End Legalised Loan Sharks.

[Tawnyowl]

New Which? research exposes payday loan failings Struggling consumers in payday loan debt trap

 

http://www.which.co.uk/news/2012/05/new-which-research-exposes-payday-loan-failings-286258/

[Tawnyowl]

#SaveBianca! Ask Your MP to help end legal loan sharking on Tuesday 22 May 2012!

 

Hello!

The vote for proposals to tackle legal loan sharking will take place on Tuesday 22 May 2012. Please ask your MP to vote for amendment 40 of the Financial Services Bill and help give British consumers the same protection from payday loan companies other consumers across the world enjoy!

 

In a House of Commons debate in April the Government Minister responsible for this bill Mark Hoban agreed the Financial Conduct Authority should be able to regulate the cost of the credit, but refused to back this amendment which would explicitly authorise the FCA to do this. They plan to tell their MPs to vote against it and so stop this proposal becoming law.

 

Independent consumer legal advisers are clear – without explicit authority to do this the regulator will struggle to use new powers as these companies will contest any such action in the courts. The Office of Fair Trading has also admitted the involvement of ‘expensive lawyers’ in cases has influenced their ability to act, highlighting the need to address this problem.

 

This amendment is a key tool in the fight to tackle legal loan sharking - Fines will only have a limited impact on an industry which is making millions lending money at astronomical rates of interest to British families. On the otherhand, capping their charges could send a strong signal about what costs of credit will be tolerated in the UK. Its the first step towards securing industry wide caps on the total costs of credit, and so giving British consumers the same protection from these loans that others around the world enjoy.

Below is a sample text to use to email your MP to ask them to vote for this amendment - you can find the contact details of your MP here. You can also help by tweeting about the campaign using the #savebianca hashtag in reference to the recent Eastenders storyline on this subject!

Help me make a difference to the families in our communities struggling financially because of these companies by taking action- let's together end legal loan sharking in Britain!

 

 

Stella Creasy

Labour and Co-operative MP for Walthamstow

p.s. Please also

share this email with your family and friends to ask them to defy the Government and support this amendment on Tuesday!

Suggested text to send to your local MP

Dear XXX

As one of your constituents I'd like to ask you to vote on Tuesday 22 May for an amendment 40 to Clause 22 of the Financial Services Bill to help tackle legal loan sharking.

In an industry making so much money from lending to people at excessive rates of interest, fines will do little to curb their behaviour-

one firm posted a pre-tax profit of £162m last year, and another paid its chief executive £1.6m. On the otherhand, giving the new regulator explicit powers to cap the charges they can set would send a strong message to this industry about the costs for loans that should be considered acceptable and the way they can treat British consumers. It could make a real difference to the millions across our country now struggling financially who are borrowing from these companies to make ends meet by encouraging firms to reduce their charges.

Ministers claim they support the spirit of the amendment but refuse to vote for it- legal advisors are clear that without explicit powers to act, these companies will be able to challenge action in the courts. Don't let the fight against legal loan sharking become a fee generating opportunity for lawyers- please vote for this amendment on Tuesday and join the fight to end legal loan sharking in Britain.

I look forward to reading that you voted for this amendment,

[Tawnyowl]

Perhaps a few of you would like to join this conversation on Which and tell it as you see it.

What you feel about paydayloans and the troubles they cause.Or just put your view across.

I feel maybe some of your experiences, knowledge,tell it as it is is needed.

Agree or disagree it is up to you.

I am sure they would go down well.

http://conversation.which.co.uk/money/payday-loans-websites-debt-trap-lenders/

 

The rise of payday loans replaces one debt bubble with another, nastier one

 

 

http://www.guardian.co.uk/commentisfree/2012/may/11/wonga-payday-loans-banks-deborah-orr

What sort of bank fails to support good businesses in difficult times? A bad one,

 

Can there be a more damning indictment of the banking sector's failure to do its job than this? What kind of bank supports a viable business so inadequately, at such a difficult time, that the business is compelled to go to a different lender, to take out and pay off the same loans over the same cycles, but at a higher cost? A bad bank.

 

Give small businesses the power to sue banks that refuse to give them loans that prove viable.

 

Unbelievably, the government agrees that the proposed Financial Conduct Authority (FCA) should be allowed to cap the cost of credit – in theory – but refuses to give it explicit power to do so. This means that any attempts to curb interest rates by the FCA would be subject to expensive and possibly fruitless legal challenge.

 

Mind you if anyone reading this would maybe like to change this opinion send this to your local MP

Below is a sample text to use to email your MP to ask them to vote for this amendment - you can find the contact details of your MP here

Suggested text to send to your local MP

Dear XXX

As one of your constituents I'd like to ask you to vote on Tuesday 22 May for an amendment 40 to Clause 22 of the Financial Services Bill to help tackle legal loan sharking.

In an industry making so much money from lending to people at excessive rates of interest, fines will do little to curb their behaviour-

one firm posted a pre-tax profit of £162m last year, and another paid its chief executive £1.6m. On the otherhand, giving the new regulator explicit powers to cap the charges they can set would send a strong message to this industry about the costs for loans that should be considered acceptable and the way they can treat British consumers. It could make a real difference to the millions across our country now struggling financially who are borrowing from these companies to make ends meet by encouraging firms to reduce their charges.

Ministers claim they support the spirit of the amendment but refuse to vote for it- legal advisors are clear that without explicit powers to act, these companies will be able to challenge action in the courts. Don't let the fight against legal loan sharking become a fee generating opportunity for lawyers- please vote for this amendment on Tuesday and join the fight to end legal loan sharking in Britain.

I look forward to reading that you voted for this amendment,

Edited May 19, 2012 by tawnyowl

[sillygirl1]

I voted to ban PDLs altogether which has the most votes so far.

 

Wonga's 'great idea' is being seen as the capitalistic threat it really is - hopefully this lot won't have any 'takers'. Wonder if one of the takers would be a fellow PDL company struggling because its customers cannot repay - that would be brilliantly ironic!

[Tawnyowl]

Nice one Sillygirl1,I was hoping you might have your say.

Thanks for updating on the vote.

Yes a struggling PDL company borrowing of wronga would be ironic,hilarious.

The letter,

Dear Wronga,

As a fellow shark of the highest order i wonder if you could see your way to lending

me a few million pound.I have been trading over three years now and turnover is over 20k a month.

My cash flow problem was created by the 2 million people who borrowed of

me last year and have told me to go stxxx myself, and had the audacity to call

me a legalloanshark.

I have unfortunately had to hock the yacht moored of the south of France.Next to yours with the shark emblem.

Which is next to the Beecroft donation to PDL companies and friends in high places foundation for legal loan sharks companies yacht.

The 3 rollers have gone to log book loaners and the rest of my valuables to, we give little cash, converters.

I blame Stella Creasy and those CAGers for some of my problems.They are wising up to us and our strategy

to empty the pockets of our targeted victims.

But i am sure as you know our friends in high places will help us out.

A few million buys many friends as you know.

Money for influence,nod nod wink wink.

So just a temporary problem.

Oh by the way could you make it cash.

Cheers from your friend the fellow legalloanshark

Sorry about the note but the computers are temporary unavailable due

to a rather large man with a huge gold chain,no neck, built like brick

outhouse,teeth like a piranna knocking on the door,called a baliff i believe and took them.

Temporary of course.

In it together to the end.

Rollovers for ever in double dip land.

I hope to hear from shark island headquarters soon.

Sincerely your friend and fellow legalloanshark

Sharticus PDL company REGISTURD. offshore Cayman Islands

 

Thanks sillygirl1 for that thought it gave me a good laugh.Which is unusual for me.

May i just say the above letter is not meant to offend or stress anyone,even the legal loan sharks.

Its just lets a bit of light heartedness in a world of serious issues.

 

Now this afternoon Blackpool football club play West Ham at Wembley in the championship final.

I will be listening on the radio because Wronga sponsors them.BlXXXY puppets getting everywhere.

May the best team win.

Ah well another 200 saved.

Am i the only football fan who saves money by not watching the team live because of the sponsor.

Though i am feeling some regrets at the moment

Have i made the right decision.mmm

Never mind this tune cheers me up.

It could be the best trip i haven't been on.

Edited May 19, 2012 by tawnyowl

[sillygirl1]

Excellent letter, I wonder what Wonga's reaction would be! I won't put one here just incase they complain and I get put on moderation!

 

This whole PDL scene is getting far more bad press than good, even the Which article seemed to pick up on the fact that many companies don't list what happens if you can't repay, I fully believe the likes of Minicredit need to state ON THE FRONT PAGE before you click to fill in your details their 'collections process' including the 5 day bailiff visit countdown email/text, the 'this is what we are actually charging you ie x amount on day x of your default, x amount on day x, xxx amount for debt collecting file fee, xxx amount for a debt collector to come to your doorstep etc etc.

 

If all PDL companies were forced to show a page like that before people accepted less people would become trapped in the debt cycle.

 

Again, if more people stayed on the forum to give advice to PDL victims rather than vanish and show up again 8 months later that would help get the word round too.

 

I stayed on so I would not get sucked back into their trap and have had my 'revenge' so to speak on the system by informing people they do have rights and remedies and should take action against these predatory lenders.

[Tawnyowl]

Credit union set up in Leatherhead to help beat debt and loan sharks

 

http://www.thisissurreytoday.co.uk/Credit-union-set-Leatherhead-help-beat-debt-loan/story-15978736-detail/story.html

Anyone who lives or works in Surrey is eligible to join SurreySave. Link below

http://www.surreysave.co.uk/

Anyone who is credit union curious link below.Anywhere in the UK

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

[Tawnyowl]

Help people live the dream.Make tomorrow the best trip your mp has ever been on email your mp http://ymlp.com/zGC8TI

Tawnyowl, done for now.Still plenty of time to let your MP know you would like them to support.

Edited May 21, 2012 by tawnyowl

[Tawnyowl]

We were writing about Mr Beecroft in 2011.Here is a bit of it.

2nd Nov 2011

David Cameron faced a furious Liberal Democrat backlash last night after a private Downing Street report by an influential Tory donor called for firms to be allowed to sack poorly performing staff without explanation.

The controversial call came from a multi-millionaire venture capitalist, Adrian Beecroft, whose interests include an online company offering payday loans at huge rates of interest.

Mr Beecroft, who has given more than £530,000 to the Tories under Mr Cameron, was asked by him to examine how employment law could be overhauled to boost economic growth.

To Lib Dem anger and surprise, Mr Beecroft has recommended ditching unfair dismissal rules. Unions were also furious, further souring the atmosphere as ministers try to avert widespread strikes over pension reforms.

Last night Tory sources distanced themselves from the report, saying its findings were unlikely to "see the light of day".

 

Yesterday.

Well it seems it has seen the light of day.

If this goes ahead many i feel will feel like this Detroit car worker.

And suffer similar things.Here.In the UK.

 

What are the odds on the finance bill amendment vote being won tomorrow.

I can only hope.On rebellion by some Mps.

Or some MPs when ordered to vote against the amendment abstaining.

Lets hope for the right result and see----my future hopeful headline.

 

Researchers discover big drops in legaloansharking population in our towns,cities,villages.

 

 

 

Tawnyowl going to lie in a darkened room for a couple of weeks.

Edited May 22, 2012 by tawnyowl

[Tawnyowl]

Amendment defeated 225 to 266 majority of 41. Analysis to follow

Looks like a lot of abstentions as only 41 majority- now will government act as own benches clearly angry they won't

Tory and Lib Dem MPs voting in favour of 4000% APR loans tell you all you need to know about the coalition.

 

A interesting article i missed earlier in the day

http://www.spectator.co.uk/coffeehouse/7861868/making-the-loan-companies-pay.thtml

 

As far as i know three Tory Mps -Zac Goldsmith MP for Richmond Park and North Kingston

and Mark Reckless MP for Rochester and Strood

and Philip Holllowbone MP for Kettering voted for the amendment with Labour but no Lib Dems-strange.

As well as a good few abstaining from the vote.

 

Enough for now hope to give a clearer picture and next moves in the battle against the legaloansharks tomorrow.

Edited May 22, 2012 by tawnyowl

[renegadeimp]

Dont forget mr beecroft also wants to bring back child labour.

[caro]

Oh dear. The OFT aren't very happy with Wonga. http://www.consumeractiongroup.co.uk/forum/showthread.php?351131-OFT-requires-Wonga-to-ensure-improved-debt-collection-practices

[Tawnyowl]

A interesting article Caro.

Without having appropriate justification the letters or emails suggested that customers may have committed fraud and that Wonga would consider contacting the police if customers did not act as Wonga requested.

Says it all about the legalloansharks and their real thoughts.

They want to be careful or their puppets will be going up in smoke.

David Fisher, OFT Director of Consumer Credit, said:

 

'We have acted to ensure that Wonga does not behave this way again. I would like to make it clear to businesses that they must not adopt aggressive or misleading practices with their customers'.

 

I must mention Stella Creasy MP for Walthamstow who keeps taking the fight for fairness to the legalloansharks.

The people of Walthamstow are lucky to have a MP who battles so tirelessly for everyone on this issue and other issues locally.

A busy MP who will not give in.

 

I am absolutely gutted with last nights vote.

Words can not explain how i feel.

So for now i will not say much apart from i believe the fight is now going to the lords.

I will put some info from the newspapers when i can bear to look.

I can only hope credit unions power up,link up and join the post office network to make credit unions easily available to millions more people.

Speed and ease of access is so important this day and age.

Internet access.

I like the idea of credit unions in community centres.

Maybe put the credit unions in shopping centres and all schools.Maybe give leaflets to schools for the kids to take to their parents.All workplaces as well.

To get the message across without to much expense.

I am a great fan of credit unions but i feel they need to up their advertising.Have you ever had a leaflet through your door telling you about the benefits of joining your local credit union.

Leaflets put through every door in the land.On one side details of their local credit ubion.On the other side the application to become a member.Making the process as simple as possible.It has to have instant appeal.That is the way of leaflets.

A few credit unions are even offering payday loans.At fair rates.

In America there was even a bank transfer day where people sick of their banks transferred to credit unions resulting in a massive amount of new members.

The loan rates on credit union loans can not be beaten.

Maybe the credit unions day is coming.

I hope so

Last night a amendment to the finance bill was defeated allowing paydayloan companies and the high credit market to carry on ripping people off regardless.It would have given real power to the new FCA without expensive legal challenges holding decisions up for ages.

Credit unions should take advantage of this and go for it.

It just needs the message to be heard far and wide.

Just in case anyone wonders what does Tawnyowl jknow about debt

I have been in debt and know the pain when you have nothing.Nothing to eat and no place to turn to.

I have been homeless twice,,it is not very nice ,repossessed,,bankrupt,charging orders ccjs ,the lot

The wondering who is that at the door,on the telephone.Watching out for the baliff van

And perhaps the worst of all the shear stress of it all.The feeling of you are alone.By yourself.Not knowing what to do

and where to turn to.You can be a tough hard man but debt overcomes you in time.

And all it takes is a small change in income,sickness,any number of reasons before you into the slow slide into hell.

Came on here in a right mess and help and advice was given.

In fact i feel perhaps the CAG and some of the members possibly. saved mu life.

I came near to it at times.

So thanks,you know who you are.

And everything is ok now.

Sorry if there are spelling mistakes i have lost my poundland specks.And can hardly see a thing,Age related.

Edited May 24, 2012 by tawnyowl

[sillygirl1]

The vote was a cop out, as was the OFT 'warning' on Wonga (or can we now call them 'Wronga'. We know from this forum this behaviour continues - I do wish these regulators would not be hoodwinked by these sharks.

 

I'm going to approach the Leatherhead Credit Union and see if they will accept me, should do as I am not far from Leatherhead and will report back. Get in early now to have some savings for Xmas!

[Tawnyowl]

Hi Sillygirl1

Why not Wonga has been proved Wronga again.

Yes credit union membership.

Holiday savings schemes,Christmas clubs,loans at fair rates.

Just takes that initial step to fairness.

I can not believe so many MPs voted against.

Many strings seem to have been pulled

But getting closer.

To the LORDS.

Will update when recovered from the shock.

And yes Sillygirl1 it will be interesting to have a report on your experiences of opening a credit union account.I look forward to it.

Edited May 23, 2012 by tawnyowl

[Tawnyowl]

Stella vows to continue campaign for credit caps as Government scuppers opportunity to protect public from legal loan sharks

 

 

Yesterday evening Stella was disappointed as yet again the Government rejected Labour attempts to protect consumers from the problems caused by payday lending.

Stella moved a cross party amendment to the Financial Services Bill which would have allowed the regulator to cap the cost of credit if a financial product was judged to cause ‘consumer detriment’. Despite the support of several Conservative MPs, the Government whipped its MPs to reject the amendment.

The Government’s rejection of this reform came on the same day as new research was published which showed that 98% of MPs and 93% of the public believe there is a problem with payday lending. 66% of MPs and 65% of the public also support a cap on the total cost of credit.

Stella said:

‘Residents of Walthamstow are suffering in our current economic climate as the cost of living rises, and wage freezes and unemployment hit their household incomes. I know from talking to them how they are turning to credit from these companies to make ends meet. They lend money at extortionate rates of interest that can cause a cycle of debt for many, with one in three payday loans being taken out to pay off other payday loans. This amendment to the Financial Services Bill would have sent a message to the industry that their worst excesses would no longer be tolerated. Despite saying they support action, too many Government MPs didn’t have the guts to stand up for the people they represent. By voting against this proposal, this Government has shown just how out of touch it is with the rest of the country. The research is clear – across Britain everyone else overwhelmingly backs our proposals to take action to tackle the debts that payday lending can cause and to give UK consumers the same protection others round the world enjoy. We will now take the fight for this proposal to the House of Lords as this isn’t over – residents in Walthamstow should know that whilst the Government may sit on its hands, we will continue to campaign for an end to legal loan sharking in Britain.’

 

Notes

1. Stella moved and voted in favour of Amendment 40 to the Financial Services Bill. The outcome of this vote was 225 to 266 with over 20 Government MPs choosing to abstain on the matter or vote for it.

2. Amendment 40 stated: ‘The FCA [Financial Conduct Authority – the new regulator] may make rules or apply a sanction to authorised persons who offer credit on terms that the FCA judge to cause consumer detriment. This may include rules that determine a maximum total cost for consumers of a product and determine the maximum duration of a supply of a product or service to an individual consumer.’

3. Amendment 40 was co-signed by ten MPs from five parties, including three Conservative MPs. They were Stella Creasy (Labour, Walthamstow), Philip Hollobone (Conservative, Kettering), Mark Durkan (SDLP, Foyle), Sir Peter Bottomley (Conservative, Worthing West), Yvonne Fovargue (Labour, Makerfield), Caroline Lucas (Green, Brighton Pavilion), Neil Parish (Conservative, Tiverton & Honiton), Joan Ruddock (Labour, Lewisham Deptford), Jenny Chapman (Labour, Darlington), Jonathan Edwards (Plaid Cymru, Carmarthen East and Dinefwr), Tony Lloyd (Labour, Manchester Central). Labour’s frontbench spokesperson Chris Leslie MP also spoke in favour of the amendment.

4. Research commissioned by R3, the insolvency trade representative, and carried out by Comres on payday lending was published yesterday. It showed that 98% of MPs and 93% of the public believe there is a problem with payday lending. 66% of MPs and 65% of the public support a cap on the total cost of credit. See the full research here: http://www.comres.co.uk/poll/679/payday-loans-survey.htm

5. For more information see Stella’s guide to the campaign.

[Tawnyowl]

Sorry duplicate post.

Edited May 23, 2012 by tawnyowl

[renegadeimp]

Looking at the curernt government it could be one of two things.

 

It got rejected because it was proposed by the labour party

 

It got rejected because too many MP's have their hands in the industry. Huge election donations to the Conservative party from an owner of a chain of PDL's for example. Mr Beecroft who donated half a million GBP to the conservatives was the said owner, and is now best friends with David Cameron. So much in fact that he is now deemed an "Influential venture Capitalist", and Mr Cameron even authorised him to advise on revamping Employment legislation.

Such things as making it very easy to fire employees with little to no reason, and even stating that he wants regulations relaxed or removed concerning child labour where top of his agenda.

[sillygirl1]

Anoter unpleasant outcome for an unpleasant industry - there is also this which might affect the way the PDL companies act in future

 

http://www.credittoday.co.uk/article/14034/online-news/free-webinar-on-enforcing-ccjs-

 

I won't be about on the day the webinar is held, I will be in Ireland... hopefully somebody from this site can listen in and counter any inaccuracies in their little venture.

[Tawnyowl]

George Galloway commenting on the vote.

 

‘I can understand why the millionaire Tories and posh boys voted to protect their friends rights to rip off the poor,’ Galloway continued. ‘To his everlasting shame Ward joined them in this usury. It won’t be forgotten. The role of an MP is to safeguard the public not to allow them to become financial shark fodde

http://www.votegeorgegalloway.com/2012/05/galloway-accuses-ward-of-backing-loan.html#more

 

And a video about a credit union in Wales and kinds of asks the question do we know enough about our credit unions and what they offer.

http://www.guardian.co.uk/commentisfree/video/2012/may/03/credit-union-rhondda-valley-video

 

And http://www.independent.co.uk/money/loans-credit/credit-unions-urged-to-modernise-7734368.html

This is why we believe linking credit unions to our Post Office network could be a perfect match and help ensure the continuation of the vital community resource which our Post Offices provide."

Linking credit unions to the post office network.

Brilliant,i will try to find out how this is going..Unless someone can tell me.Someone in the know..Does anyone know.how far there is to go before this becomes live.

It would be so easy.Pop into the PO become a member.Applications in all post offices.Internet access,withdrawels,apppliations for loans,deposits Perhaps a debit card..Promotion,advertising literature.,All in the postoffice.

Soon please.

Tawnyowl,off now to work,,then to the poundland shop to get some glasses.Can hardly see what i am typing.

Mind you i have just heard a 99p land has opened in town.

Roll on the entrepreneur who brings out a 50p land.shop.

Edited May 24, 2012 by tawnyowl

[Tawnyowl]

Self regulation will do nothing to make legal loan sharks an endangered species says MP

 

 

 

 

Labour MP Stella Creasy today expressed her disappointment at the Government’s repeated failure to act tackle the problems caused by high cost credit to British consumers. Speaking following the Government’s announcement today that it wanted the industry to ‘self-regulate’ Stella said:

‘It is disappointing that despite the overwhelming public support for action the Government still refuses to act. Anyone who has seen the way these companies are targeting UK consumers will know that asking them to police themselves is like Red Riding Hood asking the wolf to babysit Grandma!

We know self regulation is of limited value in an industry with so many different companies and growing so rapidly. Indeed they tried to claim before they could be trusted to self regulate last year- but still the levels of debt and difficulty consumers experience with these companies are rising every day.

The little progress this code represents, if the lenders stick to it, on continuous payments, rollovers and consumer information will do little to counter the root causes of the difficulties consumers experience in this industry in the UK. Above all, with one in three payday loans taken out to pay off other payday loans and damning independent reports of the widespread malpractice within the industry from Which?, a voluntary code will do little to give consumers the confidence this Government really understands the way in which these firms are operating here in Britain.

As the evidence mounts up of the problems caused by this industry my question is how many more people suffering will it take before the Government finally gets a grip? Whilst they yet again listen to the industry, we will continue to listen to the people of Britain and campaign for caps on the costs of credit to give them the same protection from this industry that others around the world enjoy. ’

 

Ends.

1. Stella was responding to the announcement by the Department for Business, Innovation and Skills of their support for self regulation by the Payday loan industry. Full details can be found here.

2. On 14 July 2011 the Consumer Finance Association launched its own code – reports of which can be found here.

3. On Tuesday 22 May Stella moved and voted in favour of Amendment 40 to the Financial Services Bill. The outcome of this vote was 225 to 266 with over 20 Government MPs choosing to abstain on the matter or vote for it. This would have given the new Financial Conduct Authority the regulatory powers to cap the costs of credit if firms were found to have provided products that caused consumer detriment.

4. Research commissioned by R3, the insolvency trade representative, and carried out by Comres on payday lending was published yesterday. It showed that 98% of MPs and 93% of the public believe there is a problem with payday lending. 66% of MPs and 65% of the public support a cap on the total cost of credit. See the full research here:

5. Research published by Consumer organisation Which? On Friday 18 May 2012 Into payday lending customers showed61% said that they used the money for essentials – paying bills and buying household essentials like food and that 33% experienced financial problems as a result of taking out a payday loan. This figure is higher for both those with an average annual household income of less than £30,000 (36%) and respondents who used an online payday lender (34%). Of those who experienced financial problems, 38% were unable to pay the full amount back on the due date, 70% rolled over their loan and 45% were hit with unexpected charges. 57% of those who took out a loan then received communications to suggest they take out further loans and 46% were asked if they wanted to rollover their loan.

[Tawnyowl]

http://news.bis.gov.uk/Press-Releases/Better-help-for-consumers-in-financial-difficulty-from-payday-loans-67a77.aspx

 

Asking them to police themselves is like Red Riding Hood asking the wolf to babysit Grandma!

 

What do you think.

 

Surely caps on the costs of credit is not to much to ask to give the people the same protection from this industry that others around the world enjoy. ’

 

Is it the power of the lenders or massive donations that come from people like Adrian Beecroft who writes reports thinking the unthinkable gives them to Cameron who pots them in the vaults to resurface later and acted upon.On health,employment rights etc

 

Is there really such a thing as money for influence.

 

What is going on.

 

Lib Dem sources called him an "ideological" figure whose conclusions they would not support. One said: "He is a private individual who has produced a report not based on any evidence."

 

There must be more to it all.

 

The defeat on the vote the other day t won’t be forgotten. The role of an MP is to safeguard the public not to allow them to become financial shark fodder

 

The aftermath of these legalloansharks products can be seen all over these forums and elsewhere

 

What happened..Where did it go wrong.

I am still finding it hard to take.

As someone once said-There is something of the night about this.

The battle may be lost but the war goes on.

Till the rights of people not to be ripped off is won.

It is surely their right.

Edited May 25, 2012 by tawnyowl

[sillygirl1]

The sharks will one day find that they HAVE to conform to their own code or be closed down. I did see another report here

 

http://www.credittoday.co.uk/article/14042/online-news/oft-licence-powers-could-be-strengthened

 

that the OFT are going to get more powers, hopefully if that happens they WILL act swiftly and close these predatory PDL companies down.

 

The companies tv adverts should be banned as they are as toxic to a family environment as the smokers allegedly are, and they should only EVER be allowed one trading name per licence at a time. I've seen companies with up to 30 'trading names' registered to them, this needs to be stopped as well.

 

If any PDL misbehaves and takes its customers to court with hugely inflated claims (I've seen £150 turned into £1700 for a court claim) they need a heavy fine, and 're-educating' into the reason they actually charge the ultra high interest rates, do not do credit checks and deliberately target the disadvantaged.

[Tawnyowl]

Hi Sillygirl1.

Thanks for the link.I will have a look at it.

And keep up your good work on the forums.

I enjoy reading the help you and others give people.

And how they work things out.

I know the relief when a debt problem is solved.

And how enjoyable it is to finally get a good nights sleep after all the anguish and stress.

After spending hours, days,months,years, worrying.

And the feeling of being alone.

Thank goodness for the CAG and others like them

 

Amazing.Leaves you speechless.

What happened,were they all whipped into submission.

 

Flip flopping Shapps votes against capping Wonga-style interest rates

From Political Scrapbook.

 

 

 

 

Grant Shapps voted against the capping of payday loan interest rates this week – despite having written a report slamming extortionate APRs just three years ago.

In his report entitled “Pay-Day for Loan Sharks”, written when he was shadow housing minister, he set out his opposition to the extortionate interest rates charged by legal loan sharks. The publicity-seeking report quotes him directly:

“… we think it is obscene that anyone should end up paying 10,000% APR, particularly when the evidence suggests that these loans are targeted at some of the most vulnerable members of our society.”

Yet when Stella Creasy’s amendment on the issue came to a vote on Tuesday, Shapps’ name was clearly listed amongst the noes, alongside several of his frontbench colleagues. The irony is almost palpable, given that Shapps’ report said:

“The government has dithered and delayed in dealing with the important factors at the heart of this issue ”

 

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.

 

Edited May 25, 2012 by tawnyowl

[Tawnyowl]

As some may know i am a great fan of credit unions.So i thought i would put this article on about them.

The best alternative to banks and legalloansharks.

ABCUL has welcomed research from Consumer Focus which shows that credit union access through the Post Office network would encourage many more people to use their services.

Would you join a credit union if they were easier to get to.Post offices must be the answer.

I still have not found out when this will become a reality.

Mind you i have not read the full report.

http://www.abcul.org/media-and-research/news/view/243

 

The full report for those with some time to spare.

http://www.consumerfocus.org.uk/files/2012/05/Credit-where-credits-due.pdf

Billy Hayes, General Secretary of the Communication Workers Union also supported the plans, saying "Bringing credit unions and the Post Office together makes great business sense and would build on the strong trust of each institution."

 

And some good news from this credit union in Wales.

http://www.abcul.org/media-and-research/news/view/242

"We are the fastest growing credit union in Wales with 5,500 members after seven years, and number one in the UK for school saving with 34 schools participating. We are proud to be the number one in Wales for growth." "We are getting a lot of children to join and they are going home and encouraging their parents, which is what we wanted."

 

And news of credit unions in Scotland and Wales.

http://www.politics.co.uk/opinion-formers/abcul/credit-unions-in-scotland-and-wales

 

Expansion Report for credit unions welcomed

 

- http://www.abcul.org/media-and-research/news/view/240

A loan of £300, repaid weekly over 52 weeks from a leading home credit provider would cost £246 in interest. A similar loan from a credit union, charged at the current maximum interest rate of 2% a month on the reducing balance would cost no more than £40 in interest, representing a saving to the consumer of over £200.

 

If the maximum interest rate for credit unions were to be raised to 3% a month on the reducing balance, a similar loan would cost less than £60 in interest.

And if the banks keep behaving badly,lets have a bank transfer day and move to the credit unions.As over 1000000

people did in America last year.On Bonfire night November the 5th.Now that would create some fireworks.

 

Why delay,join today.

Are you credit union curious.

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

 

Your Money: Help for payday loan borrowers

Declan Curry looks at new pledges from payday loan companies to help borrowers who are in trouble.

http://www.bbc.co.uk/news/business-18218296

 

Should there be a cap on payday loans?

http://news.bbc.co.uk/today/hi/today/newsid_9722000/9722692.stm

Recorded before the vote.

Do not forget John represents the Money Shop.

And is CEO of the CFA.

The Consumer Finance Association (CFA) is a trade association which represents the interests of businesses offering short term, unsecured personal loans.

Tawnyowl trying to be unbiassed.Trying.

These forums and elsewhere tell a different story to his.

1 in 3 payday loans are used to pay off another payday loan.

Says a lot.

 

 

 

How the Major Banks Finance Payday Lending Companies

 

In America.But interesting.But ordinary people and business do not seem to get the red carpet treatment anymore.

 

http://showdowninamerica.org/research/payday-lending

Seems relevant as the paydaylenders have flooded our markets now.

 

And let's not forget Mike Dailly's think piece.

http://www.govanlc.com/MissellingCC.pdf

He or she who dares,may win.

 

 

Payday lenders and pawn shops change the face of Britain's high streets

 

As the economy stutters, payday loan shops and pawnbrokers are reaping the rewards

 

 

 

Does your high street have more legalloansharks than Walthamstows high street.

If it can give it a run for its money let the Guardian know.And us of course.

Is your high street turning toxic.

Can your towns high street be crowned the capital of legalloansharks.

http://www.guardian.co.uk/money/2012/may/26/payday-lenders-pawnbrokers-britains-high-streets?newsfeed=true

AS BAD AS IT GETS?

 

We would like your help to establish whether Chatham and Walthamstow really do have the dubious honour of having the streets with the most payday loan shops and pawnbrokers. If you know a road that you think gives them a run for their money please let us know. We will need the name of the street, town and a list of the relevant shops. Please email them to [email protected]. When we have located the UK's payday loan shop capital we will take a closer look at what is driving the proliferation of shops there and how it is affecting the town.

Edited May 27, 2012 by tawnyowl