End Legalised Loan Sharks.

[sillygirl1]

Email duly sent, also directing them to the site and giving my site name. I also mentioned the Cash Converters type stores that are taking over the lower end of my town, there is Cash Converters, Entertainment Exchange, Harvey & Thompson, another shop I can't remember the name of) all in a two minute walk, makes the lower end of town look very seedy.

 

I have mentioned that councils should not allow more shops to open up and that a cap of 24% per annum should be placed on these loans.

 

The whole industry is trying to 'legitimise' itself through advertising (IMHO) and it is, at the end of the day, adding to the misery and poverty of the country. I also think it helps fuel low level crime as people may steal things to sell to Cash Converters etc to help pay for essentials when their bank accounts have been raided - so far no real evidence of this other than the odd story via my nephews and nieces when one of their friends has been caught...

[Tawnyowl]

Just a few things being said and rumours about payday loans causing chaos and misery for many people.

Lords formal business started today at 2.30pm with Lords Qs & first question of 2012 is Lord Kennedy on real cost of payday loans.

 

Lord Kennedy asks if ad regs on payday loans are sufficient & Govt agrees to work with him on strengthening regs. Result.

 

Lots of defendants in housing possessions caught in horror penalty charges from payday loans. Please keep fighting!

[/url]

 

 

A recent report from Shelter warned that nearly seven million Brits are risking a "spiral of debt" through using credit cards, overdrafts and payday loans to pay off their rent or mortgage. Of those, almost one million have taken out high interest payday loans to meet housing costs in what Shelter deemed a "totally unsustainable" situation.

 

 

Story from todays Sun

Hidden dangers of payday loans WITH a Christmas debt hangover, many more people need quick cash – but beware.

 

 

http://epetitions.direct.gov.uk/petitions/20219 Time for action.

 

Bit of news from America

With its first chief now in place, the new Consumer Financial Protection Bureau will start enforcing rules aimed at reining in abusive mortgage servicers, student lenders and payday-loan companies

On Wednesday, President Obama used a congressional recess appointment, a move Republicans immediately denounced as an illegitimate usurpation of Congress‘ ability to determine whether it is in recess, to install Richard Cordray to lead the consumer finance watchdog. The bureau was created in July as part of the 2010 overhaul of the nation’s financial regulations.

The idea behind the new agency was to prevent financial companies from exploiting consumers. In the past, only banks were subject to examination by federal financial regulators. And until now, with no permanent director, the bureau had authority to supervise only big banks.

Mr. Cordray, a former Democratic attorney general of Ohio, said he would immediately “begin working to expand our program to non-banks, which is an area we haven’t been able to touch up until now.”

That change will likely start within weeks. Agency officials who are supervising big banks have already been trained to examine non-bank financial firms.

Edited January 11, 2012 by tawnyowl

[Tawnyowl]

Just when you think it can't get any worse- Wonga tells students to borrow from them rather than using student loans.I wont put a link on.

 

On their forum they are asking people if they think they are legal loan sharks 92% say yes.Does that mean its goodbye time.Have they got the message.

 

Stella Creasy comment-"The sad truth is that we should be shocked by Wonga but then nothing seems to shock when it comes to pay day loan providers".

 

Wonga rep ARP 4,500% student loan rep APR 5.3% - which do you think is more conducive to affordable lending?

Wonga target students with friendly advice: Take our 4000% loan

 

http://www.leftfootforward.org/2012/01/wonga-target-students-with-friendly-advice-take-our-4000-loan/

A good enough reason to sign the epetition

 

http://epetitions.direct.gov.uk/petitions/20219 Time for action.

 

STOP PRESS---WONGA CLIMB DOWN.

Pulled the advice to students.

If PR stunt urghhh -desperation.

 

http://www.workingforwalthamstow.org.uk/?p=1052 Article on the student loan offer that caused a twitterstorm.By Stella Creasy

After their webpage of financial advice to students provoked outrage, Wonga has caved in and deleted the advice from their website.

The advice suggested that students should consider it more financially prudent to borrow from Wonga (at 4214% APR) than it is to use a student loan (5.3%).

Showing a lack of self awareness the firm stated:

‘Student loans are usually far cheaper than your standard personal loan. But there can be a downside – you potentially end up borrowing more than you need, while a nasty debt accumulates for your gradation that could take years to repay.’

The NUS has pointed out that not only was the information irresponsible, it was also inaccurate. A student loan does not affect a borrower’s credit score, as Wonga suggested. Furthermore whilst it’s important to encourage students to budget and plan for their financial future, to do so in order to fund borrowing from Wonga with the extortionate rate of interest they charge cannot be considered responsible lending. Wonga claim to have a responsible lending policy and that they carefully screen applicants.

 

They have previously told me that most of their clients are young professionals suggesting those with regular incomes derived from work, rather than those with irregular incomes such as students.

Students can be considered financially vulnerable as many are on low incomes derived from grants and loans, and hence susceptible to fluctuations in their finances between the times they receive this income and the period it has to cover, as well as the increasing cost of higher and further education in England.

The Government claims the industry can be trusted to act in the best interest of consumers to overcome the problems they admit arise from high cost credit lending. This is just another example of how the market in payday lending does the opposite as firms seek to ruthlessly to exploit all avenues for profit.

Affordable credit is vital for our economy and our society – with yet more proof that the high cost credit industry cannot help itself when it comes to exploiting the financially vulnerable, the question arises yet again as to how much more evidence the Government needs of the damage this lack of regulation is causing British consumers before it will intervene. Asking the legal loan sharks themselves to be responsible for resolving these problems is like asking Jeremy Clarkson to set the speed limit on the motorway….

Wonga have backed down over pressure re targeting students- now help make govt back down on legal loan sharking here!

http://epetitions.direct.gov.uk/petitions/20219 Time for action.Let the goverment and the legal loan sharks know enough is enough.

Edited January 11, 2012 by tawnyowl

[Tawnyowl]

Interesting piece about credit unions in the Mirror today.

Good places to start life again after finishing with the legal loan sharks.

Xmas clubs- savings-loans after a while at good rates.

http://www.mirror.co.uk/news/city-news/2012/01/11/greedy-banks-beware-credit-unions-are-fairer-alternative-115875-23693646/

Slightly concerned in the article that the 73 million promised last year to modernise them,link them with the post office network according to the article has not yet materialised.Can anyone post if this is true.

 

Now other payday lenders attack Wonga- ferrets in a sack- ref here http://bit.ly/wcOWKv sign petition & sort the lot of them!

http://epetitions.direct.gov.uk/petition/20219 Let's Reel in the Predatory Loan Sharks

http://www.themedwaybroadside.com/2012/01/10/tackling-legal-loan-sharks/

 

SNP MSP Margaret Burgess is leading a member's debate on payday loans to raise awareness of the impact on individuals and their families

http://newsnetscotland.com/index.php/scottish-news/in-brief/4071-msp-calls-for-action-to-help-thousands-in-debt

http://news.stv.tv/politics/292348-snp-appeals-to-westminister-to-curb-payday-loans/

 

The Government should feel very uneasy about the numbers of payday lending shops now appearing on our High Streets

American thoughts on Payday, pawn shops on high streets

http://www.kansascity.com/2012/01/03/3350811/jackson-county-considers-pawn.html#storylink=rss

Another complaint is that clusters of such businesses can lead to crime and lower property values.What do you think.?

I also mentioned the Cash Converters type stores that are taking over the lower end of my town, there is Cash Converters, Entertainment Exchange, Harvey & Thompson, another shop I can't remember the name of) all in a two minute walk, makes the lower end of town look very seedy.

The whole industry is trying to 'legitimise' itself through advertising (IMHO) and it is, at the end of the day, adding to the misery and poverty of the country. I also think it helps fuel low level crime as people may steal things to sell to Cash Converters etc to help pay for essentials when their bank accounts have been raided - so far no real evidence of this other than the odd story via my nephews and nieces when one of their friends has been caught...

I have also heard the odd story sillygirl.No evidence.But perhaps no smoke without fire.Anyone else heard stories

Nothing like walking down a high street full of paydayloan,pawn and other high interest get rich quick dumps.Urghhh

Wheres the butcher the baker the candlestick maker gone.Maybe i should not ask that.A changing world

.Just read this article about some Americans who flew into London went by tube and bus round the capital targeting areas for a payday company.Well sure does make your blood boil.What they think of our soft regulation,and thoughts on the working man and women of this country,And the OFT probe last year that made them breath a sigh of relief.As they say its a blast.Link here http://www.ft.com/cms/s/0/e52da39e-2011-11e1-8462-00144feabdc0.html#axzz1jJPNTfnw

Or google- payday sector in search for new frontier.

Edited January 13, 2012 by tawnyowl

[Tawnyowl]

Small article from America.

www.americanbanker.com/bankthink/banks-should-stop-financing-payday-loan-sharks-1045613-1.html

A few points from the article-

1- For the first time, nonbank entities such as payday loan companies will be subject to consistent examination and oversight to ensure that all consumers are receiving the protections afforded by federal consumer financial laws like the Truth in Lending Act, Equal Credit Opportunity Act, and more.

2-The day after Director Cordray's appointment, the CFPB launched its nonbank supervision program and pinpointed payday lending as a top priority area.

3- The White House reports that the average payday customer pays 400% interest on a two-week $100 loan. This lucrative business relies on a lending model of usurious rates designed to keep consumers in a cycle of debt.

4- In fact, the Department of Defense and Congress have enacted reforms prohibiting payday lenders from making loans to active duty military service personnel. Unfortunately for consumers, Congress has failed to pass legislation that would cap interest rates on payday loans to ordinary borrowers.

5-The payday industry thrives in its current form because of financing provided by big banks. Through a series of credit agreements, Wall Street banks provide over a billion dollars in financing to the payday loan industry. Wells Fargo, Bank of America and U.S. Bank alone provide $75-$300 million lines of credit to Advance America, the country's biggest payday lender. Worse still, mainstream banks like Wells Fargo and US Bank are offering their own payday-like loan products (with sanitized names like "direct deposit advance").

6-As the popular movement against corporate greed and corrupt practices continues, big banks should take heed and stop their financing of predatory payday loan corporations, and start offering responsible, affordable small dollar loan products to their own customers.

Will Richard Cordray's recess appointment to head the Consumer Financial Protection Bureau have a profound effect on the banking industry? It will be interesting to see what happens over the next few months.

 

Bit of good news -from London

Wonga.com and other payday loan companies are to be banned from signing major corporate sponsorships with Transport for London (TfL), following the highly criticised deal with Wonga for New Year's Eve 2010.

 

http://www.campaignlive.co.uk/news/1111075/tfl-excludes-payday-loan-companies-big-money-sponsorships/

 

Has anyone gone over their existing advertising on buses etc.They seem to like missing things out,like APR etc.

 

Labour and Conservative MPs have launched a campaign to win a ban on high-interest loans being advertised on television and radio.

http://www.campaignlive.co.uk/news/1050373/MPs-seek-ban-ads-high-interest-loans/

PAYDAY LENDING-A lucrative business which relies on a lending model of usurious rates designed to keep consumers in a cycle of debt.

 

http://epetitions.direct.gov.uk/petition/20219 Let's Reel in the Predatory Loan Sharks

Stella Creasy MP

Boris or Ken. Londoners its up to you.

If you want to tell Boris to do the right thing for London and get those legal loan shark ads off our buses, trains and stations too then email him at [email protected].

We face a choice in May at the ballot box between a London Mayor who shows leadership on this issue by sending a strong message that these kinds of companies are not welcome here until they’re responsible lenders, or a London Mayor who finds a loophole to let them continue to target the capital’s consumers?

 

Tawnyowls thoughts

Who wants to see adverts like these on buses trains and stations during a Olympic year.London the first city to host the modern Olympic games 3 times.Should be promoting London and the rest of the country not some LEGAL LOAN SHARKS. Get the legal loan shark ads off your buses, trains and stations , email the mayor at [email protected].

 

http://epetitions.direct.gov.uk/petition/20219

Edited January 14, 2012 by tawnyowl

[Tawnyowl]

Stella Creasy: 'Payday loan companies are trying to promote a veneer of respectability' – video

 

The Labour MP for Walthamstow, Stella Creasy, talks about her campaign for tougher regulation of payday loans, how these companies are trying to appeal to the Facebook generation, why the UK has become an easy place for them to operate and how they are having a detrimental effect on her constituents

 

http://www.guardian.co.uk/commentisfree/video/2012/jan/16/stella-creasy-pay-day-loan-companies?utm_source=twitterfeed&utm_medium=twitter&utm_campaign=DTN+UK:

 

Defeating Debt in Walthamstow: Get Involved!

When I was elected I made a commitment to our community to tackle household debt in Walthamstow. I’m asking residents to help me to do this in a number of ways this month.

 

On Friday 20 January at 1pm I will be leafleting outside our local legal loan sharks in Walthamstow High Street to raise awareness about the damage these firms do to household finances and encourage residents who are short of cash following christmas to use our local credit union’s services instead.

 

On Tuesday 24 January I am running a free training workshop for anyone who works with residents of Walthamstow in either a professional or voluntary capacity to help develop local understanding of what advice and services are available to residents to help them tackle their debts.If you want to come to our defeating debt training on Tuesday 24 January in Walthamstow at 10am at the William Morris Centre you're very welcome but please do RSVP so we can make sure we have enough briefing papers etc! [email protected]

This training will last two hours and take place at the William Morris Community Centre on Greenleaf Road between 10am and 12pm. You don’t have to have any background in welfare issues to attend and the training will be given by our local representatives of the Citizens Advice Bureau, Christians Against Poverty, Waltham Forest Community Credit Union and insolvency practitioners.

 

Finally, on Saturday 28 January I will be collecting food for local families as part of the ‘heat or eat’ scheme in Walthamstow town centre between 11.30am and 2pm.

 

http://epetitions.direct.gov.uk/petition/20219

 

Interesting report- Barnardo’s calls for credit union services to be made available through the Post Office

Slightly concerned that the 73 million promised last year to modernise them,link them with the post office network and make them available easily to millions more people has not yet materialised.Can anyone post if this is true.

 

A report from the respected children’s charity, Barnardo’s, has highlighted the plight of low income families forced to take out high cost credit agreements and calls for credit union services to be made available through the Post Office network.

The report, A Vicious Cycle: The heavy burden of credit on low income families, analyses the impact of high cost credit on low income families and provides shocking examples of how the poorest often pay most with one high-profile weekly-payment, rent-to-own store charging in excess of £1704 for a standard fridge-freezer compared with £430 for the same item at a well-known highstreet electrical retailer if paid for in cash.

 

Well well well .TFL Why is wronga wonga advertising with no apr showing on advert.Perhaps a Dear Mayor email is due.

[email protected].

Stella Creasy picture and statement.

http://lockerz.com/s/175295750

Dear @MayorOfLondon when you told me legal loan sharks should advertise their rates did you tell tfl too?

 

Who wants to see adverts like these on buses trains and stations during a Olympic year.London the first city to host the modern Olympic games 3 times.Should be promoting London and the rest of the country not some LEGAL LOAN SHARKS. Get the legal loan shark ads off your buses, trains and stations , email the mayor at [email protected].

Edited January 17, 2012 by tawnyowl

[Tawnyowl]

Stella Creasy asks

 

 

 

Join me this Friday at 1pm in E17 High Street to take on the legal loan sharks? there's 8 of them & only 1 of me so all helpers welcome!

Defeat Debt in 2012: End Legal Loan Sharking

 

So who is joining me this coming Friday lunchtime at 1pm in Walthamstow High Street to take on the legal loan sharks then? there's eight of them and only one of me so all helpers welcome!

 

Interesting-thanks to Determindator.Found the link on the epetition thread http://www.consumeractiongroup.co.uk/forum/showthread.php?325085-Epetition-End-the-legal-loan-sharks.-Let-the-govt-know-how-you-feel.Biteback-time.

http://www.telegraph.co.uk/news/politics/ed-miliband/9021464/Ed-Miliband-goes-to-war-on-rip-off-Britain.html

The Labour leader says that the Government must take a more positive approach to stop British consumers from being exploited by “predatory” companies.

* Bank charges: Mr Miliband says his biggest concern is the £2 billion which banks make from unauthorised overdraft fees. He backs plans to give a new consumer watchdog the power to intervene and outlaw excessive fees in the finance sector.

Time to give the banks a slap and pay some of these rip off fees back.

Edited January 18, 2012 by tawnyowl

[Tawnyowl]

Meeting point for todays action against legal loan sharks in Walthamstow is outside the MoneyShop at 73 High Street in Walthamstow at 1pm. Hope you can make it - and wrap up warm!

 

Americas new Consumer Financial Protection Bureau is talking tough. The fightback against legal loan sharks is quickening.

It seems people in America and Britain are sick of the legal loan sharks and hopefully soon will sort them out.Perhaps we should have a joint day of action against the legal loan sharks.Now that would be a day to remember.Perhaps we should also have a joint join a credit union day.That would be two days to remember.

President Barack Obama on Jan. 4 used a controversial maneuver to appoint Cordray as the bureau's first director. As a result, the bureau, which had already started supervising large banks, gained powers to inspect payday lenders and other companies that aren't chartered as banks but still offer consumer loans.

Read more: http://www.foxbusiness.com/news/2012/01/19/consumer-bureau-will-take-immediate-steps-to-end-illegal-payday-loan-practices/#ixzz1jzDUoSEO

I suppose here in Britain we can expect another few thousand payday lenders turning up as things in America hot up.

Time to act

http://epetitions.direct.gov.uk/petition/20219

 

Just hearing a few rumours-heres one-

A legal loan shark is predicting making $182m out of Brits in 2015- made an 85% increase in profits from us last year alone... and thats only one of them.

Less money to be spent in local communities.Profits gathered up, picked up and jetted out of town.Less money for local business owners.So much money going to the legal loan sharks that usually would be spent in your local shops.Less for the local supermarket,newsagent, bakers,garage etc.Surprised the local business owners dont tell them to clear off.Must feel like it.

 

Stella Creasy-felt physically sick looking at an international legal loan sharks internal presentation boasting 46% of total revenue from UK...

And it seems Stella Creasy is getting to the legal loan sharks,Quote.

"wow- a legal loan shark just cast aspersions on my character...think even as a politician I can just about claim the high ground..just."

And as she says "The weather might be rubbish but it will take more than that to stop me taking on legal loan sharks at 1pm in Walthamstow High Street."...

Boys,the ladys just warming up,you aint seen anything yet.I would start planning your flights home.Legal loan sharks wherever you are, pack up and ship out.

 

So Cameron wants 'moral capitalism' does he? He'll be putting a stop to legal loan sharks charging 4,000%+ interest then? Ah, thought not.

Especially not with chums like multi-millionaire venture capitalist, Adrian Beecroft, whose interests include an online company offering payday loans at huge rates of

interest.throwing a few hundred thousand pound into the coffers.

 

As i have said before i hope i dont seem to biassed.I saw the sub primers arrive and the turmoil they spread across the world.This shower wont last but its the damage they do in the meantime.And what they take out of local communities and the country.

Latest on Walthamstow High Street,live from Stella Creasy MP who is at this very moment protesting outside the legal loan sharks habitat.

Loan shark in high st 'stop harassing my customers' me 'stop harassing my community' - now they are offering tea and smiles..

He then tried to flatter me 'ooh we've seen you on telly' me ' how about you stop charging people extortionate rates then?'...

Got to admire a MP who stands up to them.Stella Creasy MP walks the walk as well as talks the talk.

The protest has finished with this comment from the MP-Thank you to the 25 people who turned up and helped us hold five of walthamstow's legal loan sharks to account in the rain!

There are rumours of a similar protest against legal loan sharks in Liverpool tommorow.

 

Just on Chatham High St, Kent Eight shops dealing in 4 figure APR% - Cross party support for Labours end legal loan sharks in Medway.

Promoting credit unions and cracking down on the legal loan sharks.

http://www.medwaycreditunion.co.uk/ or http://www.kentsavers.co.uk/ are the rising stars round there offering safe products and savings.

Edited January 20, 2012 by tawnyowl

[Tawnyowl]

News of payday news on the other side of the pond.A bit of a change for a Saturday

Big Banks Behind Payday Loan [problem]s

 

Bit of news from Iowa-Members of Iowa Citizens for Community Improvement released a report Tuesday — authored by National People’s Action – indicating that capping interest rates on payday loans at 36 percent would save Iowans more than $36 million every year. The report, titled “Profiting from Poverty,” that nearly half of all licensed payday lenders in Iowa have been financed by big banks.

 

Big Banks Are Making Predatory Payday Loanshttp://www.responsiblelending.org/payday-lending/tools-resources/bankpaydaylending.html

 

Interesting and sad how many people here and in America are trapped by the legal loan sharks.

And of course the Bailout Song

Please excuse me this morning.Perhaps i have gone slightly off topic.Finding it hard to forget the sub prime days.And the tricks of the subprimers and their brokers etc.

 

Americas Consumer Financial Protection Bureau Director sounds like he means business.

Director Cordray speaks on payday loans at our field hearing in Birmingham, AL

For the first time, nonbank entities such as payday loan companies will be subject to consistent examination and oversight to ensure that all consumers are receiving the protections afforded by federal consumer financial laws like the Truth in Lending Act, Equal Credit Opportunity Act, and more.

 

Slight update.http://www.cfpbmonitor.com/2012/01/19/some-clues-to-cfpb-plans-in-cordray-remarks-at-payday-lending-hearing/ Could be interesting this Bureau has bite if needed .We will see.'

 

Latest on the Liverpool campaign. against Legal Loan Sharking being held today i have is coming up.

Steve Rotheram MP

will be there supporting colleague outside the Bright House store in Broadway Liverpool today for the End Legal Loan Sharking campaign.

Just trying to find the time.I believe it is 1-30pm

Seems to be plenty of support for this one in Liverpool.

One person called Lana supporting this has just said -

Let's tell people about the tremendous work being done by credit unions in our communities! A positive alternative to legal loan sharks!

After a statement like that i just looked to see how many credit unions there are in Liverpool.There are so many.Anyone wanting to join one in Liverpool or anywhere in the country just put your postcode in the following link.Goodluck

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

And have a look at what roughly a credit union loan could cost after joining and being with them a short while.

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

Good luck with your campaign against legal loan sharks this afternoon.

End legal loan sharking-http://epetitions.direct.gov.uk/petition/20219

 

News from the campaign session this afternoon from Stephen Twigg MP "Excellent turnout for Co Op Party campaign session in Norris Green Broadway against Legal Loan Sharks & to promote Norris Green Credit Union"

Another nice comment

Thanks to Steve Rotheram MP,Stephen Twigg MP and Luciana Berger MP, Cllrs and Co-op activists for coming and campaigning to end legal loan sharks!

Edited January 21, 2012 by tawnyowl

[caro]

Looks like the campaign is gathering momentum. Thanks for keeping us updated Tawny.

 

Don't forget to sign the petition on payday loans in my signature (and the one on bank charges while you're at it).

[Tawnyowl]

Payback Time:

TONIGHT 19:30 ITV

More&more Britons are being forced to borrow money&turn to paydayloans to fund their day-to-day expenses.

Walthamstows fight against legal loan sharks on TV TONIGHT

Perhaps one to watch.

And dont forget in Walthamstow on Saturday.

Saturday is heat or eat day in Walthamstow: help local families by donating non perishable goods in town centre 11.30-2pm.

 

HOW PEOPLE ARE TRAPPED BY PAYDAY LOANS-Payplan

Did you know, 86% of payday loan users use them to pay for food and bills.

Are you aware 47% of payday loan users took out more than 6 in the last 12 months

Did you know 61% of payday loan users take more than one at the same time?

47% of paydayloan users have taken out 6 or more payday loans in the last year

http://www.payplan.com/debt-news/2012/01/25/payday-loan-borrowing-the-facts/

ITV TONIGHT 7-30 PM.

http://epetitions.direct.gov.uk/petition/20219

 

Do you live near SwindonCommunity groups urged to bid for loan sharks money

http://www.swindonlink.com/swindon_scene/community-groups-urged-to-bid-for-loan-sharks-money

To report a loan shark: Call the 24/7 confidential hotline 0300 555 2222

Text ‘loan shark + your message’ to 60003

E-mail [email protected]

Find us on www.facebook.com/stoploansharksproject

Log-on to www.direct.gov.uk/stoploansharks

 

 

 

Protection for the American Military.Are ours as well protected.

http://www.consumerfinance.gov/pressrelease/federal-and-state-officials-announce-new-law-enforcement-partnership-to-protect-military-community/

 

CFPB begining to biteback.

CFPB Promises to Police Non-Bank Lenders

http://www.thestreet.com/story/11384080/1/cfpb-promises-to-police-non-bank-lenders.html

 

Did you watch the payday lenders on telly last night claiming they don't target people in financial difficulty & felt sick? sign this! http://epetitions.direct.gov.uk/petition/20219

Stellacreasy

 

"If you are hacked off govt seems complacent on legal loan sharking sign the petition and tell your MP to get on it!"

 

The Scottish National Party has called for action from Westminster on the issue, with MEP Alyn Smith warning the high cost of borrowing could leave vulnerable people with severe financial difficulties.

Margaret Burgess, SNP MSP for Cunninghame South and former director of Citizens Advice Scotland, has lodged a motion for a debate at Holyrood on the issue of payday loans. She warned borrowing from such companies “often just traps people in a downward financial spiral which is hard to escape from”.

Cameron and his cronies must get their act together and regulate these companies

 

 

Edited January 27, 2012 by tawnyowl

[Tawnyowl]

Interesting look at a bbc tv report on credit unions featuring Leeds credit union..Are credit unions about to or are seeng their biggest increases in members in years.Lets hope so

A school branch of a credit union. 4000 SCHOOL MEMBERS. First time i have heard of that.Good idea

Does your credit union work as hard as this one..

http://www.bbc.co.uk/news/business-16754910

Anyone wanting to join one anywhere in the country just put your postcode in the following link.Goodluck

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

And have a look at what roughly a credit union loan could cost after joining and being with them a short while.

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

Knocks the legalloansharks into touch.

 

A sight change for a Saturday morning.A look at the legalloansharks of Australia.Some names may sound familiar.

Amazing how wordlwide there is a growing problem with the legal loan sharks.

On the one side consumer groups calling for caps and the sharks resisting all pressure and doing whatever they feel like.Making profits from poverty.Maybe listen to this report from Australia.

http://www.abc.net.au/news/2011-12-22/consumer-advocates-want-cap-on-payday-lenders/3743534

 

Want to get round a cap.See what this Queensland Payday lender did.

http://www.abc.net.au/news/2011-11-16/payday-lending-scheme-slammed-by-tribunal/3674434

 

Oh dear some Australian legalloansharks complaining slightly about a interest rate cap.Sound familiar.

http://www.abc.net.au/news/2011-09-06/payday-lenders-attack-government-reforms/2872382

 

How to get round a interest rate cap-Queensland.Recognise the shop.

http://www.couriermail.com.au/business/clients-lose-homes-as-lenders-exploit-loopholes/story-e6freqmx-1226175646422

And what about this-

In one instance, a 25-year-old man on a disability pension and living with his mother had up to 35 loans with a series of providers using "anti-avoidance" techniques to get around the 48 per cent cap.

 

London news for paydaylenders-oh dear.

http://www.londonstockexchange.com/exchange/news/press-association/news-detail.html?newsId=N0175211327680069314A&packageId=N0175361327680943148A&lang=en

 

 

Lenders face tougher regulation

 

http://www.bbc.co.uk/news/business-16763312

A lot of people want action sooner rather than a slap or two in a year or two when the Financial Conduct Authority (FCA) takes control of overseeing the consumer credit market.Wonder if they will bottle it when faced with the power and limitless funds of the paydayloan companies legal teams.

Maybe sign the epetition. http://epetitions.direct.gov.uk/petition/20219

Things might happen quicker if enough people get on board.Put the epetition on twitter,facebook wherever to gain some votes and support..Please excuse me i am definately begining to feel biassed on this subject.Suggesting such things.TUT.

PS-anyone got any better ideas.

Update on the heat or eat event in Walthamstow.

It was a great success,here is one of the donations- http://lockerz.com/s/178523170

I also believe others were there directing the legalloansharks customers in the direction of the local credit union.One at a time so as not to create to big of a queue.Such good news.

Interesting news from Wales

http://www.bbc.co.uk/news/uk-wales-politics-16729147

ALSO-An advertising campaign will be launched next month to promote credit unions on daytime television.

 

Article on the bank transfer day in America in November which saw over 700000 people leave the big banks and join credit unions.

http://www.reuters.com/article/2012/01/27/us-bank-transfer-idUSTRE80Q1TU20120127

Edited January 29, 2012 by tawnyowl

[caro]

For information.

 

As an ex voluneer and vice chair,then and paid development worker for the Credit Union, I thought that perhaps perhaps some people might be interestd in the way they work.

 

 

 

Most Credit Unions in the UK come under the umbrella organisation of ABCUL(Association of British Credit Unions)they have a very informative web site.Just type ABCUL into your browser.

 

Credit Unions are a Not for Profit Organisation which basically means that all the profits are put back into the fund or deployed amongst the members as dividends annually .Credit Unions are controlled by the FSA and have very strict guidelines on the amounts of cash reserves they carry in case of mass withdrawals.

 

The interest rate on loans is 12.68% apr or one percent per month.

 

The usual procedure for obtaining a loan is to open an account and save for a certain period usually decided by the management committee before a loan is granted, the amount loaned is usually set at a multiple of the amount in savings again decided by the management committee.

 

The management committee is elected by the members once a year at the AGM and any member can be nominated. It costs £1 to join.

 

A lot of Credit Unions are now issuing loans in special circumstances without collateral.

 

The clever thing about the repayments is that you agree when you take out the loan to pay a certain amount into your savings when you make a loan repayment.

 

To illustrate this, if you save an initial £50 the CU may lend you £100.The interest due in this would be £6.50 total over one year. So if you paid back £2.50 per week after a year you would have paid off your loan and have a balance of £73.50 in your savings. On a second loan most CU's offer a loan of three times your savings so you could borrow £220 and still have £74.5 in savings which helps the organisation to fund loans to other members and enables the lender to build capital as he repays the debt.

 

Life insurance is a part of the deal and generally pays out double the value of savings to the next of kin or authorised party as well as paying off his loan, this is a free service. The Credit Union is run by volunteers and it is not possible to be on the committee if you are a paid worker. Paid workers are usually only taken on by the larger Credit Unions where the amounts of Money involved require the specialised services not available in the voluntary sector, and yes these are usually funded by Grants from various sources.

 

I must admit to being a great fan of the Credit Union movement and i can say that very few things have given me as much pleasure as the time i was able to pay off a loan shark who was charging a whopping 430%apr on a loan for a member and set them on the road to controlling their finances.

 

The biggest Credit Unions in this country belong to the Police and Fire services who use their loans to buy their houses etc. And in Ireland the Credit Unions are huge and have many high street premises and many hundreds of thousands of members Issuing mortgages and provide all the services you would expect from your high street bank but withot lining the pockets of the directors.

 

 

 

[Tawnyowl]

Thanks Caro for putting that on about the credit unions And thanks to peterbard for writing it.Must have been a interesting and rewarding job.Full of interesting information.

Looks like things are on the up for credit unions

Interesting how the loans work and good that life insurance is included.

And while paying your loan back you may be saving a few pounds as well.

For many people after the nightmare of the legalloansharks this must be the way forward..

And back in control of your finances.This is surely what many want,myself included.

 

I like this statement-

I must admit to being a great fan of the Credit Union movement and i can say that very few things have given me as much pleasure as the time i was able to pay off a loan shark who was charging a whopping 430%apr on a loan for a member and set them on the road to controlling their finances.

A few people would like the possibility of finishing with the legal loan sharks once and for all.Maybe pop in and ask your local credit union for advice.Just maybe they might be able to help in some way a little down the line.

I have to admit to joining one myself.Both the saving and xmas club receiving a few poumds shortly.

Now back to the sharks.

 

.‘LAX REGULATION MEANS BRITAIN IS CURRENTLY THE DESTINATION OF CHOICE FOR payday loan COMPANIES. How nice to know we are number one target for the predatory lenders.

Read more: http://www.dailymail.co.uk/news/article-2094115/Instant-money-loans-Payday-loan-firms-ruining-lives.html#ixzz1l7KhWaZz

Nice article on the legal loan sharks,bloodsuckers,predatory payday lenders call them what you will.

http://www.dailymail.co.uk/news/article-2094115/Instant-money-loans-Payday-loan-firms-ruining-lives.html

 

The predatory payday lenders did not target London.You are having a laugh.Read this article Londoners.They are not bothered about you, they target you,then pick up the profits and jet out of town.Leaving your communities and local business owners all the poorer.Heres a taster.

The four Americans came in search of a new frontier. They flew from Kansas and Arizona and checked into a shabby hotel in London last May. Every day for a week, they rode buses and tubes to parts of the city most visitors would only end up in by mistake, places like Barking, Ilford, Kilburn and Wood Green. “We just did a lot of walking,” said Mike Charles, who comes from Arizona. “Anywhere that wasn’t Westminster or Chelsea or Richmond

http://www.ft.com/cms/s/0/e52da39e-2011-11e1-8462-00144feabdc0.html#axzz1jJPNTfnw

Londoners and other targeted people.Want to bite back.Sign the epetition.

 

"If you are hacked off govt seems complacent on legal loan sharking sign the petition and tell your MP to get on it!"

 

http://epetitions.direct.gov.uk/petition/20219

KIND OF SEND THEM A MESSAGE TO PACK UP,CLOSE DOWN AND SHIP OUT.No more predatory bloodsuckers - parasites the country is closed to you.

Edited February 1, 2012 by tawnyowl

[Guest]

Hi

Apologies if this has been posted before, it is from Credit Today 19 Jan.

The cynical side of me suggests that their withdrawal from this market may be more a result of the poor recovery statistics on these badly documented loans than any worries about the morality of them or the “way that they are going.”

“Debt collection agency Fredrickson International will stop collecting debts owed to payday lenders due to concerns about the level of complaints and regulatory scrutiny the sector is generating.

The firm, part of Interlaken Group, said it will continue to service paying accounts for existing customers, but has closed its doors to any new business from payday lenders because of “grave concerns” it has about the market.

The decision will apply across all its businesses, which include Credit Account Management, a subsidiary which manages whole panels of collections agencies (DCAs), in a move that places pressure on competitor firms which collect for payday lenders.

Jan Michael-Lacey, sales and marketing director for Interlaken Group, told Credit Today: “We will no longer be working in the payday loans sector, as we have reservations over where the market is going.

“The Office of Fair Trading (OFT) is scrutinising the sector, and the volume of complaints being generated about this industry has given us grave concerns.”

Lacey added that the firm would wait for further announcements around the regulation of payday loans before it considered whether to take on payday loan clients in future.”

[Guest]

HI

Thanks Tawnyowl

I wrote it some time ago 2008 I think, there has been legislative changes to the details since then, most of them positive, variations in the terms of loans that can be offered ,relaxation of the common bond even interest given on savings.

The principles remain the same though, and they are always looking for volunteers. I found one of the few benefits of continued ill health and the inability to obtain gainful employment is that it gives you time to indulge in voluntary work, nothing better than the camaraderie created amongst people doing things that they believe in for absolutely no money IMO.

Peter

[Tawnyowl]

I thought the epetition by now would have had many more votes than it has got.Anyone got any clues why when all the publicity generated against the legalloansharks this seems to be so.

Perhaps so many people are trapped in the cycle of rollovers paydayloans debt they havent got the time to support such action.Or have not seen the epetition-just in case,here it is.http://epetitions.direct.gov.uk/petition/20219

Yesterday on the day govt was cutting support for cancer patients & disabled Stella Creasy MP was being attacked by some 4 challenging legal loan sharks.Sickening.Why does the govt not get the message enoughs enough.People are sick of being targeted by predatory legalloansharks and act.

With the profits to be made from lending to those made desperate in austerity Britain, this surge of toxic credit in all its forms will continue unless the government acts. Caps and tougher regulation of the way this market impacts on the financially vulnerable are required not just for high cost credit, but all forms of credit. In the film Jaws, the mayor urges Roy Schneider not to tell anyone of the dangers ahead saying, “It’s all psychological. You yell barracuda… everyone yells “Huh? What?” You yell shark, we gotta panic on our hands”.Whilst this government claims barracudas and pretends the credit crunch hasn’t created a credit crisis, the British public don’t stand a chance. We can and should do more to stop them becoming the chum for the legal and illegal loan sharks.Tawnyowl borrowed the above statement from somewhere.I think Stella Creasy.I cant take credit for it but just like it being a old jaws fan.

Smooth operations.Parasites sucking the blood out of local communities

http://www.dailymail.co.uk/news/article-2094115/Instant-money-loans-Payday-loan-firms-ruining-lives.html#ixzz1l7KhWaZz

 

Article on a illegal loan shark

http://birminghamnewsroom.com/2012/02/loan-shark-jailed-for-failing-to-pay-back-illegal-profit/

Edited February 2, 2012 by tawnyowl

[Guest]

Hi Tawnyowl

Yes it is disappointing, although the message does seem to be reaching some policy makers.

The major players here are well practiced in manipulating public perception regarding these loans.

They perfected their art in the states and Canada some years ago. If you look at the TV adverts for instance, stylised pastiches of smiling sixties style families or cartoon characters. It all hides the fact that these loans are targeted at people in dire financial circumstances. People who aren’t directly involved are given the impression that these are harmless financial products.

Of course the numbers of people in debt will eventually force the government to do something as they have abroad, but in the mean time they are making hay whilst the sun shines.

Peter

[Tawnyowl]

HI

Thanks Tawnyowl

I wrote it some time ago 2008 I think, there has been legislative changes to the details since then, most of them positive, variations in the terms of loans that can be offered ,relaxation of the common bond even interest given on savings.

The principles remain the same though, and they are always looking for volunteers. I found one of the few benefits of continued ill health and the inability to obtain gainful employment is that it gives you time to indulge in voluntary work, nothing better than the camaraderie created amongst people doing things that they believe in for absolutely no money IMO.

Peter

Hi peterbard,

Coming back to the credit unions as there is such a lot going on with them. Some of the most important changes ever made to them are happening and more could do if the investment of 73 million goes ahead..Just putting a link on and maybe ask a few questions about them.

Maybe you may know the answers.

As for your statement

"Nothing better than the camaraderie created amongst people doing things that they believe in for absolutely no money "What can i say.Genuine people genuine organisations.Not a bankers bonus in sight.

And your other statement

"I must admit to being a great fan of the Credit Union movement and i can say that very few things have given me as much pleasure as the time i was able to pay off a loan shark who was charging a whopping 430%apr on a loan for a member and set them on the road to controlling their finances."

I bet they have not forgot the help you managed t o give them and the relief they must have felt.Nice one peterbard .Pity you are not still there a few of us would be at the door perhaps.

http://www.abcul.org/media-and-research/briefings/postoffice

The major missing ingredient which would see credit unions grow to play the significant role they have in many parts of the world is the introduction of ‘back office’ integration. When credit unions work together to provide behind the scenes services on a central basis it has a dramatic impact on their scale.

For example, if a number of credit unions in Britain shared one banking platform it would enable them to offer shared services through the Post Office network and each other’s branches. It would also allow for a telephone helpline giving credit unions much longer opening hours and easy internet access to accounts

Crucially, this would allow a tie in with the Post Office network which would vastly increase access to credit union services, including affordable credit and safe savings.

A big statement

What would a credit union back office mean?

A one-off capital investment in a credit union back office would deliver a significant step change in the scale of the sector. By allowing a simple, tried and tested integration with the Post Office network, millions of individuals would gain convenient access to credit union services.

It would also allow for a telephone helpline giving credit unions much longer opening hours and easy internet access to accounts

And what about these things that could happen when the PO is on board

 

 

• individuals would be able to walk into any one of 11,500 Post Office branches and join a credit union and/ or carry out a wide range of transactions in real time.
  
• individuals would be able to respond to Post Office advertising and join a quality credit union locally. The Post Office is a trusted brand for low income people. It would be able to help individuals comply simply with off-putting identity regulations for opening a ‘bank’ account.
  
• Post Office staff would be able to view details of a credit union members’ account, check balances, accept and pay out savings, and forward information and requests to the credit union.
  
• where appropriate Post Office staff could provide instant responsible loans. Credit union staff could pre-approve very small lines of credit (£30 - £400) that were affordable and convenient.
  
• making small sum affordable credit accessible through the visible and trusted Post Office network has the exciting potential to transform the financial services market for low income people. It would challenge the high cost credit market which currently takes hundreds of millions of pounds in interest from those on lower incomes.
  
• each transaction carried out by the Post Office would produce a transaction fee creating a new revenue stream for the network. And the general increase in footfall would mean more sales for the Post Office.
  
• A greatly scaled-up credit union sector would meet the Government’s commitment to promote greater competition in financial services and to support a greater role for mutual’s as part of a diverse sector.
  
• Cautious estimates demonstrate that 1.4 million new loans in a five year period would save consumers £336 million in five interest payments
  

Some news from Ireland.

Credit unions warn of increasing payday loan dependence

 

http://www.bbc.co.uk/news/uk-northern-ireland-16786387

 

 

 

 

I understand the goverment promised 73 million to the credit unions to modernise and link up with the post office.

Some are saying this is not happening.Does anyone know the answer to this.

I have heard that tv coverage advertising credit unions starts this month.

.Speed and ease of access are so important to people this day and age so surely the post office plan needs urgent action so millions of people will find it easier to access credit unions.

Does anyone know about this.

Edited February 2, 2012 by tawnyowl

[Guest]

HI Tawny owl.

To be honest i dont know.

 

As far as i was aware the £73 m was still ear marmed for the CU developement over the next four years. i heard about certain elements of the "Gateway initative" being withdrawn but i did not hear that the funding had been withdrawn. I will find out.

 

I dont know if you have seen this from Hansard

http://www.publications.parliament.uk/pa/ld201212/ldhansrd/text/120110-0001.htm#12011050000493

[Guest]

I found this intersting

 

Lord Elystan-Morgan: My Lords, can the noble Baroness kindly tell the House what use is made by judges in England and Wales of the statutory powers vested in them that allow them to ameliorate or even to disallow conditions in a loan agreement that are unconscionably harsh upon a vulnerable borrower?

Baroness Wilcox: I do not have the answer to that question today, but I will certainly look into it, write to the noble Lord and put the answer in the Library.

 

Yes she will have a problem because there isnt any, as far as this is concerned were better served by the Money lenders act 1927.

 

Peter

[Tawnyowl]

HI Tawny owl.

To be honest i dont know.

 

As far as i was aware the £73 m was still ear marmed for the CU developement over the next four years. i heard about certain elements of the "Gateway initative" being withdrawn but i did not hear that the funding had been withdrawn. I will find out.

 

I dont know if you have seen this from Hansard

http://www.publications.parliament.uk/pa/ld201212/ldhansrd/text/120110-0001.htm#12011050000493

 

No i had not seen this but have seen earlier questions that had been asked by Lord Kennedy. He is quite keen it seems on getting to grips with the legalloansharks.Just that the answers allways seem to be we are looking at the problem and will report back.Seems to drag on for ever.

Now just a quick note to make if anyone knows any organisations in Swindon that may want a few pound gained from a illegal loan sharks. Have a look at the following.And maybe grab a few pounds for a good cause.Local groups in Swindon urged to bid for loan sharks cash- send your ideas to [email protected] before 10th Feb

Story- http://www.swindonlink.com/swindon_scene/community-groups-urged-to-bid-for-loan-sharks-money

I found this report interesting. A vicious

cycle

The heavy burden

of credit on low

income families

http://www.barnardos.org.uk/a_vicious_cycle_report_online.pdf

Edited February 3, 2012 by tawnyowl

[Tawnyowl]

Hi Tawnyowl

Yes it is disappointing, although the message does seem to be reaching some policy makers.

The major players here are well practiced in manipulating public perception regarding these loans.

They perfected their art in the states and Canada some years ago. If you look at the TV adverts for instance, stylised pastiches of smiling sixties style families or cartoon characters. It all hides the fact that these loans are targeted at people in dire financial circumstances. People who aren’t directly involved are given the impression that these are harmless financial products.

Of course the numbers of people in debt will eventually force the government to do something as they have abroad, but in the mean time they are making hay whilst the sun shines.

Peter

Hi,missed that post.I understand what you are saying.Targeted by predators giving the impression of harmless financial products.Sooner the policy makers crack down the better.

[Tawnyowl]

The tonight programme looks at the high interest legalloanshark paydayloan market.

As household debt rises to the five billion mark the programme looks at how ordinary households are borrowing just to fund their day-to-day expenses.

http://www.itv.com/itvplayer/video/?Filter=300105

Hoping that the credit unions really fire up.Sooner they link up with the post office network the better.

[sillygirl1]

I watched the program and they didn't really get to the crux of the issue - that these companies need to be stopped before they even start.

 

I know about the visiting Americans looking for 'soft' areas, my area was picked out and discussed on an American website as being 'typical London now' which amused us, it depends on who you speak to whether or not we (who are in an outer London borough) are from London or Surrey....