End Legalised Loan Sharks.

[Tawnyowl]

I hope no one thinks i am going on a bit about credit unions but i see them as one of the services to take on the legalloansharks.

Many in America are taking on the legalloansharks and offering paydayloans.

A few are offering paydayloans here and i hope the idea spreads.

Sometimes it seems like slow motion.I will put a credit union in in Britain that is one of the first to offer payday loans to its members.Might interest someone.As banks seem to no longer be a option for many, credit unions must really power up even link up and maybe get to grip with what many people need.Fast affordable loans at fair rates.And break the hold of the legalloansharks.

If anyone wants to join their local credit union links here.Might be a good idea.

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

And have a look at what you would roughly pay on a loan when you have been a member for a short time.

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

 

Back soon with the British credit unions offering payday loans to its members.

Here is the loan details from a ethical lender not a legalloanshark.

http://www.cuok.co.uk/index.html

CUOK is a short term loan facility from London Mutual Credit Union designed to see you through until your next payday. It is exclusively for people who live or work in Southwark or Lambeth.

http://www.cuok.co.uk/eligibility.html

Hopefully payday loans at fair rates will soon spread Nationwide through all credit unions.

It seems speed of loan and ease of access is the way to go.The faster the better.But at fair affordable rates.

 

Second British credit union taking on the legalloansharks.GOOD ON YOU 6towns credit union.West Bromwich.

The amount of times when the legalloansharks when asked for a comment suddenly do not want to know.I wonder why.It will not be long i feel before the puppets develop woodworm and vanish in the mists of time.

Perhaps,who knows.The puppets sure are ageing fast.

 

As advertising obviously pays perhaps its time to fight back.Obviously not having the funds they have we sure could have some fun.Shark badges,shark attack etc and memorbilia could be sold to finance such a quest. 20 quid should do it. I have read the massive amounts some paydaylending firms are now spending to attract their victims.

Perhaps one of our own adverts advertising credit unions is called for. I have many ideas for such a subject involving inflatable sharks,puppets scissors.Slogans by the bucketful including You wont get me i am part of the union,that kind of thing. Shark chase at the time.Get in touch and it will be on youtube in no time.Perhaps it is time for a rest.Tawnyowl is getting overactive.

Now do not all rush the doors of the credit unions on Monday.Give Tawnyowl a chance.I am not as fast as i used to be.

Amazing.MPs from all sides.But maybe not the right amount or powerful enough.The public a vast majority,councillors debt advisors,creditunions debt charities old uncle tom cobley and all want regulation of the legalloansharks and nothing happens.Yet.

 

Back in March we were talking about sending a email to MPs about a amendment 87 to the Financial Services Bill .Anyway this was the rough email sent followed by the result.

Suggested text some sent to their local MPs

Dear XXX

As one of your constituents I'd like to let you know about my support for amendment 87 to the Financial Services Bill currently being debated by parliament. This would give the new financial regulators the ability to cap the excessive costs of credit and so help tackle legal loan sharking. Giving these new powers to this body to address the conduct of this industry and the costs of financial products like

payday loans would send a strong message to this industry about the rates of interest that are acceptable to charge. It could therefore make a real difference to the millions of Britons now struggling financially who are borrowing from these companies to make ends meet by encouraging firms to cut their charges.

Please co-sign Amendment 87 and encourage your colleagues who are on the committee to vote in favour of this amendment when it is debated in the coming days.

RESULT.Our day will come.

1 March 2012 Labour MPs table an amendment to the Financial Services Bill at committee stage, that would give the regulators the power to cap the charges any company can levy for credit to prevent detriment to consumers. The amendment is voted down by Conservative and Liberal Democrat MPs.

Edited April 15, 2012 by tawnyowl

[Michael Browne]

Alternative to payday lenders offered at new discount site

 

 

A new discount website will encourage hard-up people to turn to credit unions rather than become loan shark victims.

 

Smarterbuys.org.uk will be launched by the social housing organisation Northern Housing Consortium (NHC) on Monday and will offer cut-price household items. To attract buyers, one national deal a month will be offered at half normal prices.

 

But the site will also lead shoppers to responsible credit from local credit unions. Traditional discount sites tend to flog high-cost credit deals.

 

Jo Boaden, chief executive of NHC, said: "Payday loans and weekly payment stores offer easy borrowing, but at staggeringly high interest rates. We have created Smarterbuys as a sustainable alternative."

 

She said that the link to credit unions is crucial.

 

"Membership of a credit union can offer real benefits in terms of financial advice and support, as well as savings and low interest loans."

 

Credit unions are run as financial co-operatives owned and run by their members to help those on low incomes get affordable credit.

 

The new scheme will be promoted through tenant newsletters, websites and rent statements.

So far, 80 housing providers with one million tenants have signed up.

 

http://www.independent.co.uk/money/loans-credit/alternative-to-payday-lenders-offered-at-new-discount-site-7643902.html

 

http://www.northern-consortium.org.uk/Page/NewsArticle.aspx?ArticleId=1032

 

http://www.smarterbuys.org.uk/

[caro]

Just a reminder that the OFT are still investigating PDLs. If anyone has any info that they think may help with this, they need to contact the OFT before 18th May. http://www.oft.gov.uk/OFTwork/credit/payday-lenders-compliance-review/

[Tawnyowl]

Interesting how this story about a paydayloan application for a shop developed.And seems to have pickled the legalloanshark for the time being.I have just learned of this victory.Well done Chaucer ward Cllr Claire Hickson and local residents.

November-2011

Payday loan shop seeks to open in Tower Bridge Road

Wednesday 30 November 2011

London SE1 website team

A chain offering controversial payday loans has applied for planning permission to open in Tower Bridge Road.

 

Southwark and Lambeth Labour politicians including Cllr Peter John, Harriet Harman MP and Val Shawcross AM launched their campaign against 'legal loan sharks' in Walworth Road last month

 

Instant Cash Loans Ltd, which has 407 stores under 'The Money Shop' brand, has submitted a planning application to Southwark Council for the change of use of the former amusement arcade at 82 Tower Bridge Road.

Tower Bridge Road payday loan shop: councillor’s fears of rising debt

 

Wednesday 11 January 2012

London SE1 website team

A planning application for a payday loan shop in Tower Bridge Road will now be decided by Bermondsey Community Council after Southwark Council received 12 objections from local residents

 

LAST NIGHT

Victory! Just blocked a new payday loan shop on the basis of the new National Planning Policy Framework.

Such good news.Victory for local residents and other business.Who wants a legalloanshark next to their shop.Or on your high street.

Latest comment i can find from Cllr Hickson

Really thrilled that we were successful in our campaign against this payday loan shop. My main argument when I presented to the committee was that these companies run against the new National Policy Planning Framework's promotion of sustainable economic development. Looking forward to SE1's full coverage of what was quite a complex debate tomorrow. Pity that the coalition has not acted sooner to regulate them more effectively.

 

Have we finally reached saturation point on our high streets for the legalloansharks.We shall see.

Here is another one-- Jan 20th Devon

A CASH loan business has been refused planning permission to change the use of a shop in Barnstaple's High Street.

Instant Cash Loans Limited applied in October to the district council to change the use of 18 High Street, to open a Money Shop offering "payday loans", cheque-cashing, and pawnbroking.

The council said it had refused the plan because it would be "detrimental to the vitality and viability of the primary shopping area" and contrary to policy to conserve the character of the town centre.

To true

A good enough reason to use any time a legalloanshark wants to move on to any towns high street

 

 

And from Scotland

Payday loans are under scutiny

http://www.berwickshirenews.co.uk/news/local-headlines/payday-loans-are-under-scutiny-1-2144701

Comment-They are making personal debt in the UK bigger whilst exporting massive profits measured in billions abroad.

Comment-“On a human scale there are stories in the national press about the payday loan debt explosion causing depression, marriage break up and even suicide.

 

Story of someones trouble with paydayloans.

I’m trapped in a cycle of debt

 

 

http://www.people.co.uk/magazine/real-life/2012/04/15/im-trapped-in-a-cycle-of-debt-102039-23822730/

Edited April 17, 2012 by tawnyowl

[sillygirl1]

Good news, at least some influential people are now waking up to the new 'blight' on the High Street and in high profile areas.

 

These shops, whilst providing jobs, do not provide much else to the local community and in fact make it look rather 'seedy'.

[Tawnyowl]

#SaveBianca! Ask Your MP to vote for the End Legal Loan Sharking Amendment to the Financial Services Bill on Monday 23 April 2012!

 

Hello!

I'm writing to let you know that tonight I have tabled an amendment to the Financial Services Billl which has cross party support including Conservative MPs. This would give regulators powers to tackle the problems caused by legal loan sharking. Please help this become law by asking your MP to join us and vote for this amendment next Monday 23 April 2012.

The Financial Services Bill covers many issues including reforming the way banks are regulated and the creation of a new Financial Conduct Authority. Crucially the new FCA will also oversee consumer credit – and have the power to act against companies who offer ‘toxic’ financial products. This amendment to Clause 22 would give this new body specific powers to cap the charges firms make for credit.

 

Fines will only have a limited impact on an industry which is making millions lending money at astronomical rates of interest to British families given the demand for their services in our current economic climate;an industry where in last year alone one firm posted a pre-tax profit of £162m, and another paid its chief executive £1.6m. 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 support 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 current 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 do the same- we only have until Monday 23 April to try to lobby all MPs to ask them to defy the Government and support this amendment!

Suggested text to send to your local MP

Dear XXX

As one of your constituents I'd like to ask you to vote for the amendment to Clause 22 of the Financial Services Bill which will be debated on Monday 23 April. This amendment will help the fight against legal loan sharking in Britain. It has been tabled by Stella Creasy MP -and has support from MPs in different parties including the Conservatives- and would give the new financial regulators the ability to cap the excessive costs of credit. In an industry making so much money from lending to people in this way, 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.

I know many MPs agree this industry is out of control in our high streets and online- I hope you will join with your colleagues in the fight to end legal loan sharking in Britain and I look forward to reading that you voted for this amendment,

Edited April 18, 2012 by tawnyowl

[Tawnyowl]

I have written before about donations to political parties.Why would someone say here you are,here is 500000 pound or similar.Have a nice day.

You have to ask yourself the question-money for influence it is only natural.

One person with links to paydayloan companies and private healthcare drops over half a million pound on a political parties lap.Fair enough.I am at a loss to understand such things happening.

 

Sometimes i look at the situation in America with the paydaylenders and many similar things seem to be happening.

Here is a article explaining what i mean.

Payday lenders up their contributions to candidates

http://www.washingtonpost.com/politics/payday-lenders-up-their-contributions-to-candidates/2012/04/18/gIQAziioRT_story.html

You have to say there seems to be something of the night about these firms.

 

I have watched the new Consumer Financial Protection Bureau develop and the payday loan industry is one of the top targets for the newly empowered Bureau, created by the Dodd-Frank law. In January, President Obama made a recess appointment of Richard Cordray, then the Ohio attorney general, to head the agency, allowing it to begin work examining non-banks such as payday lenders.

I am hoping and believe this bureau will get to grips with the legalloansharks.We will know soon i am sure.Richard Cordray does not seem to be someone to mess about with.

 

I am also hoping that Britains new soon to be FCA is going to have the same powers as the CFPB in America,i hope so.

http://www.which.co.uk/news/2012/01/...ivered-277718/

 

The FCA will be more rigorous running checks on firms, offering greater level of investigation and more scrutiny.

The FCA will have the ability to ban products or certain features of products.

A watchdog not a lapdog.

 

Also the power the paydaylenders lawyers seem to have.

I remember this statement some time ago.

I was concerned to hear the OFT’s chief executive, Philip Collins, discussing the strength of companies’ legal teams before deciding whether to take action and the influence this has on their work.

Surely it does not come down to expense.

FCA can not come soon enough for me.Not that i am biassed.I am sure you all agree old Tawny is not biassed in his opinion of legalloansharks.

Edited April 19, 2012 by tawnyowl

[Tawnyowl]

Just a quick thought and a few questions about credit unions and their possible ability to take on the legalloansharks.

As many people do not have access to the banks for small affordable loans the legalloansharks stepped in and cleaned up.Charging whatever they liked for the loans.Now pawn shops and others on the high street have also stepped into this market.A free for all seems to have

developed.Profiting from poverty comes to mind.

 

If regulation does not come who could take them on.It hopefully will come but what if.

 

When will the credit unions link up with the post office network.Everything seems to move so slowly.Is it happening.

 

Modernisation of Credit Unions.

Debit cards,internet access many people take this for granted.Online application system.Ease of access.People like to tap away on their computers and instantly become members.Is this possible.It is expected in this day and age.

Are credit unions big enough for such a challenge.

Instead of small local offices will they have to link up to create much more powerful credit unions.

Kind of counties wide.The example-The Lancashire credit union open to all in Lancashire,or The Wiltshire,Buckinghamshire,Sussex,Norfolk,Surrey credit union and so on.Super credit unions with tens of thousands of members not just a few hundred.

Possibly linking up with each other.

Things are changing opportunity is there for the right solution.

 

I like this idea.It surely is going in the right direction.

Smarterbuys.org.uk has been launched by the social housing organisation Northern Housing Consortium (NHC) and will offer cut-price household items. To attract buyers, one national deal a month will be offered at half normal prices.

 

But the site will also lead shoppers to responsible credit from local credit unions. Traditional discount sites tend to flog high-cost credit deals.

 

Jo Boaden, chief executive of NHC, said: "payday loans and weekly payment stores offer easy borrowing, but at staggeringly high interest rates. We have created Smarterbuys as a sustainable alternative."

 

She said that the link to credit unions is crucial.

 

"Membership of a credit union can offer real benefits in terms of financial advice and support, as well as savings and low interest loans."

 

Credit unions are run as financial co-operatives owned and run by their members to help those on low incomes get affordable credit.

 

The new scheme will be promoted through tenant newsletters, websites and rent statements.

So far, 80 housing providers with one million tenants have signed up.

 

http://www.independent.co.uk/money/l...e-7643902.html

 

http://www.northern-consortium.org.u...ArticleId=1032

 

http://www.smarterbuys.org.uk/

 

From Scotland,comment about paydayloans

The Scottish National Party's Margaret Burgess

"We all know these companies are targeting the vulnerable and low paid. This should concern all of us and has got to stop – regulation is needed and it is needed now."

 

From Ireland

Northern Ireland payday lenders face investigation

A number of payday lenders in Northern Ireland are facing investigation for unfair practices.It follows undercover visits by Trading Standards.

A month-long survey of 29 loan companies in major NI towns revealed the majority of lenders do not adequately explain the consequences of failing to repay a loan on time.

Trading Standards found in every case the payday lender was unable to quote the Annual Percentage Rate (APR).

Consumer credit legislation requires lenders to tell borrowers the rate of interest they will be paying.

 

From Wales

How important credit unions are in Wales as they are everywhere.

CALLS are being made for a credit union to be established in Carmarthenshire to help families avoid using pay-day loan firms and risking falling deeper into debt.

The West Carmarthen Association of Independent Churches — which has 3,000 chapel members — has asked Cardigan-based CredCer to extend its area to cover Carmarthen and parts of the county.

"We are very concerned that people are resorting to using pawnshops and pay day loans. As the economic crisis deepens, we fear the situation will get worse," said Alun Lenny, the association's development officer.

 

Just been reading about a credit union manager who is so sick of seeing payday loan shops opening in his community he organised a protest on thursday in Wood Green .His community-led credit union offers money advice to people in Haringey, Islington and the City of London while championing the benefits of saving money, rather than seeking loans.

The manager of the credit union, Martin Groombridge, said: “The main aim of the protest is to embarrass the payday loan shops and to make sure that the government caps its interest rates.

“Wood Green is particularly bad. It has a very high concentration of payday loan shops. It is only when you start to look that you begin to realise how many there are.”

 

 

And finally Islington Credit Union declares ‘war on debt’

 

 

http://www.paydayloans.info/2012/03/24/islington-credit-union-declares-war-on-debt/

Edited April 21, 2012 by tawnyowl

[sillygirl1]

tawnyowl, I agree with the fact that credit unions need to make people more aware of their existance, if they were as good (or bad) as self publicity as the pdl companies are then they would be much more mainstream.

 

One of my friends has complained about a pdl poster stuck outside a local health centre, where they have disadvantaged groups meeting, and various members of the groups have complained too... they contacted their local MP, wrote to the local paper and wrote to the people who fill the ad shelter. I don't know what the outcome was.

 

They wanted to complain about various types of advertising but got advised to complain about each individual ad individually that upset or worrried them - a far better approach.

 

PDLs in particular are targetting the push button society who expect something at the push of a button and are not preapred to go without.

 

I have £5 until I get my JSA on Wednesday and won't be out tonight unless one of my friends pays, I wasn't out last night either, stayed in and watched a couple of good films and did some craftwork. If more people stayed in when skint these pdl companies wouldn't have a market.

 

I can understand sometimes it is essential to have some money and go out but not if it gets you into 'hock' or keeps you there longer than the enjoyment of the evening.

[Tawnyowl]

Hi Sillygirl 1

Allways nice to hear from you and always enjoy what you write.

Sometimes i expect to much.Sometimes things take time.

As for advertising PDL Companies managed, i believe to plaster TFL buses with their slogans .Perhaps you have seen that.

Ken Livingstone says he will get rid.But why does Boris not get rid.

My local football club is plastered with them .Shirts stadium everywhere.I listen to the matches on the radio.I could not bear to see footballers with that xxxx on their shirts.

The other day i had to go to a store next to the ground and looked in.Thirty foot up all round the stadium those bloody puppets.Advertising you know who.I hope they get woodworm,termites or some puppet disease.I nearly fell and broke my beak.Certainly had to brush my feathers down.Such a shock to a old bird like me.

I hope Sillygirl 1 you manage to get out for a couple of hours tonight.

You hopefully have some good mates.Perhaps hopefully one of them is feeling flush tonight and take you out for a few beers and a chippy,kebab or indian.

If more people stayed in.Yes i understand that.But when skint a few perhaps are not into that and weaken and reach for the phone.

As we have read a lot of families are borrowing just to eat and even pay the mortgage.A risky business.And so sad in our modern times.And as many know once you start borrowing you are on a slow slide into hell.But when in debt come to the CAG and many will help you and advise.And sooner or later you will come out of the tunnel that did not seem to have a light working into the sunlight.It worked for me and i was in the xxxx. Wow did i just write that.

I must admit Sillygirl1 in my youth and weak at many times i might have fallen for their slick advertising myself.

Anyway i probably have missed many thoughts i could have put down.But it is nice when someone replies.

Thankyou.Its nice to know what others think.

And i hope Sillygirl1- Bianca from Eastenders comes here for advice.She is i believe in trouble with the paydayloan ,predatory, legalloansharks.I am sure you could help her.I believe she resides in Albert Square not far from you .

Tawnyowl going for a rest.Probably some of you think i should be locked up for a while.

Strange thinking owl.

Edited April 21, 2012 by tawnyowl

[Tawnyowl]

Still time to ask your MP to vote for this amendment Monday 23 April 2012.

 

#SaveBianca! Ask your MP to vote for the End Legal Loan Sharking Amendment

This would give regulators powers to tackle the problems caused by legal loan sharking.

Crucially the new FCA will also oversee consumer credit – and have the power to act against companies who offer ‘toxic’ financial products. This amendment to Clause 22 would give this new body specific powers to cap the charges firms make for credit.

 

 

http://www.party.coop/2012/04/18/savebianca-ask-your-mp-to-vote-for-the-end-legal-loan-sharking-amendment/

Edited April 22, 2012 by tawnyowl

[Tawnyowl]

Payday loans set for parliamentary vote

 

Stella Creasy tables amendment to Financial Services bill calling for the new financial regulator to be able to set a maximum amount payday lenders can charge for credit

And there seems to be cross party support.

"There are lots of Tory MPs who are frustrated that their side is not coming up with any kind of alternative to this," Stella Creasy said. "It would be OK if the government was considering solutions, but they are not, and meanwhile more and more people are getting into difficulties with these companies."

 

 

http://www.guardian.co.uk/money/2012/apr/23/payday-loans-parliamentary-vote?CMP=twt_gu

 

Latest info i can find is-

So update- the amendment is on order paper and will be in first lot of debates around 5.30pm. No word on when vote will be though.

News as it happens.

Edited April 23, 2012 by tawnyowl

[sillygirl1]

Hopefully the MPs will see sense and vote for this, It doesn't really go far enough but it is a start.

[Tawnyowl]

Latest-

Stella Creasy amendment to give Financial Conduct Authority power to cap loan prices getting some good cross party support

 

On doorstep lenders - why not widen scope of OFT payday lending review to include Provident Financial and the like?

 

Original BIS timescale for the research into possible impact of caps on credit costs is this summer - much too late

 

Good to hear Justin Tomlinson MP calling for a limit on rollover lending during Financial Services Bill debate

 

A tribute to the Tory mps willing 2 stand up 2 legal loan sharks -let's hope by time we get vote more join them!

 

Stella Creasy urging action on high cost lenders. FCA must have teeth, Govt needs to be clear about the powers it will have.

Is the vote today.I wonder.I hope so.But wondering.

News as it happens

Tories congratulate Peter bottomley, Neil parish and Philip hollobone- brave enough to tell your whips end legal loan sharking

As sillygirl 1 said earlier

The amendment would allow regulators to cap cost of credit. This needs to go way beyond payday loansharks but v important start

 

Oh dear - Alun cairns doesn't appear to have heard minister saying price regulation could happen & argues against

 

But for the payday legalloansharks the storm clouds are gathering.

 

Cross party support for the amd.Hopefully this marks the beginning of the taming of the sharks.A long way to go.But hopefully a start.We shall see.

 

And a final comment from Stella Creasy the battling MP from Walthamstow.

Minister just again ignored calls to meet me to discuss ending legal loan sharking- Am I that scary? ;-)

What is the ministers problem.Meet.

 

So the vote may now be delayed until second day of debate as refers to later bit of bill.

Now hearing that it could be 3 weeks till the vote.Will update when i know for sure.Unless someone else knows.If you do let us know.Thanks.I suppose that would give more time to ask MPs for their vote if correct.

Edited April 24, 2012 by tawnyowl

[caro]

Those of you on facebook might like to read what Mike Dailly of Govan Law Centre has to say on PDL's. https://www.facebook.com/#!/notes/mike-dailly/gladiator-the-firm-magazine-blog/10150712147913208

[Tawnyowl]

Hi Caro.

I am not a member of facebook but sure know who Mike Dailly is.I am sure it is a interesting piece.

Here is a earlier think piece he wrote about the possibility of payday loans being the next misselling scandal.

Brought to our attention by 42man back in February.

http://www.consumeractiongroup.co.uk/forum/showthread.php?337952-Govan-law-centre-and-missold-payday-loans

I can not seem to get the link to work.It used to.Strange. So have copied the article from elsewhere

 

Payday Loans and Secured Loans on Property is the next BIG reclaim

 

 

 

Mis-selling is all over the news, with PPI at the forefront. But Mike Dailly, principal solicitor at the Govan Law Centre, who is also on the Financial Services Authority’s consumer panel, thinks payday and secured loans could be next on the hit list…

With around £9bn of payment protection insurance (PPI) mis-sold to people across the UK, mis-selling is expensive news. But there could be even more around the corner.

The common thread in PPI was fairness, or the lack of it. But what about other products? Super-expensive payday loans can be bought in the time it takes to make a cup of tea. And don’t forget the secured loan market, which resembles ‘the good, the bad and the ugly’.

Have these been mis-sold on a big scale? My answer would be yes. But how can people stuck with these loans get redress?

The gateway for consumer PPI redress was the Financial Services Authority’s focus on the principles of how a firm should act, as opposed to hard and fast rules susceptible to contractual loop holes. More of an art than a science.

Remember the Office of Fair Trading’s (OFT) failed challenge to bank charges? It lost on a narrow bit of the Unfair Terms in Consumer Contract Regulations.

Because the banks were able to establish charges were a contractual fee for a package of services, the regulations didn’t bite.

Contrast this result with mis-sold PPI, where lenders’ clever arguments didn’t wash because of the FSA’s change of approach.

How this applies to other loans

Consumer credit is regulated by the OFT under the Consumer Credit Act (CCA). Changes from April 2007 effectively introduced a ‘principle-based’ approach to consumer credit in relation to treating customers fairly.

Could these changes open the door for consumers to get redress when credit is mis-sold? They certainly could.

The ‘unfair relationships test’ in the CCA requires a customer’s credit agreement and the way it is enforced to be fair.

But it also covers anything done — or not done — by the lender before or after the agreement is made. There’s also no definition of “unfair” in the CCA, so fairness is construed widely.

Unsuitable loans

What might this mean? Here’s a typical example.

The Smiths are sold a second secured loan by a finance company. The interest was 11% over 10 years, and Mr Smith was 63 and Mrs Smith 65 at the time.

Two years on, they have retired, their income has dropped and they can’t pay the loan. Now, Mr Smith is 67 and Mrs Smith is 69 and they have only been able to afford part of the payments. Repossession is looming.

Were the Smiths mis-sold? They might argue:

 

• Any creditor selling a loan should exercise reasonable care. They should assess whether a customer can afford to keep their payments up throughout the lifetime of the loan.
  
• As retirement was imminent, the company should have acknowledged the Smiths would struggle to pay the loan back once their income dropped. It should have advised them the product was unsuitable, and likely to result in repossession.
  

Now let’s take a second example. Judy has a full-time job but can’t access affordable credit.

She takes out a payday loan for car repairs. She does this online and it’s approved in 15 minutes.

The lending criteria was some form of employment. She borrows £100 for one month at a cost of £42.96. She is again short of cash and is offered a ‘roll-over’ to the next month with an extra charge.

She keeps rolling over the loan and is liable to pay £400 back in total.

What could Judy argue?

 

• There was no proper affordability check as the online payday lending took place instantly.
  
• No fair assessment was given of the suitability of the loan and the consequences of not settling within the contractual term.
  
• Instantly selling a very high APR payday loan, without a cooling-off period, took advantage of a vulnerable consumer.
  

What can I do about it?

To get redress under the Consumer Credit Act, consumers can go to court. The court has wide powers where it considers a relationship to be unfair, including altering the terms of the agreement and reducing any sum payable under the agreement. But most consumers won’t have the time, money or energy to go to court.

So now the Financial Ombudsman Service, an independent adjudicator, can deal with such consumer credit complaints.

It determines complaints on the basis of what is “fair and reasonable in all the circumstances of the case”, making it perfectly placed to deal with payday and secured loans. This could be a more accessible form of redress for borrowers who think they’ve been wronged.

Should lenders’ alarm bells be ringing? I think so.

 

If i was a legalloanshark paydaylender i would be spluttering over my cornflakes this morning if that is on their diet.

Perhaps they only eat raw meat or fish.A huge tuna perhaps or half a sheep.

Perhaps the time is coming for them to plan their retreat.

Cross party support is building.Nice one.

Rumbled.

Early days but things are changing in the corridors of power.

And maybe soon in the tumultuous stormy seas where the sharks reside and profit from poverty.

Britain begins to bite back comes to mind.

Maybe soon legalloansharks the profits you are making from poverty that you jet out of town with will soon dwindle away.

Perhaps soon all you will need is a rowing boat and your cases.

Hopefully.

I do not mean to appear biassed ,honestly.

Edited April 24, 2012 by tawnyowl

[sillygirl1]

Two useful bits of legislation to use against the PDLs there, will post more later but in a rush this morning, DWP 'Electronic Job Hunting' seminar to go to 10-4 with free lunch.

[Tawnyowl]

Who finances payday lenders in Britain.

How many payday lenders are financed by the banks.

Who is helping them to rip the British people off.

They have also ripped the American people off.

They should be made to pay for the troubles they have caused to communities.

They targeted people like the predators they are just as the subprimers did.

I will never forget the way Americans were targeted by subprimers in places like Detroit.

Similar now but on a smaller scale.

In some of the poorest areas.And still are.

Many of the sharks are from foreign shores or maybe financed by their banks.

The banks are reluctant to lend to many including business and private individuals but lending to the sharks seems to be no problem.

Here is a American article

How the Major Banks Finance Payday Lending Companies

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

Major banks access credit from the Federal Reserve at 0.5% or less, these banks extend an estimated $1.5 Billion annually to eight major payday lending companies, who in turn use this credit to issue millions of payday loans to consumers every year at average rates of 400% APR.

Why would the banks lend to the normal person in the street or perhaps a small business when they can make a better return by keeping that part of the market in the hands of the sharks and make a nice little earner for the shareholders.With next to no risk.

Maybe i am looking at this the wrong way but it makes you wonder.

I will never trust a bank again after the charges fiasco.And the subprime chaos etc etc etc

 

A american trapped by the legalloansharks manages with help to escape their clutches with a little help.

Mitzi Rivers-Singleton and her experience with Payday Lenders

http://www.youtube.com/watch?v=2yQA5i-wmec&feature=player_embedded#!

 

And here is a article showing how Britain has been targeted by the legalloan sharks.By predators who knew what a easy non regulated country this is.Welcome sharks seemed to be the cry from the powers to be.Apart from a few including Stella Creasy MP for Walthamstow who saw through it all and the damage being caused to her community and round the country and is putting up a battle against them. All parties should now support her and finally act against the sharks and the high

interest rip off market as one.

Stella Creasy tables amendment to Financial Services bill calling for the new financial regulator to be able to set a maximum amount payday lenders can charge for credit.When the vote comes in a couple of weeks or whenever i hope all MPs will vote with her on the amendment.How could they not.Are they puppets of the powerful ones or is it time to do what their hearts maybe want them to do. It would be a good start.

Payday sector in search of new frontier

http://www.ft.com/cms/s/0/e52da39e-2011-11e1-8462-00144feabdc0.html#axzz1t7ZuvVf6

You can bet the demographic patterns in Britain like America would indicate that payday lending, like their cousin the subprime mortgage, preyed on the desperation of poor and “underbanked” communities where fairer loan products are simply unavailable. They are now being abandoned by mainstream credit markets. Even among those living payday to payday, the predatory lending system has still found ingenious ways to squeeze more money out of people with virtually nothing.

Once again what alternative is there at the moment.The only glint of hope is that credit unions must power up,link up with each other and the post office network and become a force to reckon with.And somehow perhaps through mass advertising attract new members.I have never had a leaflet through my door suggesting joining a local credit union.Have you.But just in case someone wants to join one link here.

A few are offering payday loans now to their members.

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

I apologise if i seem to go on a bit.I feel somewhat annoyed with the legalloansharks.I fully understand some will not agree with how i think.Its a free country and feel welcome to have a go if you want to.I look forward to,and respect anyones opinion.

 

And any councils,landlords,housing providers that may be able to help the credit unions,tenants etc have a read of thishttp://www.independent.co.uk/money/l...e-7643902.html

 

http://www.northern-consortium.org.u...ArticleId=1032

 

http://www.smarterbuys.org.uk/

To me the offer available through the new smarterbuy that is trying to fight the high interest rip off market seems a brilliant idea.Once a month a great deal is offered.What do you think.And is also publicising the credit unions.And helping tenants and the public.Any opinions.

And here is the link to join your credit union to access the finance.It may take a few weeks but in the end must be worth it.

http://www.smarterbuys.org.uk/credit

Edited April 26, 2012 by tawnyowl

[Tawnyowl]

Did i miss something the other night.Stella Creasy tables amendment to Financial Services bill calling for the new financial regulator to be able to set a maximum amount payday lenders can charge for credit.

I was waiting for a vote.Then i thought the vote was going to take place in a couple of weeks.

I have just read this

http://www.dailyecho.co.uk/news/9669241.MP_vows_to_crack_down_on__pay_day__loan_companies/r/?ref=rss

 

Labour MP Stella Creasy attempted to amend the bill to allow the authorities to set a maximum price for some products and impose limits on the supply of credit to a consumer.

But Mr Hoban told MPs the measure was not necessary, adding: “The Treasury is confident that a range of powers is in place to help people in respect of payday lenders and high-cost lenders.”

 

So is that it.Was it dismissed.

I was expecting a right set to.Or have i missed something.Kind of confused.

There seems to be a missing link.

A success a amendment was granted surely.

As someone once said " i cant believe it"

I must have missed something or got confused with a earlier application.

Who knows exactly what happened.On 23rd april

It has gone so quiet.

Did a vote take place or is it in a couple of weeks.

A bit more info-

http://www.publications.parliament.uk/pa/cm201212/cmhansrd/cm120423/debtext/120423-0003.htm

As Stella Creasy said

Will the hon. Gentleman enlighten the House on his concern about the expertise of the FCA and its ability to exercise the powers granted by the amendment? The amendment simply gives the FCA those powers; it does not direct it to use them automatically. I should also like to know why he was concerned by what the Minister said earlier about his support for the use of price regulation.

And as Mr Hoban said

Mr Hoban: I do not think this needs regulatory action. I think it is in the interests of lenders to provide the right information to their borrowers to enable them to plan ahead, however, because it is not in the interests of lenders for borrowers to fall into arrears as a consequence of increases in interest rates. That is why it is important that potential changes in interest rates are considered in lending decisions and that information is available to help borrowers to think about the impact on their circumstances of changes in interest rates. I do not believe that is necessarily a regulatory matter; rather, I think it is in the interests of firms and their borrowers that such information be available.

On the issue of consumer credit, I do not think amendment 40 is necessary. The Treasury is confident that a range of powers is in place to help people in respect of payday lenders and high-cost lenders. I do not believe new clause 10 is necessary either, but I think it is in the interests of lenders to ensure that the information in question is available.

Well i just hope the FCA will be powerful enough.

As was said a while ago about the new FCA

However, to succeed the FCA will also need new and stronger powers to be granted by Parliament.

http://www.fsa.gov.uk/library/communication/speeches/2011/0302_hs.shtml

As in America the new CFPB will hopefully be

http://www.consumerfinance.gov/the-bureau/

We need bulldogs not lapdogs

On another note i have noticed Bianca on Eastenders is getting a bit ov bovver from the legaloansharks.I noticed on her mobile the other night a message saying a 30 quid charge had been added.Not that i watch it much.Not half.

I think she needs a bit of help.She lives on Albert square Walford.I believe a few of you live in that direction.

She may ask for some advice soon.Sillygirl1 lives the nearest i believe.Maybe Caro does as well.Do not worry Bianca the CAG will help you.Just ask.We are waiting.

Tawnyowl is going to answer the door there are men with white coats wanting to speak to me.Bye for now.I will return after a day or two in a darkened room.So they are saying.

Edited April 26, 2012 by tawnyowl

[renegadeimp]

You need to remember, one of the main owners of a group of PDL's was one of the biggest contributors to the Conservative Party. It's not surprising that this got ignored.

[Tawnyowl]

Payday loans are 'misunderstood'? This research lacks credibility

 

http://www.guardian.co.uk/money/blog/2012/apr/26/payday-loans-misunderstood-research-lacks-credibility?CMP=twt_gu

: Payday lenders always claim their customers are highly satisfied with their service, and have long complained that their most vehement critics are affluent people who are unlikely ever to be hard up and therefore have never taken out a payday loan.

Plenty of critics on here that have taken out loans from the legalloan sharks

Vehement --sure am

Affluent--- No not yet waiting for the lottery

Edited April 27, 2012 by tawnyowl

[sillygirl1]

I agree that the Money Shop is NOT typical of most mainstream payday lending, they operate by taking blank cheques from customers, they are no way at all representative of the type of lender we get complaints about here.

 

The fact that we have almost NO complaints about them speaks for itself (a nephew works for them and my sister would not have let him work there if it had been Wonga or one of the more 'popular' lenders).

 

This obvious piece of one sided biased research was created to prove the opposite of what is actually happening in the marketplace - that the likes of Minicredit, Toothfairy (and its sub companies), Wageday Advance, Payday Express are all hopeless at times.

[sillygirl1]

Has anyone heard the news that Marshall Hoares Bailiffs, part of the Toothfairy unholy trinity (the other company being NDR), are no longer trading, their acounts have been filed to the end of December. They are not registered on the Ministry of Justice site either...

 

Using bailiffs to collect common commerical debt is wrong, it is actually ensrhined in law that a bailiff cannot use his bailiff powers if the debt has not been to court.

[Tawnyowl]

I think i have finally cleared my misunderstanding of what was the result the other day.

I have just been to Stella Creasys site and found some news about the vote.

As i feel it is such a important vote for many reasons i will paste the latest i can find.

There are some interesting points.

Here is a taster

The vote on this amendment – which has been labelled the #savebianca amendment following the storyline in the soap opera EastEnders about a character’s problems with debt – will take place in mid May. It has been tabled jointly by MPs from five parties, including Conservative MPs Philip Hollobone, Sir Peter Bottomley and Neil Parish.

Right here is the article

Government legislative somersaults risk legal loan shark lawyers’ fees bonanza

 

 

Stella calls on Government to publish advice on legal loan sharks

As the battle continues to end legal loan sharking in the UK, Walthamstow MP Stella Creasy today challenged Government ministers to publish their legal advice on the powers of the proposed Financial Conduct Authority. This follows extraordinary scenes in Parliament where ministers agreed that the new consumer credit regulator should be able to cap the costs of credit but refused to back a cross-party amendment to secure those powers for the body.

During a debate on the Financial Services Bill, ministers refused to accept an amendment to ensure the regulator would have the formal power to cap the costs of credit to help tackle legal loan sharking in the UK. They did this despite arguing that the regulator should attempt to use this power. This follows legal advice procured by Consumer organisation Which? and presented to the Treasury Select Committee which stated without such explicit powers in the legislation, the new regulator of consumer credit will be open to legal challenge if it attempted to cap the costs of credit.

When questioned by Stella Creasy, who has been leading a campaign for an end to legal loan sharking for two years, the minister refused to say whether he had alternative legal advice on the draft legislation. Speaking after the debate and ahead of the vote on this proposal Stella said:

‘The lawyers are clear – without explicit authority to cap the charges that these companies levy, there is a risk the new regulator won’t be able to tackle these firms as they will contest any such action in the courts. This could lead to lengthy court cases and costs for the public purse – and delay in taking action on legal loan sharking. 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.

‘Given the minister says he wants the new body to be able to do this his refusal to accept this amendment seems bizarre – no wonder Tory backbenchers have had enough of this and are rebelling to support this proposal. When the amendment comes before the House for a vote in a few weeks’ time I hope his colleagues will listen to their constituents and colleagues and vote to give the new consumer regulator real powers. As my colleague Yvonne Fovargue said, the FCA should be a watchdog not a lapdog. The millions of Britons now in financial difficulty as a result of these legal loan sharks deserve proper protection – our campaign continues to end legal loan sharking!’

The vote on this amendment – which has been labelled the #savebianca amendment following the storyline in the soap opera EastEnders about a character’s problems with debt – will take place in mid May. It has been tabled jointly by MPs from five parties, including Conservative MPs Philip Hollobone, Sir Peter Bottomley and Neil Parish.

Notes:

1) Last year the payday loan sector in Britain was worth £1.7bn, a fivefold increase in the last few years. Research by R3 predicts nearly 4 million people will take out a payday loan in the next six months alone. The APR for payday lenders can begin at 444% and can escalate to 16,500% or more. And home credit lenders, who make home visits in order to collect repayments for their short-term loans, can charge £82 in interest and collection charges for every £100 lent.

2) Payplan, a debt charity company, says that 47% of its clients had six or more payday loans in the last year alone. This is not a short-term temporary measure; this is a way of life for millions of people in our country nowadays. More than half of the people going to Payplan for debt advice owed more than £500 to these companies, and 61% had more than one at a time. Most crucially, 86% of its clients were using the loans for basics—food, transport and the basic costs of everyday living, not luxuries.

3) Transcript from Monday’s debate:

Stella Creasy (Walthamstow, Labour)

‘There is genuine concern about the view of lawyers that unless the power is explicit, it will be open to challenge. Will the Minister publish the legal advice that he has had to the contrary, supporting his assessment that the power in amendment 40 could enable prices to be capped as part of action on consumer detriment?’

Mark Hoban (Financial Secretary, HM Treasury; Fareham, Conservative)

‘I am certain that the FCA’s broad range of powers will enable it to do that. It can use its powers in pursuit of its consumer protection objectives. However, those are not the only powers that are available.’

 

4)In their evidence to the Treasury Select Committee on the proposed new Financial Conduct Authority Which? quoted their barrister, John Odgers, as follows:

‘It seems to me to be desirable that a power of price intervention should be spelled out, if it is intended. Financial services regulators have not in this jurisdiction previously exercised that type of power, and might in future be loath to do so without a specific statutory authority, as the use of such a power would be particularly likely to attract a challenge.’

5) In his evidence to the Public Accounts Committee on the 5 September 2011 regarding regulatory action Philip Collins, the Chair of the OFT stated

‘There are companies now pursuing particular practices that 10 or 15 years ago perhaps would not have employed the most expensive lawyers and taken every point under the sun. Now, however, that is happening with an increasing number of cases where you might have otherwise expected the party to throw in the towel after the first round. They do not do that, and therefore we have to take very careful assessments. We have a particular case at the moment that I have in mind where, much to my surprise, the parties have involved the most expensive City lawyers, and we know perfectly well that we are at substantial risks on costs if we lose.’

6) The MPs who have co-signed Amendment 40 to the Financial Services Bill are:

 

• 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.

 

Here is another article about the night Mark Hoban did not get it right.My view and do not mean to offend or distress anyone.

http://www.newstatesman.com/blogs/economics/2012/04/payday-lenders-should-be-regulated

 

The FCA must have the power to act.The lawyers and barristers of the powerful legalloansharks if the power is not explicit will keep challengers in court for years.

And as the oft said- 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.

 

How did i get so passionately involved in this.I am only a semi retired construction worker trying to make a living in a double dip recession. Not the first one i have been through.Also now have a dodgy ticker. My eyes are stinging my brain is,well i wont say.It is a long time since i was at school.But i am in it and hopefully in time will see that this is the right thing and change will come.

 

Interesting action from Islington council.

The Council and its partners will assist people to learn about and to make use of lower cost alternatives of credit available, which meet the needs of those who are vulnerable to problem debt. This will include, for example, improving operating processes to provide similar services to payday loan companies.

We will work with the Haringey, Islington & City Credit Union to increase its lending capacity by increasing the number of people who save with the Credit Union by setting up payroll saving facilities with businesses.

 

 

• Develop the debt brokerage service which assists residents in debt to consolidate any indebtedness to the council into one payment;
  
• Continue to provide support to people in debt through, for example, offering payment plans for residents in council tax arrears;
  
• Increase the number of people saving with the Islington Credit Union to 2,700 so that it has more money available to lend.
  
• Develop a model for providing short term loans and offer same day money transfer option to its customers which will provide an alternative form of credit to that of payday loan companies;
  
• Conduct a regulatory compliance investigation into all businesses that offer pawn broking, gold buying and pay day loans
  

Edited April 27, 2012 by tawnyowl

[Tawnyowl]

I understand many people have had difficulty cancelling continuous payment authority with their banks.And also has caused trouble between you, the banks and the legalloansharks and caused stress to you.

Well there is some news.Mike Dailly of the Govan Law Centre seems to have stirred things up.Along with Bob Howard of the BBCs Moneybox

Latest news here

http://www.bbc.co.uk/news/business-17870704

And on Sequencis thread-here

http://www.consumeractiongroup.co.uk/forum/showthread.php?336569-How-to-remove-a-lender-s-continuous-payment-authority/page4

And some latest news from the Govan Law Centre

http://govanlc.blogspot.co.uk/2012/04/banks-deny-customers-rights-over.html

If you want to just press the listen button-save you reading the story.

Edited April 28, 2012 by tawnyowl