-alert-payday-loans-for-basic-bills/article26362157/

Drawing Conclusions: A look at what payday loans really cost-Video.

http://www.theglobeandmail.com/report-on-business/video/video-drawing-conclusions-a-look-at-what-payday-loans-really-cost/article24236904/

Now to South Africa-A touch of variety today.

Hope it interests a few out there.

Spike in ‘payday’ loans warrants investigation ‘South Africans are addicted to debt’ – DebtBusters.

Not unexpected after Wronga set up here a couple of years ago.Time goes so fast but watched it happen.

Thought to myself more prey.To be targeted.

Some may be asking why do banks not help.Open small loan departments in every town and city..To help.It can be done if they want to do such a thing.But do they.If not why not.

One had to for a short while,i will not say who or why they did it.But shows it can be done.

http://www.moneyweb.co.za/news/industry/spike-in-payday-loans-warrants-investigation/

Well a taster of the problems out there.Many millions people in many countries finding things tough.

Is something big building.It makes you think a few things.Kind of what is going to happen soon thoughts.

Well a storm is brewing i feel in more ways than one,i am now off down to the Shoreline for a while.

Hopefully will come back with more than just a Tale Of The Shoreline.

Enjoy your day wherever you may be.

Tawnyowl.

Were you caught in a Pay Day Loan Trap ? - You may be able to make a claim

Pay Day loans offered access to quick and easy cash on a short-term high-cost basis

Their main selling point, which was highly attractive, was they guaranteed money quickly making it ideal for emergency situations

Prior to 2nd January 2015, payday loan companies did not have to cap their interest rates with some charging as much as 7000% interest

payday lenders as do all other lenders, have a duty of care towards their customers meaning they must carry out effective checks to confirm that the loan they are offering is affordable

This means checking borrowers’ financial background and clearly explaining any fees or charges that will incur

Many payday loan companies were not effectively carrying out these checks meaning some of their customers were building up huge amounts of unmanageable debt

The Financial Conduct Authority (FCA) kept their promise to investigate Pay Day Lending. They have introduced new regulations in respect of Lending Criteria and have placed a Cap on the interest that PDLs are allowed to charge. They have also forced Lenders to look at the loans they have already provided and to make refunds where borrowers were treated unfairlyicon, provided loans and rollover loans when it was obvious the borrower was not in a position to repay.

The Companies were supposed to make contact with the borrower, whether they were still repaying - defaulted or had repaid their loans. It is suspected that not everyone will have been contacted. So, do you Qualify for a refund or compensation ?

You may be able to claim if...

Your payday lender did not make any fees or charges you would incur clear to you

You had to repeatedly roll-over a loan. This shows that you could not afford to take out the initial loan in the first place as you couldn’t make the payments

Did you have to borrow from another payday lender in order to pay off your initial loan

The loan was a large portion of your income meaning you couldn’t pay it in time as you would not have been able to buy food, pay your mortgage or bills etc

It has to be clear that your payday lender did not carry out the proper checks before lending - You could check with the Credit Reference Agencies - if the Company ran a check on your financial situation, there should be a search recorded

Much more information on the link.

And how to go about this.

Were you caught in a Pay Day Loan Trap ? - You may be able to make a claim

http://www.consumeractiongroup.co.uk/forum/showthread.php?455382-Were-you-caught-in-a-Pay-Day-Loan-Trap-You-may-be-able-to-make-a-claim&p=4818933#post4818933

It is time as it is in America,Canada,South Africa and Australia to seek redress.

Small changes to laws in America which may as we speak be getting closer and those predators that have targeted people will be heading for the hills.

With the people,the posse hot on their heels seeking redress.Individually,not as a class action of many.

A few additional thoughts.

The Banks do not seem that keen to help the poor people in society.

The people who really through bank charges,fees probably pay the most.

Opening small loan departments in every town and city would help millions of people.That seems to be clear.

The Credit Unions could probably not cope with millions of people wanting to join all at once and wanting smallish loans at fair interest rates.

Perhaps they could if linked to the Post Office network.A IT platform that could cope with this.

And everyone is so close to the Post Office.The postmaster and staff able to authorise small loans that would help and be spent locally.

Instant memberships available.

Then we get to the Churches.Their rooms,halls,spare space that could be utilised once or twice a week for Credit Union use

So everyone no matter how remote could fight back against the predators who will not go away,just change products.

They need feeding by targeting people in many ways.

It really is time to stop these predators in towns and cities.

Make it fair for all of us.

How can countries and governments let their citizens be targeted like this.

Many times i have been thinking about things and always comes down to the Post Office,the Credit Unions and the Church to fight this problem,given up on the banks, not just in the UK but many countries.

Only today i have been looking at Post Offices in many countries,some virtual and you can see how this could work if the effort is made.

And from a business point of view,always comes down to that i know.

Would increase footfall and business in Post Offices.

In Churches it could increase congregation,make communities closer as was in the past.

For Credit Unions it would increase membership and money flowing in to be lent out locally and spent locally.

And convince people to invest,for returns received.`

Simple, it seems does it not.

Only people it might hurt is the Banks.

OOPS.

Well personally the Banks mean nothing to me,while we are sorting everything out we might as well have a Bank Transfer Day.

https://en.wikipedia.org/wiki/Bank_Transfer_Day

Liven the Credit Unions up and let the Banks know that the people have had enough of them profiteering off the poorest in society.

They do not want to help,that is clear.

Well today i am struck down with Man Flu so have talked enough for now.Enjoy your day wherever you are out there in the world.

Bye for now.

Tawnyowl.

http://www.out-law.com/en/articles/2015/november/fca-focusing-on-affordability-as-part-of-payday-loan-regulation-says-expert/

 

In a statement, the FCA said that CashEuroNet had "reassessed" all the loans it had granted since 1 April 2014, when the new regulatory regime came into force. An independent 'skilled person' appointed by the regulator had been working with the firm since September 2014 as part of this work, it said. The firm has now made changes to its lending criteria, and will write to the 3,940 customers who were loaned more than they could afford to repay, the FCA said.

 

Almost 500 customers that were the most seriously affected by CashEuroNet's previous practices will have their current loan balances written off and be paid a cash refund to cover interest paid on the unaffordable element of the loan, according to the announcement. A further 2,523 customers will have their current loan balances written off and 961 will receive a refund of interest only, the FCA said.

 

So this Company is reassessing all loans taken out since April 2014.

https://www.citizensadvice.org.uk/about-us/how-citizens-advice-works/media/press-releases/quarter-of-payday-loan-customers-could-have-borrowed-from-banks-says-citizens-advice/

And according to the article above by Citizen's Advice - at least a quarter of those who took out Pay Day Loans could have borrowed from their Banks ?

Interesting comment, when nearly all of those who have posted on CAG have said they didn't stand a hope in hell of doing that.

It is very good to hear that they have seen a 53% drop in PDL complaints. However, is this due to the fact that regulations are kicking in or that people are finding it very hard to get an appointment with CAB to register their complaint ?

http://paydayloans.money.co.uk/ripped-off-by-a-rogue-payday-loan-lender-fight-back.htm

http://paydayloans.money.co.uk/ripped-off-by-a-rogue-payday-loan-lender-fight-back.htm

Just hearing reports of the CFPB similar to our FCA coming under pressure from powerful ones who do not like what they are doing.

What are they doing you may wonder.A senator Elizabeth Warren came under attack by a commercial as did the CFPB director and staff.

“Wall Street has a problem,” she said. “They know the CFPB is working, & it's incredibly popular with the families it helps.”

She said the CFPB had forced the big financial companies to return billions of dollars to people “they cheated” on credit cards and mortgages.

Some say London is the City of corruption.

Not the people who are multi talented,free thinkers,entrepreneurs.

Referring i think to the square mile of finance.We know where that is.

Are they or will they begin to try to put pressure by many means as things are unveiled.

So the FCA better prepare themselves for perhaps some opposition.

As they are fighting for fairness as well.

Some powerful ones are none to keen on people and communities fighting back for justice.

How powerful,well only they know that.We just have the consequences of their actions.

Stuff of nightmares.

Some do not like fairness for families etc,and redress given out.

They just like taking not giving back when their sharp practices come to light.

This is the advert that has enraged many during a debate.After this i will mention something the CFPB is trying to do that could make claiming back for millions of Americans cost effective and not needing to pay Lawyers.

The American Action Network, the sponsor of the advertisement, is led by a team of lobbyists employed to beat back consumer protection regulations on behalf of industry clients. American Action Network board member Vin Weber is a lobbyist at Mercury LLC, where he is registered to work as a Navient lobbyist. On his registration forms, Weber says he specifically works on matters related to the CFPB.

Weber’s colleague on the board, Tom Reynolds, is also a registered lobbyist for Navient through the law firm Nixon Peabody. And another American Action Network board member, Barry Jackson, works with Brownstein Hyatt Farber Shreck, a lobbying firm that serves a number of student loan and payday lending firms on issues relating to the CFPB.

The link.

https://theintercept.com/2015/11/10/navient-fox-debate/

It is hard to believe that companies in America have had some protection you may well not believe could happen in modern day America.Some of you may not.

And also the CFPB has announced a Proposal to ban arbitration clauses.

In early Oct. 2015, the CFPB announced it was considering a proposal to ban the use of arbitration clauses by consumer financial companies. These clauses essentially revoke the right of a customer to take legal action against a company, serving as a free pass that lets them avoid accountability. While most individuals won't go to court on their own against a financial service provider, large numbers of customers can band together to file a class-action lawsuit when they're eligible — and millions are. However, arbitration clauses prevent people from participating in a class-action lawsuit, something the CFPB has determined is a violation of customers' rights to have their day in court.

If this happens i hope many Americans will seek redress for what the Legal Loan Sharks have put them through.Going back years hopefully.

I wondered why people themselves were not claiming back individually in America.

Well soon this may change then all hell will break loose.

No wonder the CFPB is coming under pressure.

The CFPB has recovered over 10 Billion for consumers in the last five years who have been cheated by financial services companies -

Just in case any Americans are reading this,fire in those complaints to the CFPB.

Submit a payday loan complaint to the CFPB

Soon hopefully you will be seeking hundreds or thousands of dollars back individually.Easily.

http://www.consumerfinance.gov/complaint/#payday-loan

https://www.citizensadvice.org.uk/about-us/how-citizens-advice-works/media/press-releases/quarter-of-payday-loan-customers-could-have-borrowed-from-banks-says-citizens-advice/

 

 

And according to the article above by Citizen's Advice - at least a quarter of those who took out Pay Day Loans could have borrowed from their Banks ?

 

Interesting comment, when nearly all of those who have posted on CAG have said they didn't stand a hope in hell of doing that.

They can say that, but did they actually try and were turned down.

They can say that, but did they actually try and were turned down.

I would be interested to hear how they came to this conclusion, connif ?

Perhaps it was assumptions because they have had problems in the past, maybe it would be a good idea to ask them why they didn't try there first when the next opportunity comes up.

Yes, although hopefully, people will now realise that PDLs are not the way to borrow money.

Just popped in to let you see what happened to a vulnerable payday loan customer in Canada.With video.

CBC Calgary reported Keewatin's story on Wednesday. The Calgary resident — who relies on Assured Income for the Severely Handicapped (AISH) — had borrowed $400 for a damage deposit in March 2014.

Every month he repaid that money, plus $92 in interest, but then had to turn around and borrow the $400 again to keep afloat.

He says he's paid almost $2,000 overall.

http://www.cbc.ca/news/canada/calgary/payday-loan-good-samaritan-ashley-keewatin-1.3263549

Does not matter where you are-the question is-

What happens when you click on a payday loan ad?

Down the long and winding road of ‘lead generation’

https://medium.com/@jlkoepke/what-happens-when-you-click-on-a-payday-loan-ad-e9164dc83eb9

Let us go back a year for those that think perhaps i am going on a bit.

Payday loan firms sent ONE THOUSAND texts to grandad after he killed himself over debts.

Ian Jordan, 60, racked up more than £20,000 worth of debt to more than 12 firms over a year despite being unemployed due to ill health

http://www.mirror.co.uk/news/uk-news/payday-loan-firms-sent-one-3892889

Time to let the lenders know they behaved badly to put it mildly.

How by seeking redress,claiming back charges and fees etc.

A link that helps you do this.Easy to do.If you get stuck ,open a thread and we will help you.

Were you caught in a Pay Day Loan Trap ? - You may be able to make a claim

http://www.consumeractiongroup.co.uk/forum/showthread.php?455382-Were-you-caught-in-a-Pay-Day-Loan-Trap-You-may-be-able-to-make-a-claim-nbsp

Don't forget that 118 118 have now jumped on the bandwagon with an APR of 99% grrrr

I see, let me take a look. Let us compare a certain lender with a Credit Union Loan.

Representative example: Amount of credit £1,500 for 2 years.

Interest rate: 71.3% pa (fixed). 24 scheduled monthly payments of £118.88.

Total amount payable: £2,853.12. Representative 99.9% APR.

Can anyone tell me how much that costs in interest.

Credit Union Loan

You will be borrowing: £1500.00

at 14.90% APR

Each repayment will be (including interest): £71.98

per month The number of repayments will be: 24

over 2 years The total amount repaid will be: £1727.61

The total amount of interest will be: £227.61

Forget payday lenders – there’s a much better way to borrow

Wonga charges an APR of 1,509%, QuickQuid 1,270%, while doorstep seller Provident -Financial quotes 1,068%. Yet there is an alternative source of loans for hard-pressed individuals without a good credit history, and where interest rates start at just 12.7%.

Credit unions – co-operatively managed “run by you, for you” organisations – offer savings and loans products starting at just £50, and after years in the shadows are finally making more of an impact in England.

They now serve 1.2 million -people, including 128,000 junior savers, across England, Wales and Scotland, with assets of almost £1.3bn – and on -average, 126 new members join every day. And they take a very different approach to the loan sharks that prey on Britain’s poorest.

http://www.theguardian.com/money/2015/oct/24/forget-payday-lenders-better-way-to-borrow?CMP=share_btn_tw

Join your Credit Union in a little while you will perhaps be glad you did.

http://www.findyourcreditunion.co.uk/home

A addition to the Were you caught in a Pay Day Loan Trap ? - You may be able to make a claim thread.

http://www.consumeractiongroup.co.uk/forum/showthread.php?455382-Were-you-caught-in-a-Pay-Day-Loan-Trap-You-may-be-able-to-make-a-claim-nbsp

If you wish to make a complaint - you will find contact information on this thread

fkofilee has provided contact information for the lenders.Will help you a lot,save you looking.

http://www.consumeractiongroup.co.uk...ct-Information

What are credit unions and how can they beat payday lenders?

Credit unions offer affordable loans to low-paid local people. They may not have the advertising capacity of lenders like Wonga, but it’s a growing movement

How long have they existed?

The first credit unions were formed in Germany in the 19th century, and the idea later spread to the US and elsewhere. The UK was late to the party: one of the first credit unions in Britain was the Hornsey co-operative, formed in 1964 by West Indian immigrants who couldn’t get access to loans from banks.

http://www.theguardian.com/public-leaders-network/2015/nov/17/credit-unions-beat-payday-lenders-wonga

Every now and again i just have to repeat this.

Then i leave it for a short while.

Link the Post Office to the Credit Unions-Provide the IT platform to do this-so everyone is close to one.Fight back against high cost lenders

Oh ok,a touch more then i will leave it.

Rambled on about this for a couple of years now.

Many times i have been thinking about things and always comes down to the Post Office,the Credit Unions and the Church to fight this problem,given up on the banks, not just in the UK but many countries.

Only today i have been looking at Post Offices in many countries,some virtual and you can see how this could work if the effort is made.

I had better explain the Church Role as they did promise to fight the Payday Lenders.

Compete them out of business.

A room or a hall a couple of times a week in communities for use for Credit Unions.

And from a business point of view,always comes down to that i know.

Would increase footfall and business in Post Offices.

In Churches it could increase congregation,make communities closer as was in the past.

For Credit Unions it would increase membership and money flowing in to be lent out locally and spent locally.

And convince people to invest,for returns received.`

Not convinced.

Who would believe America are thinking along similar lines at the moment.

Bernie Sanders: let’s turn the Post Office into a bank!

Bernie Sanders wants to turn the U.S. Postal Service into a bank so it can put out loans. He told Fusion.net last week

how awesome of an idea it’d be because it would fight back against those dirty, rotten payday lenders.

http://hotair.com/archives/2015/10/20/bernie-sanders-lets-turn-the-post-office-into-a-bank/

America again-

See how the lenders find ways to target the people when things tighten up.

I know of some here who have found things difficult with the online,offshore lenders.

Are Debit Card Payday Loans Safe?

A new question has come up lately from our customers that asks: “Are debit card payday loans safe?”

This question kind of took us by surprise not because we have never heard it before but because we have heard it quite a bit in the past but not for some time.

Payday loan companies used to use these but in the last several years they have been advertising no debit card payday loans because the selling point of not needing a debit card was huge.

Now all of a sudden they are going back to the practice of using them again and we went looking to find out why.Link and video.

http://helppaydayloandebt.com/are-debit-card-payday-loans-safe

As Americans keep being targeted many are really trying to block the CFPB intentions of sorting the problem out.

CFPB conspired with left-leaning group to draft Obama payday loan crackdown, emails show

http://www.washingtontimes.com/news/2015/nov/19/cfpb-conspired-with-left-leaning-group-to-draft-ob/?page=all

Back to Britain now.

Guarantor lending as damaging as payday loans

More than 50,000 people a year are taking out guarantor loans. These are aimed at people with a poor credit history, they can be repaid over periods as long as five years, and they carry high interest rates of up to 46 per cent per year.

Family members or friends act as a guarantee for this loan, if the borrower fails to pay off the debt. Guarantor loans can be damaging as they are not covered by the interest rate cap that was imposed on Payday loans in January this year.

Many Guarantors are unaware they are signing up for large debts and can be legitimately pursued by debt collectors, even in cases where the borrower has died.

http://www.thewestmorlandgazette.co.uk/news/13930329.display/

Alleged fraudsters 'conned Wonga out of £3m by stealing identities of 19,000 people'

The defendants allegedly made more than 19,000 applications for money to be paid into their accounts by exploiting the company's faulty website algorithms.

http://www.mirror.co.uk/news/uk-news/alleged-fraudsters-conned-wonga-out-6802680

I know a couple of people who are hooked on these terminals.The crack cocaine of gambling.

It must be a massive problem now.

And can you believe was allowed to borrow of ten payday lenders.

Gambling addict took his own life after blowing £30,000 in a year on betting terminals

http://www.mirror.co.uk/news/uk-news/gambling-addict-took-life-after-6745378

Perhaps someone in the forums can post this elsewhere but caught my eye.

Return of the liar loans: UK firms setting up in Eastern Europe offer high-risk mortgages that do not require borrowers to prove what they earn

The only condition is that the company must pass the lending rules of the country in which it has based itself. It is also not allowed to have a property or a branch in the UK.

Owner-

Mr Wingate is the former owner of Barnsley-based payday-loan company Quick Loans, which shut down following a crackdown by the FCA in 2014. It reopened as a loan broker.

Read more: http://www.thisismoney.co.uk/money/mortgageshome/article-3322836/Return-liar-loans-UK-firms-setting-Eastern-Europe-offer-high-risk-mortgages-not-require-borrowers-prove-earn.html#ixzz3sEUkKTbk

An Oswaldtwistle Mills worker who stole nearly £24,000 from the company to pay off payday loan debts has avoided jail.

Matthew Anderton submitted fake invoices for petty cash for companies that did not exist and pocketed the money over a two-and-a-half year period.

Burnley Crown Court how he worked at the award winning shopping centre as an electrical engineer and, after getting into debt, ‘fell into the trap’ of taking out payday loans with Wonga and Lending Stream.

http://www.accringtonobserver.co.uk/news/employee-who-stole-24000-oswaldtwistle-10401923

One persons way to avoid Payday Loans.

Running on empty and how to avoid payday loans

How to avoid payday loans My personal financial situation has been rather tricky for the last three and a half months. However, this is not a big moan about that, far from it. Instead, I’ve realised that a lot of other people might be finding themselves in similar circumstances – and that my experiences could perhaps help others from getting caught up in what I see as The Debt Trap.

http://www.pennygolightly.com/running-empty-avoid-payday-loans/[/url

Wonga wont give up..

'The embattled payday lender Wonga is to introduce longer-term loans as it seeks to diversify its business following a string of regulatory fines and restructuring costs. Sky News has learnt that Wonga will this week begin testing a 90-day loan which allows customers greater flexibility to spread repayments over a longer period. The product, which will be piloted for several months, is the first extension of the Wonga brand to be unveiled since the company announced in April that it had made a loss of more than £37m last year....

http://news.sky.com/story/1594232/payday-lender-wonga-to-test-90-day-loans

(please dont fall for their new loans)

Wife of suspected ISIS terrorist 'used payday loans to fund his bomb-making purchases on eBay'

The wife of a suspected ISIS terrorist took out payday loans to fund his purchases of bomb-making equipment on eBay, a court heard.

Sana Ahmed Khan, 24, is accused of financing Mohammed Rehman, 25, as he allegedly plotted to attack London in the months leading up to the tenth anniversary of the 7/7 attacks.

http://www.mirror.co.uk/news/uk-news/wife-suspected-isis-terrorist-used-6938824

Payday loans: Late repayment can cause you serious problems

Before you take one out, use this tool to get advice

https://www.moneyadviceservice.org.uk/en/payday-loans

Payday credit checking firm pulls out of the UK

Crackdown on short-term lenders has made CoreLogic's real-time data sharing business unviable

http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/11993833/Payday-credit-checking-firm-pulls-out-of-the-UK.html

Wonga hires former head of responsible banking at Lloyds

The controversial short-term lender is trying to repair its business after a series of painful write-offs and fines

http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/12037217/Wonga-hires-former-head-of-responsible-banking-at-Lloyds.html

America-a lot going on,just a couple of articles as the CFPB who have worked out what these legal loan sharks are upto and have the power to act are coming under pressure from lobbying groups.

105. Lawmakers have a choice: they can continue to kowtow to an industry that preys on the poor or they can do what’s responsible and protect those who too often are susceptible to the industry’s quick-cash [problem]s. Canton Repository: Payday lenders continue to gouge borrowers

http://www.cantonrep.com/article/20151122/OPINION/151129952/?Start=1

106. “The total lent to her was less than $800,” Field said. “It cost me over $12,000 to extricate her from that. A good portion of that went to payday lenders, but there was a good bit of collateral damage as well. These folks had access to her bank account, they made withdrawals, checks bounced, overdraft fees accrued, utilities were cut off and had to be re-established, a rent check bounced. If you don’t have a dad to come bail you out and you get into this, you’re sunk.” Waco Tribune-Herald: Regulating predatory practices of payday lenders should be discussed, debated

http://www.wacotrib.com/opinion/editorials/editorial-regulating-predatory-practices-of-payday-lenders-should-be-discussed/article_1e1d76e6-859a-59f3-8402-9aeaabdc5224.html

And a area i have been keeping a eye on Sioux Falls South Dakota.

Faith Leader Organizes Payday Loan Petition Group

http://www.keloland.com/newsdetail.cfm/faith-leader-organizes-payday-loan-petition-group/?id=186796

As the area gets targeted by the predators the King of legal loan sharks celebrates.

Payday Loan King Opens Pawn Shop With Shooting Range and Concert Hall COMPLETE WITH GOLD FOUNDRY.

http://time.com/money/4120426/payday-loan-king-opens-pawn-shop-with-shooting-range-and-concert-hall/

Back to Great Britain.

Taking out a payday loan to pay for Christmas could increase costs by almost £600.

New analysis from Citizens Advice finds the average spend for Christmas jumps from £821 to £1,413 if paid for with a typical payday loan of three months.

The charity also ran an analysis on a number of popular Christmas goods to highlight the significant price hikes if paid for with credit:

A turkey that costs £25.00 could end up costing £43.00 on a payday loan.

A self-balancing scooter ‘hoverboard’ priced at £299 could set buyers back by £514 on a payday loan and £344 on an overdraft.

A tree retailing at £45 could cost £77.40 on a payday loan and £48.80 on a credit card.

A Star Wars Millennium Falcon toy (RRP £92) could cost £158.24 on a payday loan and £105.80 on an overdraft.

A 50 ml bottle perfume that retails at £44.50 would cost £76.54 on a payday loan.

https://www.citizensadvice.org.uk/about-us/how-citizens-advice-works/media/press-releases/christmas-can-cost-72-more-on-a-payday-loan/

It is very scary that some people will still be repaying PDLs that funded last Christmas and are still prepared to borrow again for this !!

from that skynews link #687

'...Wonga, which has become the target of sustained criticism by opponents of the short-term lending sector, is going through a process of authorisation by the FCA, having been operating under interim licences since last year. The regulator has estimated that the vast majority of the roughly 400 payday lenders operating in Britain will go out of business following the introduction in January of a price cap on loan and repayment charges. Analysts have expressed scepticism that Wonga's new management team will be able to resuscitate its brand in the wake of a series of reputation-battering scandals...'

my emphasis

Maidstone mum Rose-marie Morrison stole £49,000 from Londis to fend off payday loan sharks

Well personally i think the judge made the correct decision.

But that is my personal view.

http://www.kentonline.co.uk/maidstone/news/mum-stole-49000-to-fend-47517/

Not seen this news perhaps some of you have.

Payday loan company Wonga have ended their NUFC sponsorship after 3 years.

Bad news as i thought this team in Birmingham are really needed at this time.

Pioneering team has prosecuted more than 330 loan sharks but now faces the axe

About 17 jobs could be axed from its 54 Birmingham-based staff, who have secured more than 330 prosecutions since its 2004 launch.

It has helped at least 24,000 loan shark victims and had £63million in illegal debts written off. The StepChange debt charity said: “The team protects very vulnerable people and no other organisation can fill the gap if the cuts go ahead.

http://www.mirror.co.uk/news/uk-news/tory-cuts-mean-illegal-loan-6962521

21 million people struggling with bills in Great Britain.

A massive amount of people stressed and worried out there.

For those that are interested enough to delve deeper.

Debt Awareness Week 2016: Will you help raise awareness of free debt advice this January?

http://www.stepchange.org/Partnerships/DebtAwareness2016.aspx

If you're struggling with a budget this festive season, StepChange have some great advice http://ow.ly/VzolL

I agree that the reduction in funding the Birmingham illegal loan team does not make sense.

As for the lady who evaded prison for stealing.. I have mixed feelings about that - the same judge would almost certainly have issued a custodial sentence to a pensioner who was unable to pay their council tax !

'The Government is looking to introduce a new levy on payday loan companies to fund support for people who fall victim to illegal loan sharks, the Chancellor has said. George Osborne told MPs that the proposal was being examined to plug funding gaps in the national authority dedicated to cracking down on such illegal lending people who got into debt.......A similar proposal for “a new levy on payday lenders” notably appeared in Labour’s 2015 election manifesto. The money from that levy would have been used to fund “low-cost alternatives” to such lending, including credit unions, however........'

http://www.independent.co.uk/news/uk/politics/government-planning-new-tax-on-payday-lenders-to-fund-loan-sharks-crackdown-george-osborne-announces-a6766481.html

'The Government is looking to introduce a new levy on payday loan companies to fund support for people who fall victim to illegal loan sharks, the Chancellor has said. George Osborne told MPs that the proposal was being examined to plug funding gaps in the national authority dedicated to cracking down on such illegal lending people who got into debt.......A similar proposal for “a new levy on payday lenders” notably appeared in Labour’s 2015 election manifesto. The money from that levy would have been used to fund “low-cost alternatives” to such lending, including credit unions, however........'

http://www.independent.co.uk/news/uk/politics/government-planning-new-tax-on-payday-lenders-to-fund-loan-sharks-crackdown-george-osborne-announces-a6766481.html

The best use for any levy like that would be to catch the loan sharks not give it to the borrower. That way they will kill two birds as the shark will be behind bars so end of loan.

Now i feel the Mirror article is kind off could happen not would happen.

Did George Osborne say these cut were definite or did he say.

“We take very seriously illegal loan sharks and excessive interest charges on payday lending – which is why it was Conservatives who introduced the first ever cap on payday lending,” he told MPs at PMQs.

“[With regards to] the funding for illegal money laundering and loan shark teams we are looking now at a levy on the industry to meet the funding requirement [of the illegal loan shark team].”

I am not going to say to much about Labour who were knocking at the door with axes to get these caps in place.The pressure on the government must have become unbearable.

It is done so am not going to dwell on that.

Oh i cannot resist,let us go back to 2013.

See what Stella Creasy MP for Walthamstow said.Now whose idea was a levy George Osborne.

Labour plans payday lenders levy to fund low-cost credit

http://www.bbc.co.uk/news/uk-politics-24560098

I mean why would you cut funding when it has helped over 24,000 people and written off over 63 million in illegal loans.

And also how much has it had in criminal assets seized and cash that has been pumped back into local communities.I have seen this and will put a example on.When i find it.

Here you are one example of money being seized of a Loan Shark and handed back to the community in a interesting way.Where did the cash found at his house end up.

There are many stories like this one.

Loan shark's cash is handed back

http://www.thesun.co.uk/sol/homepage/news/2249594/Loan-sharks-cash-is-handed-back.html

So perhaps the levy will help fund the illegal money team.Which is as far as i know 3.6 million.Well worth it.

But if funding can be found from elsewhere instead of the government,fair enough.

Some of the victims are in witness protection i believe such is the fear these loan sharks can create in communities.

I think it is time to look at them a little closer.

Back a few pages on page 32 post 633 i wrote a little about them and put a song on from Salford as i have done throughout this thread when roused enough.

And for those that do not know that much about the Loan Sharks a video with real experiences.

Many more stories on the page .A few years old now.