Sunday, 14 July 2013

How to tackle payday lenders: GLC's new Payday Loan Survival Guide

With 90% of the payday lending market failing to comply with consumer protection laws to the severe detriment of vulnerable consumers, Govan Law Centre (GLC) believes there is now an urgent need to help people in the UK to fight back against payday lenders.

The payday lending market was recently referred to the Competition Commission, and in 2011/12 there were 8.2m new payday loans made in the UK alone. There is every expectation that this number will continue to rise, and with it the financial exploitation of consumers across Great Britain and Northern Ireland.

GLC has therefore decided to publish a free 'Payday Loan Survival Guide' for consumers across the UK. Our new guide explains how consumers can take back control of their finances, challenge unfair interest and charges, stop payday lenders from emptiying their bank accounts, and pay back debts legally due on a reasonable and affordable basis. The guide has been written by GLC's Principal Solicitor, Mike Dailly.

Govan Law Centre's new Payday Loan Survival Guide is designed for all consumers across the UK in difficulty with payday loans, and can be downloaded here (as a PDF) for free.

Our guide is free. It has been produced without funding, and we will be posting a link where charitable donations to GLC can be made by those who would feel able to help our work in this field. http://govanlc.blogspot.co.uk/2013/07/how-to-tackle-payday-lenders-glcs-new.html

Thanks for this Tawnyowl

Love the avatar

Thank you so much.

I am glad you like the avator.

One of the CAG members told me how to do it and helped me put it on some time ago.

I can not recall who, age and the mists of time are my excuses.

I think it may have been SOD-EM.

Definitely a member but also a general reference to Legal Loan Sharks some may say.

Anyway good on you Mike Dailly.

Sharkbiter,extreme.

The peoples champion.

The piece will help many.

Should get a medal and a song for writing such a piece.

Mind you he was or is Scotlands solicitor of the year.

Should be the solicitor of the decade.

I will now shut up and retreat to my perch.

Funky, This Will Help Load Of People Out

You beat me to it Tawny. I was just about to put this on your thread.

TOOTHFAIRY are guilty of misselling right away. Their website boasts this - we welcome all customers, regardless of your situation, employment status or income level. You’ll find that we don’t try to tie you in for years, sell you extra products or charge any hidden fees. A letter offering repayment of the original loan of £400 without interest on the way! ..as they now want £2400! we must make it not worth their while lending. A huge thank you for this invaluable guide:)

a worth while piece of work. will be donating, def worth it.

a worth while piece of work. will be donating, def worth it.

Just to make sure credit goes where it's due, this was produced by Govan Law Centre.

Yes, it's a brilliantly written helpful booklet. So much in it to help people fight back.

What about mis-selling on the basis that they seek to improve credit rating but they infact damage credit ratings due to being payday lenders....is there a guide or advice anywhere for that?

That had occurred to me...but....first they would need someone to take them to court for a test case presumably...

e.g. credit rating score of 1 out of 5...and just because you are working they give you a loan. So much for them doing proper credit checks! Martin Lewis should be the one to know if they can be done for mis-selling they would all be guilty and that would be the end of them...

I had an e-mail sometime telling me that having one from a company beginning in V I can't remember now but saying that if I took it that it would improve my credit rating which I thought was great for a small price.....surely if that's the basis in which someone took a loan out and it isn't the case, especially given that the lender has the resource and knowledge of the industry to know this isn't the case then they've mis-sold the loan??

I might be being a bit too simple here......

What about mis-selling on the basis that they seek to improve credit rating but they infact damage credit ratings due to being payday lenders....is there a guide or advice anywhere for that?

Do you mean even if you pay the loan off,the fact that the loan came from a payday lender can harm your credit rating.

And maybe other firms take the view-Bit dodgy this fellow he needed a payday loan.

I read somewhere people were turned down for a mortgage due to the fact they had taken out a payday loan in the past.

Found it.

http://uk.finance.yahoo.com/news/payday-loans-could-cost-mortgage-141535900.html

Perhaps a wise one will come on and answer your question.

Very interesting.

If so it certainly needs looking into

And may make some think hard about taking these loans.

Payday loans could harm your future.

When life takes a turn for the better.

Yeah everything repaid on time all hunky dorey.

Absolutely firms must take that view that its a sign of desperation and I've found articles that suggest pre 2012 payday lenders were classed as loans all the same so creditors wouldn't really know the difference but then things changed and CRA's classed them differently so it would, as you've said have that impact as a negative (with a slight twist of sugar that you've repaid on time).

Yet they continued to advertise that they would improve your credit file.....surely thats inaccurate leading consumers to take a decision that they wouldn't have otherwise taken.....

Following it through...mis-selling normally applies to ppi - in which cases people got all their ppi money back. mis-selling of loans?...would everyone get all their interest charges back? Lovely thought that, everyone would suddenly become wealthy, and the economy would improve immediately as more cash can be spent properly...

Again I might be simple but it depends the damage the individual suffered and the nature of the decision taken so I'd say something re credit file either remove entry or compensate for incorrect advice.....surely they're regulated by COBS which provides that they treat consumers fairly? Could it be a breach of contract that they make misleading statements in their adds which led you to take a decision?

Again I might be simple but it depends the damage the individual suffered and the nature of the decision taken so I'd say something re credit file either remove entry or compensate for incorrect advice.....surely they're regulated by COBS which provides that they treat consumers fairly? Could it be a breach of contract that they make misleading statements in their adds which led you to take a decision?

Hi orfoster Both your posts make perfect sense to me.

This part of the payday loan problem i had really not looked at before,but will now.

I had not even heard of COBS before.

Is this it. http://fshandbook.info/FS/html/handbook/COBS

Interesting thoughts from many

Let us find out.

Warnings should be issued in their shops.This loan could cost you your future dream,a house.Many things

Many credit agencies seem to group payday loans,if you have had them in a separate group on your credit file.

Someone comes along when you want further credit,perhaps in the future,sees this toxic product,goes into shock,and declines.

It will have possibly been covered before but thanks orfoster.

Let us get to the bottom of this.

What can be done,re the thought about you sold me this loan,no warnings were given about possible damage to my credit file,so you missold me this loan i do not know.

Or the breach of contract thought.And misleading statements.

But someone does,somewhere.

And will be along soon i bet.

My simple look at things.

Ooh, tawnyowl, you haven't heard of COBs or BCOBs before.. please have a look a the articles linked in my signature - highlighted in GREEN.

No 5 is the COBs link

Oh.Thank goodness.A wise one has appeared.This is what i call the helpers the site team .

Helped me out many times in the past.

Thankyou for pointing out the links.

I will immediately (had to look that up, spelling and old age) take to studying..

Your links on your signature CitizenB are about to warm up.

Orfosters posts seem interesting to me.

Raises a few thoughts.The few i have anyway.Most these days are about the taming of the predators,the payday lenders.And their targeted lending.

 

Oh.Thank goodness.A wise one has appeared.

thank you for your kind words.

I have been linking PDL health warnings on another thread this morning. I would very much like to see as many examples as possible of any PDL advising /advertising that by taking out a PDL and repaying it on time, would help someone's credit rating.

Good work.Do you think a thread should be started,and get peoples reactions to the credit file problems.Would you start one CitizenB

There is something of the night about it all.

How many people know that payday loans may harm their credit file.Or may affect future purchases

Or the thoughts of misselling,breach of contract.

It may have been done in the past, but faded in the mists of time.

But it could be a big problem.For many

Got me going last night and this morning.

And that takes some doing.

Yes, I can sort that out, tawnyowl.

BRB

Here you go tawnyowl. If you think I can add something to the first post , then please say

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

Hi any help from anyone would be great.Mr lender and CFO are ignoring my repayment plan ? Also they processed my loan without proper credit checks

Hi, hope this will be helpful. On this occasion, for what it's worth try to get them on the phone. If they are a "responsible" company they will agree to a plan. the O.F.T. says they must not ignore that kind of request. If you go ahead (I know from bad experience) and just decide to pay e.g. £10 a month into their s/c and account number, using your cust ref. number as a reference; unless it is agreed you run the risk of getting a default on your credit rating. You can check it yourself anytime, it's free for life- called Noddle. If they won't speak to you, and ultimately you get a default, contact in advance of that the O.F.T. explain everything to them. Then if the worst happens, you can get back to the O.F.T. and ask to get it removed.