Govan law centre and 'missold' payday loans

[42man]

Very interesting reading - http://www.govanlc.com/MissellingCC.pdf

[Tawnyowl]

Very interesting indeed.Nice one 42man.Sure is a think piece.Been back to it 3 times.Could be a headache building for the paydayloan industry.I hope

[Tawnyowl]

I have just been looking at who Mike Dailly is.

Mike Dailly is the Principal Solicitor of Glasgow's Govan Law Centre[1] and Govanhill Law Centre - free UK community legal resources.[2]

He has campaigned on a wide range of United Kingdom social justice and access to justice issues, including unfair UK bank charges,[3] the prevention of homelessness,[4] debt law,[5] public law and democracy issues.[6]

He has drafted progressive legislation in the Scottish Parliament[7] and House of Commons of the United Kingdom.[citation needed]

Govan Law Centre is part of the law centre movement.

 

Anyone who can write a think piece like that has to be looked at and taken seriously.

As for my opinion which i suppose is somewhat biassed.

I class payday lenders and the whole high interest market as some say nothing short of legalloansharks.

Targeted predatory lending is their speciality.

In America when regulation caps, ban on rollovers came in places they wriggled round like ferrets in a sack

finding their way round regulation.

They crowded round American military bases till their effect was so bad to the military they were capped.

And now they are here.

They are powerful organisations with money to burn and possibly influence in high places with donations that dont make sense to give for any other reason

 

.

They gather up the profits that wont be spent locally apart from a few sweeteners in high profile advertising.Pick up the profits and jet out of town.

 

Local communities dont benefit from them long term because their fees etc will rob a community in time of money that would have been spent locally.

 

Thats my opinion and i expect some reaction.Many agree many will disagree

.

How many of you have felt perhaps you have been misold a paydayloan.

EXAMPLE-from the article.

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.
  

 

 

Mike Dailly works as an employee of a community law centre that's a registered charity. They provide legal services to consumers free at the point of delivery. They advocate self-help and work to empower people. They don't recommend hiring a lawyer in mis-selling cases or worse still CMCs. There's no need.

 

As regards other posts suggesting reclaiming mis-sold products will put costs up for everyone else it's important to recognise that what people are asking for is to be put back to their original position; where they have been treated unfairly, it's their money that they would like back please, no-one elses.

 

The last part was copied of another forum where different opinions are flying backwards and forwards.

Could this be the next big misselling scandal.

A very interesting article that i am sure will provide many interesting views.