Time to catch up on the Payday Loan news.I have had a break away from the facts and figures for a while.

Time to get to grips with what is happening out there with the legal loan sharks.

Starting with the Which look at things.

Very unhappy that the sharks do not seem to have taken any notice at all of the legal letters that seem to have been flying their way asking them to reduce their rip off fees.

Tipping people further into debt

Our investigation found 10 of 17 leading payday lenders with default fees of £20 or more. Four lenders charged £25 or over, with Wonga topping the table at £30.

We believe that such excessive fees are unlawful under the Unfair Terms in Consumer Contracts Regulations 1999 (UTCCRs). This regulation states it is unfair for lenders to charge a disproportionately high fee if borrowers default on a loan.

Update

FCA must intervene on high default fees

http://www.which.co.uk/campaigns/money-payday-loans-overdrafts/FCA-must-intervene-on-high-default-fees/

If Which proves to have the right opinion and challenges arrive the Sharks may have to pay back plenty.

Including the ones that have headed for the hills.

Time will tell.

And some good news involving the Credit Unions.

And it seems the Church is slowly getting things together with the Credit Union idea.Starting this year for Church employees. How long this will take before the idea is launched across the nation i do not know.But will look at.10 years was suggested at one time.To late for many or will it be better late than never.And a good thing for future generations.The children growing up now

And the man heading this is ex senior Barclays banker.Quit through stress.

10 years it will be some may think.

1 day a month job.

In America as many know the banks tried to destroy the Credit Unions

More people putting more money into the good old Credit Unions will send a clear message to the banks.

As Credit Unions modernise the banks will just love that idea.

No,you will have to be a mind reader to think what my message is.What is your message.

Are we going to be left after the FCA get to grips with the sharks with a few super lenders or are we already when one report says 75% of lending is already done by the top 3 feeders.

Also a look across a few countries,have a nosey what is going on in America where some right battles have been going on involving Texas, the Indian Tribes real wild west stuff. and elsewhere.

And as usual have your say.Agree or disagree.My position though is quite clear.

I am no fan of the legal loan sharks.In my mind old as it is becoming they have targeted the people and communities of Great Britain quite clearly like the predators they are.

Time goes so quick,time for tea,fish fingers what else.

Caught from the local coastline battered and grilled.Fresh at least.

Recession has not finished yet in my neck of the woods as some keep saying.Has it finished where you are.

Finding regular work is like finding a piece of Ambergris on my local beach and i have been looking.Look it up.Dream for a while.Then as i have land back to earth with a bump.Wet feet and windswept and beginning to feel like Robinson Crusoe.

Back soon with plenty of news.

Oh no do some say.The old owl is back.

I don't say oh no. Welcome back tawny

Can't say I've noticed that the recession's over either.

Sorry about the delay in posting the latest news on payday loans but shortly after my last post my hard drive packed in.A new computer should be arriving today.At the moment I am just using a small ipad which I am not to keen on.

I will just mention this is a gift from someone gratefully received that came out of the blue last night, I have not just won the lottery.WIshful thinking.

A lot going on including the FCA hopefully raring to go now they have the teeth to bite back against the trickery of the legal loan sharks

A article involving the Cheque Centre has raised my blood pressure a touch higher than it should be not for the first time.

When this shop opened in my town I sent them a welcome to the Cheque Centre tweet the firm that likes to trap people on the cycle of debt.Seems things have not changed.

There is good news as well including some newspapers now giving free advertising to credit unions in their local areas, ongoing not one offs which has resulted in, well all will be revealed soon.

Old Tawnyowl raring to get stuck in to the legal loan sharks again shortly and reveal some of their trickery.

And remember if you are in trouble with the sharks cancel that CPA get back in control on your terms.

Do not let them keep hoovering out your accounts with the words biggest hoovers.

As I have said before they will keep trying many times a day and hoover them out which could leave you with bank charges and all sorts of trouble.They will grab your wages before you know they have been paid in.

Wonder how much the banks make or have made on the back of this problem.

Who knows, and how involved have the banks been with some of these legal loan sharks directly or four times removed over the last few years.

And how many pension funds, councils and who else has investments in the legal loan sharks while preaching how bad they are for local communities and businesses.Draining the local communities of money, packed up and jetted out of town never to be seen again.

And how are those payday loan brokers doing.Are they paying people back on time now or are many using delaying tactics hoping you forget or give up on things.

Enough for now, have your say, will be back soon.Tawnyowl.

Hi Tawnyowl, nice to hear about the FCA hopefully using their teeth for the first time on PDL companies - hope they get a really big bite and show what they are made of.

I know about PC problems, my keyboard on my laptop was playing up, so I googled the model, found out you only needed to remove three screws and that the replacement keyboard was £9.49 on eBay, so ordered one, came the following day and within 5 minutes had the keyboard back. YAY - didn't have to fork out for a new lappy!

As for Credit Unions, there is one active one where I am working and should I get taken on permanently I will deffo join it, there is a new local one set up and I am trying to get to join that one, so was wondering can you be in two different Credit Unions or just the one?

This year has its own difficulties with my youngest sister being diagnosed with Breast Cancer (but luckily they seem to have got it early and it is a more common one and the prognosis is extremely good. She starts Chemo at the end of this month and I am busy making her a shawl.

Will keep an eye on the activities of the FCA and report anything I come across on the PDL side.

Again, ONE LICENCE PER TRADING NAME should be the norm for all sectors of the Credit Industry.

Hi SIllygirl

Nice to hear from you.

I hope your sister recovers over time and sure she will with finding this terrible disease, cancer early.

Hope the treatment goes well and recovery is quick.Let me know how things go as treatment progresses.

Best wishes to your sister for a speedy recovery.

Nice sisterly thing to do, the shawl.

Any news about the legal loan sharks, put it on anytime.

This thread is hungry for up to date news.

As you have said one licence per trading name.

Hope to hear from you soon, bye for now.

Tawny.

Pleased to see you are back TO

I truly hope the FCA lives up to its hype - so far it does seem as though it will.

http://www.dailymail.co.uk/news/article-2571091/Undercover-MoS-film-exposes-payday-loan-firm-preying-poor-heavy-drinkers-Waving-wads-cash-man-brags-lend-pay-raid-bank-accounts.html#comments

CHEQUE CENTRE hits the headlines again.

Article and video

What a delightful place this must be to work.Where does the pressure come from to act this way

I bet most of the staff leave or are stressed out most of the time.

FCA hopefully will pop in soon and take a bite or two and give some in house training.

Or close this shop of sharks down.Going to be very interesting the next few months.

FCA uses words like we will take you out if you do not comply.

And I believe this starts from this weekend.

Trouble is findind their head offices is like finding a needle in a haystack.

Or a long trip over the Atlantic

Same with the payday loan brokers.

Another bunch to tackle there.

Is it true that Wongas plush headquarters in London is owned by the Queen.

Wongas landlady is the queen.If so put the rent up and drive these clean cut boys out of the country.They act so innocent but are the kings of the predators targeting your communities and towns.Here endeth my Sat morning rant.Please put up with me and have your say agree or disagree this is your right.

Anyone who works in any of these shops come and have a chat.Tell us what pressure you are under and what it is like and how much pressure there is to keep rolling people over this way.And of course any new tricks that you know off to avoid new regulations coming involving rollovers, things like just closing the old loans down and issuing new ones adding all the charges thus avoiding that word rollover.Or perhaps issuing longer loans perhaps, same result though, people trapped on the cyle of debt.There is so much money to be made the book of trickery must be being altered to get round things.

Many more thoughts to put on and articles from here and America that make you think what is going on but enough for now.I will have to put them in order.

Wonga chairman to stand down

.http://www.theguardian.com/business/2014/mar/30/wonga-chairman-step-down-fca-crack-down-payday-lendersDamelin's privately held stake in Wonga could be worth hundreds of millions of pounds if the company is sold or floats on the stock market. He owns 9.8m Wonga shares, according to the firm's latest filing with Companies House. Wonga made pre-tax profits of £84.5m in 2012, a 35% increase on 2011.

The Tory party donor and venture capitalist Adrian Beecroft also stands to benefit if the company succeeds in its plans to float on the Nasdaq stock exchange in New York with a £1bn valuation.

The MoS ran the story a few weeks ago - they must be getting desparate! That young female manager should be ashamed of herself and her company's tactics. If you look at the comments they are over a month old....

Luckily I got out of the payday trap a long time ago (over five years now - YAY) but still get the odd phone message - which I forward as SPAM to my phone provider.

The trouble with the property being owned by the Queen is that she has very little control over her tenants - there was a problem a while ago in Westminster where it was discovered that the Royal Family had the head lease on a lot of strip clubs - but somewhere along the line nobody had informed them of the change of use. Wonga won't have the building lease in their name, it will be in the name of their parent company, or a holding company of some kind (not quite sure how to check up on that) so at the end of the day Wonga themselves are 'in the clear'.

British adults twice as likely to use payday loans as credit unions.

I wrote a while ago that i hoped the Credit Unions could link up with the Post Office network could you imagine that.We all know how near the post offices are to us and how many there are.I thought it was going to happen a while back.I will check on that it was a couple of years ago now.Seemed such a great idea.

Stella Creasy, the shadow consumer affairs minister, commented on R3’s research: "It’s shocking so many now struggle to get to payday and that this is due to household bills like energy, rent, or repaying credit cards and payday loans. As we see more and more people going to payday lenders or getting into debt these problems are going to get worse, and if interest rates rise or rents continue to go up we could see millions of families out on the street or becoming so called zombie debtors – paying just the interest not the capital on their debts – as they are stuck in a never ending spiral of debt and misery.”

http://www.creditman.biz/uk/members/news-view.asp?newsviewID=19725

Warning for rogue payday loan firms

FCA say they will take you out

http://www.bbc.co.uk/news/business-26826181

Payday lenders failing customers

http://www.bbc.co.uk/news/business-26817986

Payday loans finally face regulation.

http://www.scotsman.com/business/finance/payday-loans-finally-face-regulation-1-3365827

Watchdog urged to act on payday loan firms

Citizens Advice chief executive Gillian Guy called for instant action against rogue firms: “Consumers need a fair market, not one that exploits them. Lenders breaking the rules should be immediately thrown out of the market.”

http://www.independent.co.uk/money/loans-credit/watchdog-urged-to-act-on-payday-loan-firms-9240018.html

Archbishop of Canterbury takes war on Wonga into the classroom.Sants was drafted in to run the Church’s Task Group last year after the Archbishop threw down the gauntlet to payday lenders. He has vowed to set up a church-run credit union to offer struggling Britons an alternative to legal loan sharks and put the firms out of business.

He has specifically cited Britain’s largest payday lender Wonga as one of the firms he wants to target.

Read more: http://www.thisismoney.co.uk/money/news/article-2597754/Archbishop-Canterbury-Justin-Welby-wages-war-Wonga.html#ixzz2y55JdC4e

America.

A interesting article from the guardian

“The business model is to identify customers and lend to them as much as possible,” said Tom Feltner, director of financial services at the Consumer Federation of America.

It’s designed to be a cycle: two-thirds of the Americans who signed up for a payday loan took out seven or more loans per year, according to a study by the Consumer Financial Protection Bureau. In most cases, the new loans are made the same day as the previous loans are closed

Wall Street banks have provided $5.5bn in credit to the payday lending industry over the past several years, according to a recent report from the advocacy group Reinvestment Partners. Many current or former executives from banks like Morgan Stanley, Credit Suisse and Bank of America serve on the corporate boards of the biggest payday lenders.

It becomes a symbiotic relationship. Most big banks long ago fled impoverished neighborhoods: 93% of bank closures since 2008 were in zip codes where the median income sits below the national average.

The idea that banks and payday lenders are separate is, some say, a polite fiction. Only banks can give these businesses the access to the payments system that allows the whole scheme to work. The end result is that payday lenders can access customer accounts whenever they choose, and in exchange, the banks pocket handsome fees from a business that’s considered dodgy.

Payday lenders like having poor areas to themselves.

http://www.theguardian.com/money/2014/mar/23/payday-lending-interest-banks-advantage-congress

Thinking about that payday loan investment vehicle that was going to be set up promising

40%net.Sometime last year.

Wonder how many pension funds, councils perhaps dived in there.

Has your council, firm got investments in the legal loan sharks no matter how many times removed.How do you find out.Do you want to.

What would you think if they had.

It would be strange to think they have invested your money in something that was or is ripping money out of your communities and the people living there.

I am probably going to far in thinking like this and shall now go and lie in a darkened room for a while.Not for the first time.Or listen to some soothing music.

Bye for now Tawnyowl.

One more thing, just reading in America about a what seems a undercover operation called operation Chokepoint.President Obama it seems is no fan of the payday lenders.And along with the CFPB, similar to our CFA is flying in like a stealth attack under the radar and scaring the Banks and the lenders.Well time will tell, but it seems he wants them finished once and for all.

Just imagine how much money has been sucked out of communities by these bandits.

A lot to read but what would happen here to the legalloansharks if Continuous Payment Authorities to them were finished.The banks said no more, or were told to.

It is quite clear to us how people and communities have been targeted over the last few years and how they targeted areas.I have read how they went about this and it makes your blood boil.Just as the subprimers did here and America.

Cancel the lenders relationship with the banks and they are finished.

Problem solved, the quickest race to the exit doors ever.

Now I am sure someone may want to support these lepers of lending or have a say

or you may have a problem with them so I will put a link on so you can join in and have your say on the CAG.If you can not wait to just find the registration page.

Let your feelings out, agree or disagree, we do not bite.

And maybe you feel you want to put me in my place.

I survived the sub prime days ,just, and 3 or 4 recessions so far so if I am annoying you

with my views let your feelings out.I can not have it all my way can I.

There you are, got a problem with a payday loan, a payday loan broker perhaps, unsure how to cancel a CPA, can not see a way out of the problems with a loan from the lepers of lending

Share your problem have a chat and hopefully with help and advice you will find here as I did many years ago the stress you may be feeling will fade a touch.Registration link below.

http://www.consumeractiongroup.co.uk/forum/register.php

From time to time I put info on about the loan sharks and the team who tackle them in Birmingham.

Just in case anyone knows anyone in trouble with them links and advice below.

Packs for education in schools can be downloaded, videos, facebook and twitter links everything is there to look through.

http://www.birmingham.gov.uk/stoploansharks

Just been looking at a couple of articles in America which have some interesting views and facts.

Believe it or not outlawing payday loans will not lead to looting and pillaging.

http://consumerist.com/2014/04/06/believe-it-or-not-outlawing-payday-loans-will-not-lead-to-looting-pillaging/

Half of payday loans result in fees exceeding original cash advance

http://www.detroitnews.com/article/20140407/BIZ01/304070013

Back to Britain.

Fair credit for the NHS

http://labourlist.org/2014/04/fair-credit-for-the-nhs/

SHARKSTOPPERS.

Pledge to take action for fair credit.

http://www.movementforchange.org.uk/sharkstoppers

Take a look at what a credit union loan costs and maybe have a free financial health check

http://www.creditunion.co.uk/Loans.htm

Do you think Credit Unions get enough advertising in your local area.

Do you perhaps get info about them perhaps with your council tax bills.

Have you ever received any info through your letterbox.

Does your local newspaper advertise them at no cost perhaps.

Northern Echo in Darlington does and look how membership has grown there.

And perhaps a couple more I am trying to track down with the same result a large increase in members.

Would you like the Credit Union to link up with the Post Office, perhaps make it easier for you to access.

What do you think.

6 things your local council can do to tackle legal loan sharks

https://blogs.citizensadvice.org.uk/blog/six-things-your-council-can-do-now-to-tackle-legal-loan-sharks/

And one more thing you could feel like doing if you feel roused enough.

Have a payday loan protest bang in the middle of the high street hand out a few leaflets

And info on the legal loan sharks and leaflets on the good old local credit union.

Helps if you can get your local MP on board for a hour or two.

Here is one I took part in and how it went.

Blackpool protest against legal loan sharks targeting our communities.

http://www.consumeractiongroup.co.uk/forum/showthread.php?397825-Blackpool-Protest.Protest-against-legal-loan-sharks-targeting-our-communities.

And the message I got loud and clear is that people are sick and tired of these predators targeting them.And their communities.

Best to keep up with the latest warnings from the FCA

http://www.fca.org.uk/news/warnings/wagelender-cc

Credit Brokers posing as payday lenders to cash in on fees

http://www.citizensadvice.org.uk/index/pressoffice/press_index/press_20140120.htm

A historic month for good old credit unions

Credit unions: financial lifeline for UK communities comes of age

This April marks the 50th anniversary of the first two credit unions set up in Britain – formed to help those rejected by banks

http://www.theguardian.com/money/2014/apr/05/credit-unions-anniversary-borrow-save

Anger after company paid to chase payday loan victims given1.2 million from taxpayers coffers.

Would you want such a job.

Payday loan campaigner Mike Dailly, from the Govan Law Centre in Glasgow, said: “This may

not be welcome news to the many thousands of financially vulnerable Scots hounded by debt recovery companies day in, day out.

“Firms who buy debt from payday loan and other credit companies generally involve customers unable to meet their debts through illness, job loss or some other life event. http://www.dailyrecord.co.uk/news/scottish-news/anger-after-company-paid-chase-3386529

Money shop owner Dollar financial to be sold for 1.3 billion.

Profit warning over new regulations.

http://www.theguardian.com/business/2014/apr/02/money-shop-owner-dollar-financial-sold-lone-star

Payday loans can lead ro serious debt before you take one out , use this tool to get advice.

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

America.

I like to look at America and how the CFPB similar to our FCA is trying to tackle the payday lenders that are affecting so many people and communities.

And how the lenders wriggle round like ferrets in a sack trying to come up with new products

to keep people trapped on the cycle of debt and avoid new regulations.And keep cashing in.

Here is one to read if you have the time,

Consumer Protection Bureau Director Richard Cordray noted, “The business model of the payday loan industry depends on people becoming stuck in these loans for the long term.” Most of the industry’s revenue, in other words, comes from keeping borrowers on the hook and getting them to pay fees that very often dwarf the amount of the original loan.

The latest data should bolster the bureau’s resolve to act. But, as the evidence makes increasingly clear, the bureau will have to resist the temptation to focus exclusively on the traditional two-to-four week loan with a lump-sum repayment. To keep pace with a fast-moving market, rulemaking must also address the payday-like problems of an array of longer-term loan products developed by an industry that is playing all the angles to get around the rules – the anticipated as well as existing ones

USA

Why we need serious payday loan reform.

http://www.usnews.com/opinion/economic-intelligence/2014/04/03/why-we-need-serious-payday-loan-reform-from-the-consumer-protection-bureau?src=usn_tw

Back to Britain where it seems people have cut back so much what is left to cut.

This govt, the coalition is finding the pressure getting to them it seems.

New news from that den of Austerity the House of Commons that maybe raises your blood pressure a touch as you drink a glass of water, and turn the heating down.A lighter look or is it.

We are all in it together comes to mind.

House Of Commons Champagne bill soars under Coalition.

http://www.huffingtonpost.co.uk/2014/04/08/parliament-champagne-soars-_n_5104787.html?ref=topbar

Mike Dailly who is also a member of the Financial Conduct Authority (FCA) Consumer Panel. ;-) http://mikedailly.weebly.com/

Wonga payday loan ad banned.

http://www.dailymail.co.uk/news/article-2600364/Wonga-payday-loan-advert-banned-saying-5-853-PER-CENT-rate-irrelevant.html

MSP's attack Alex Salmond for handing 1.2 million to payday loan debt collectors.

http://www.dailyrecord.co.uk/news/politics/msps-attack-alex-salmond-handing-3391222

Labour pushes for bill to stop payday loan ads till after the watershed.

Stella Creasy, Labour’s spokeswoman on consumer affairs, will seek to amend the Consumer Rights Bill when it reaches its report stage after Easter. "We want to tackle the aggressive marketing practices of such companies," she said.

"With 2.5 million people already in a debt management plan, our proposals are an opportunity to reform this industry before millions more end up caught in their crosshairs

Stella Creasy, Labour’s spokeswoman on consumer affairs, will seek to amend the Consumer Rights Bill when it reaches its report stage after Easter. "We want to tackle the aggressive marketing practices of such companies," she said.

"With 2.5 million people already in a debt management plan, our proposals are an opportunity to reform this industry before millions more end up caught in their crosshairs."

http://m.campaignlive.co.uk/article/1289498/labour-pushes-bill-stop-payday-loan-ads-grooming-children

As I have said before I like to look in many places just for a change.

The legal loan sharks tentacles have reached far and wide and are powerful with powerful friends.

Canada today.

How payday loan companies are targeting vulnerable borrowers with mobile apps.

http://business.financialpost.com/2014/04/08/bad-credit-ok-how-payday-loan-companies-are-targeting-vulnerable-borrowers-with-mobile-apps/

Ontario.

Ontario files lawsuit against payday loan operator cash store.

Has them wriggling round like ferrets in a sack.

Over 500 stores here in the UK the article says.

http://business.financialpost.com/2013/06/11/ontario-files-lawsuit-against-payday-loan-operator-cash-store/

One more from Northern Ireland.

Article a couple of weeks old.

Warning comes after man had taken out 11 payday loans.

http://www.impartialreporter.com/news/roundup/articles/2014/03/27/404511-warning-comes-after-man-had-taken-out--11-pay-day-loans-/

Back to Great Britain

Ex Dragon Star slams morally bankrupt payday lenders

http://www.huffingtonpost.co.uk/2014/03/14/theo-paphitis-payday-loans_n_4963602.html

ITV news reporting huge increase in foodbank use.

Including people turning up who have not eaten for 24 hours.

So things are getting better are they.

It seems for many this is not so.

Here is a story not for the first second or third time over the last year involving the Cheque Centre.

Where is the pressure for staff coming from to act this way.

The story maybe from March but some may not have seen it.

Any whistleblowers about from these lepers of lending feel free to let some steam off.

Especially any plans to avoid the new regulations coming in.

To much money involved for there not to be.

What tricks to keep preying on the people and communities of Great Britain are being spun.

Firm targets jobless.

http://www.dailymail.co.uk/news/article-2576609/Now-rogue-payday-loan-firm-targets-jobless-encouraging-debts-sky-high-interest.html

A couple of sentences that many people must be enraged about the charges that the legal loan sharks charge.Previous research by the consumer watchdog found that 56% of payday loan users had incurred charges for missed or unaccepted payments over the last 12 months. Wonga said that its £30 charge reflected the costs of incurred collecting the loans and that this price has been independently assessed by a business advisory service. “On the rare occasions where people can’t repay, we always encourage them to get in touch with us so we can do everything we can to agree an affordable repayment plan, including freezing interest and charges”. However Which? believes that payday lenders are using ‘excessive’ penalty fees to reduce their headline rates and lead customers to under-estimate the true cost of a loan

Does anyone know if anyone has challenged them legally in court as happened in the bank charges cases.

I do not believe these charges reflect their charges but contribute massively to their profits,

56% of payday loan customers have incurred charges in the last 12 months.How much has this cost,

Dinner hour over will try to work this out later.

From Stella Creasy Labour and Cooperative MP for Walthamstow.

Taking on the Sharks, Zombies and Cowboys: Ask your MP to Tackle Britain's Personal Debt Crisis

With two out of every five Britons reporting they can't make it to payday because of household bills and debt repayment costs, we need your help to protect our nation from the growing personal debt crisis spreading across our country.

The latest research shows because of these pressures the number of people taking out a payday loan from a legal loan shark is rising, and millions more Britons now have 'zombie' debts- where they can only afford to pay the interest but not the capital on what they owe. Without support to manage their debts, and a possible interest rate rise to come, many more will soon be joining them. The dream of saving for a future long gone, the battle we now face as a country is to help stop many more from going under.

Yet Britain's debt management industry is out of control, with some ‘cowboy’ firms keeping upto 90% of the repayments consumers make as fees for their services. Whilst the Financial Conduct Authority pledges to reduce this to 50%, without tougher action millions will find themselves stuck paying money they don’t have to companies who make their profits from the financial difficulties of families struggling with the cost of living.

We have tabled amendments to the Consumer Rights bill which would make debt management contracts that push people already struggling into more debt challengeable in court. We have also put forward measures to tackle the aggressive marketing practices of legal loan sharks and cowboy debt management companies - so far the Government has opposed all these measures.

Please ask your MP to help us change their mind and support our amendments. You can find your MP’s contact details here and there is a sample text below which you can use to write to them. Please let me know if you receive a response.

Without action millions more could end up drowning in debt and unable to make ends meet- lets work together to ensure everyone is protected from these cowboy companies!

Stella Creasy

Labour and Co-operative MP for Walthamstow and Shadow Consumer Minister

p.s.please share this email to a friend to encourage them to help our campaign or ask them to join our sharkstoppers activists or coop groups to help local people struggling with debt!

----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Text to use to write to your MP

I’m writing to you as one of your constituents to ask you to support changes in the law to protect people vulnerable to debt problems. Research has shown that two out of five of us is struggling to make ends meet to payday.

This isn’t due to expensive purchases and people living beyond their means – the most common problems are caused by everyday bills like the rising cost of food, household energy costs, transport and repayments on debts like credit cards and payday loans. With the Money Advice Service saying 9m Brits are already 'over indebted' and possible rises to interest rates to come, without action many more people in our country could find themselves drowning in debts they cannot repay which is bad for our economy and bad for our community.

Already 2.5 million people are in debt management plans, so we need to urgently reform the way some companies are charging fees for helping those already struggling with debt. Some companies keep up to 50% of any payments made for their own fees. Please support action in parliament to tackle these 'cowboy' companies and help ensure when someone seeks debt advice and help it doesn't push them further into trouble by protecting them from such excessive fees.

Please speak and vote in support of amendments Labour have proposed to the Consumer Rights Bill at its report stage on this issue. These will protect vulnerable consumers by making contracts for financial services that push people further into debt challengeable in court as unfair and tackle the aggressive marketing practices of legal loan sharks and debt management companies.

Please let me know if you will be supporting these proposals or if you do not support this campaign and these aims, your reasons why. I hope you will be able to stand up for the people in our country struggling to make ends meet and help give them stronger protection from those seeking to profit from their financial difficulties.

Yours sincerely,

[insert name]

[include your postal address to show that you’re a constituent]

Moving on.

Debt the new safety net.

http://m.insidehousing.co.uk/7003226.article?mobilesite=enabled

This article was published in March but I missed it.

One short term lender for every seven banks on the high street.

http://www.thebureauinvestigates.com/2014/03/12/uk-one-short-term-lender-for-every-seven-banks-on-the-high-street/

Loan shark jailed despite saying his rates were better than Wongas

http://www.manchestereveningnews.co.uk/news/greater-manchester-news/loan-shark-thomas-kiely-jailed-6947311

Former campaigner joins legal loan shark as PR head.

A former anti-payday lending campaigner and senior member of staff at a debt advice charity has taken a job with controversial loan company Wonga, as its head of PR.

http://www.independent.co.uk/news/uk/home-news/former-antipayday-loan-campaigner-joins-wonga-as-pr-head-9254852.html

Sharkstoppers target payday loan ads.

http://www.independent.co.uk/money/loans-credit/sharkstoppers-target-payday-loan-adverts-9248725.html

Payday loan borrowers need protecting from themselves.

This is a article about some borrowers who have taken out loans thinking they would improve their credit rating.They have money in the bank but after reading literature in the past suggesting this find the opposite is true when applying for mortgages.

Wonga deny that taking out a payday loan harms a consumer’s credit rating, referring to the Frequently Asked Questions section on its website.

“Because Wonga is made to look so easy people are going there without being aware of how this is affecting their credit rating.”

Well for some it seems despite having money their credit rating is trashed.

Clear answers from the lepers of lending are surely needed.

Or massive warnings saying beware taking out a payday loan will finish your chances of applying for a mortgage from many lenders.You are not worthy.Now trot off there's a good chap.

You will be stood outside the Bank or mortgage advisors door, stunned and thinking if you can, what the hell has just happened to me, us.I only took this loan to improve my credit rating now my, our dream has gone.

Do you think the lenders do not know or have known this for some time.

Do you think they care.

And what can you do about this problem.I will put a link to a thread on where some tried.At the end of this post.

On the FAQ section Experian said back in 2012: “When lenders check your credit report they are looking for evidence that you are a responsible borrower.

“Repaying a payday or short-term loan on time and in full should therefore strengthen your credit score

http://www.mortgageintroducer.com/mortgages/249362/240/Bridging_&_Commercial/Payday_loan_borrowers_need_protecting_from_themselves.htm

This is a interesting thread from back in July 2013 that started in the CAG

Payday loans damage to your future credit rating.

http://www.consumeractiongroup.co.uk/forum/showthread.php?398164-Pay-Day-Loans-damage-to-your-future-credit-rating

Tawnyowl off now for the rest of the weekend to get stuck into some new ideas and inventions.None have yet earned me my fortune.

But better to try and fail than not to try at all comes to mind.

This time next year we will all be millionaires.

Enjoy your weekend anyone who travels this way whether friend or foe.

Battle will recommence shortly.That is for sure.

Barclays new overdraft rates nearly as bad as Payday Loans.

Move has triggered a backlash on the banks facebook page.

http://www.dailymail.co.uk/news/article-2608123/Barclays-new-overdraft-rates-nearly-bad-payday-loans-Banks-investigated-regulation-changes.html

Cold caller payday loan [problem] leaves Beverley man 300 pounds out of pocket.

http://www.hulldailymail.co.uk/Cold-caller-payday-loan-[problem]-leaves-Beverley/story-20964063-detail/story.html

Logbook loans set to soar by 61%

Citizens Advice Chief Executive Gillian Guy said:

“Logbook lenders are on the rampage. Lenders have been cashing in on people’s difficulties getting credit as they struggle to make ends meet. Aggressive behaviour and excessive charges are pushing some people to bankruptcy.

“The law needs to change. Rules that allow lenders to take cars without warning and from people who haven’t even taken out the loan should be confined to the history books.

“Regulators and Government have quite rightly put payday lending in the spotlight but it is important other forms of credit are also subject to a strong crack-down and toxic forms of lending aren’t allowed to flourish.” http://www.citizensadvice.org.uk/index/pressoffice/press_index/press_20140417.htm

I have noticed that there is quite a bit of advertising for Log Book Loans on the television, just lately ?

Think tank suggests not for profit lenders could be sited in post offices to compete.

http://www.theguardian.com/money/2014/apr/20/ippr-payday-loan-levy-affordable-lending-wonga

Sad news that over 1 million food parcels have now been handed out to people going hungry.

Shocking that some have asked for food that does not need cooking as they have no electric or gas supplies.

And many to proud to ask for help.

Twitter user created parody comparing payday loans to debtors' prison

But Wonga lawyers tried to remove it from Twitter and sent legal warning

It has been accused of 'censorship by stealth' over the complaint

But after a weekend of bad publicity, Wonga has given up on the case

It also said it never intended to censor the internet, and made a mistake

http://www.dailymail.co.uk/news/article-2605149/Wonga-backs-use-logo-issuing-Twitter-user-notice-superimposed-image-debtors-prison.html

Organised crime link to payday loan trade.

Payday loans, sources stress, now offer relatively good legal cover for laundering income from drugs, prostitution and racketeering while at the same time providing significant profits in their own rights. Insiders say they also provide another way in which crime groups can tighten their grip on communities.

http://www.heraldscotland.com/mobile/news/home-news/organised-crime-link-to-payday-loan-trade.24023165

Call for 450million levy on payday loans industry.

http://www.itv.com/news/story/2014-04-21/payday-loans-levy-ippr/

More on this idea.

http://www.theguardian.com/money/2014/apr/20/ippr-payday-loan-levy-affordable-lending-wonga

Organised crime link to payday loan trade.

Payday loans, sources stress, now offer relatively good legal cover for laundering income from drugs, prostitution and racketeering while at the same time providing significant profits in their own rights. Insiders say they also provide another way in which crime groups can tighten their grip on communities.

http://www.heraldscotland.com/mobile/news/home-news/organised-crime-link-to-payday-loan-trade.24023165

That is an interesting article, TO.

Hi citizenB

I had to read it a couple of times.

We have read a lot over the last few years about the legal loan sharks this article

must be in the top 5.

Shocking news.Needs more research ,a closer look .Hard to believe one of those days when you say, I can hardly write this stuff.

Tommorow I am going on a protest locally, pictures and a story unconected to payday loans, Fracking a big issue and a worry for many.

Bye for now and what is next on the payday loan issues I am thinking.

Scary powerful organisations with powerful friends.

Do not worry to much or you will not sleep for worrying about these sharks targeting your communities, friends, family.And that is what they have and are doing now, slippery slimy little critters.

Sooner or later they will be dealt with.

As we have turned a page I will put the article on again as it gives you the shivers.

Organised crime link to payday loan trade.

Payday loans, sources stress, now offer relatively good legal cover for laundering income from drugs, prostitution and racketeering while at the same time providing significant profits in their own rights. Insiders say they also provide another way in which crime groups can tighten their grip on communities.

http://www.heraldscotland.com/mobile...trade.24023165

Action call on 'callous' payday loan firms after vulnerable man is bombarded with hundreds of marketing calls

http://www.walesonline.co.uk/news/wales-news/action-call-callous-payday-loan-7133094

Cheque Centre stops payday loans after criticism

http://www.edinburghnews.scotsman.com/news/cheque-centre-stops-payday-loans-after-criticism-1-3410318

Credit crackdown sparks mass exodus among payday lenders in UK

http://www.sundiatapost.com/credit-crackdown-sparks-mass-exodus-among-payday-lenders-in-uk/#.U3zJ5WhwZDs

Smart Loans prompt outcry for payday loans fee

Credit broker says would-be borrowers can claim back cash after flood of complaints to ombudsman

http://www.theguardian.com/money/2014/may/16/payday-smart-loans-never-received

FCA finds 20% of loan and credit companies' ads break advertising rules

Financial watchdog finds more than 100 ads of the 550 checked fail to be 'clear, fair and not misleading'

http://www.theguardian.com/money/2014/may/16/fca-loan-credit-companies-break-advertising-rules

Government welfare minister receives £10,000 from aggressive loans company

http://www.leftfootforward.org/2014/05/welfare-minister-receives-10000-from-loans-company/

Gangsters face crackdown on payday loan companies

http://www.heraldscotland.com/mobile/news/home-news/gangsters-face-crackdown-on-payday-loan-companies.24329833

If payday lenders are quitting Britain, what comes next?

http://www.theguardian.com/commentisfree/2014/may/27/payday-lenders-quitting-britain-what-comes-next

PAYDAY LENDING: FIXING A BROKEN MARKET

Full report PDF at bottom of article.

http://www.accaglobal.com/in/en/technical-activities/technical-resources-search/2014/may/payday-lending-fixing-a-broken-market.html

Remember the Subprimers and the carnage caused.

A article from America that may interest someone.

You could not write this stuff comes to mind.

http://libertyblitzkrieg.com/2014/05/22/introducing-subprime-business-lending-loans-with-125-interest-rates-are-being-securitized-and-sold-to-investors/

Hector Sants introduces network of credit unions to rival payday lenders

Former chief City regulator heads campaign for archbishop of Canterbury to prevent vulnerable people falling into debt

Sants said the network bringing together churches and credit unions would initially be piloted in three of the Church of England's 44 dioceses: Southwark, Liverpool and London.http://www.theguardian.com/money/2014/may/27/hector-sants-church-network-credit-unions-payday-loan?CMP=twt_fd

Financial advice to be available in church

The Church of England has launched a new scheme to promote responsible lending, which will see people being given financial advice in church.

The Church Credit Champions Network (CCCN) will promote the use of credit unions rather than payday lenders

http://www.bbc.co.uk/news/business-27589517

Credit Unions

400 across the UK

Not for profit

Low interest rates

1m members

Owned by members

Total assets: £957m

Offer: mortgages, loans, ISAs, insurance, current accounts, savings

British retailers set to take on payday lenders with credit union that will offer cheap

loans

Some interesting comments below the article from readers.

What do you think.

Is the revolution starting.

This could help millions of people who are struggling on the minimum wage.

Does the minimum wage need hiking to help people.

Well I suppose that is a stupid question, of course it does.

Something wrong when you get paid on a Friday, pay the rent or mortgage ,food, gas, electric, council tax etc and are then waiting for next friday to come.

Now get back to work.

No treat for the kids or any remote possibility of a holiday.

Feeling like robots, stressed exhausted in modern day Britain.

The cost of living is hurting people.

Apologies if this winds anyone up but it is what I am seeing around my neck of the woods.

Even people saying as they walk along, at least that is the bills paid.

And that today deserves a medal if achieved.

Is that what many people do now, flog themselves all week just to live.

Just saying as I see it.Agree or disagree have your say.

One thing is for sure it is far better if you need a small loan for a month to pay perhaps 8 pounds rather than 125 or therabouts from the legal loan sharks.

http://www.thisismoney.co.uk/money/news/article-2644701/British-retailers-set-payday-lenders-credit-union-offer-cheap-loans.html

Some video from TV explaining this news.

There is also a video from Stella Creasy MP for Walthamstow.

http://news.sky.com/story/1272467/retailers-credit-union-to-defy-payday-lenders

Labour MP Stella Creasy, who has campaigned against payday loans, told Sky News: "Anything that helps people access affordable credit as opposed to some of the legal loan sharks you see on your high streets - the payday lenders and the logbook loan companies - is a welcome move.

To end this fine Saturday some news that may raise your blood pressure a touch.

Just spotted a picture taken of a paydayloans shops latest gimmick.

A chap dressed as a bear hugging children outside .