MoneyLender Closed Down

[RobbingHood]

Not sure if this is old news to most of you guys now, but if you visit the MoneyLender website there's a message on there saying they've ceased trading and written off all outstanding loans - so good news if you have an outstanding loan with them!

[renegadeimp]

http://www.consumeractiongroup.co.uk/forum/showthread.php?360613-Website-Announcement-from-Moneylender-Ltd

 

Sure is good news, but it gets you thinking about whats happening behind the scenes.

[RobbingHood]

True, however I also think its a sign of what's happening in this market. Whilst I don't agree with a lot of what some of these companies do, this is also a clear sign of the amount of people taking these loans out and simply not paying them back, forcing these businesses to close.

 

Just reading on here there are too many people who take out these loans then conveniently lose their jobs the day after (or similar) when the truth is they just dont want to pay the loan back or pay it in one lump sum so look for a way out or to split the payment over several months.

 

I can't help but think that's sometimes it's people like this that drives the industry to be the way it is? I think the culture of the borrower needs to change also, you can't borrow money and simply not expect to pay it back and expect a 12 month payment plan on a £100 loan.

 

From what I know of the industry, lenders really have tightened their criteria for borrowers now and these loans are going to be increasingly less available for people with bad credit over the next few months.

 

That said, some of the unscrupulous lenders out there give a bad name to the industry and should be shut down immediately.

 

Just a thought that's all, I guess it's a double edged sword.

[Jamie Kingston]

Robbinghood - you make valuable points, will be interesting to see your posts over the coming months. Welcome.

[Old Cogger]

Rip off merchants - why are they able to trade under licence, then so called investigations into back street traders with high interest rates, who has their hand in the merchants pockets = Banks?????? I wonder.

[paxon]

..

Edited August 8, 2012 by paxon
read wrong

[Bombaymix]

Robinghood, agreed, you make SOME good points.

 

I'm sure in many cases it's far from "convenient" the borrower losing their job and not being able to pay.

 

All boils down to the 'can't pays' and the 'won't pays'.

 

This Market targets those with poor credit history, they loan people that can't get loans from the high street. They must know the risks associated with this.

 

I for one am happy that this payday lender has ceased trading. I have had no dealing with this particular company but unfortunately have had dealings with a few others.

 

I never took out any of my loans and conveniently lost my job the next day... Maybe I'm one of the lucky ones? I did however get into financial difficulty (after paying rollover/extension charges for many months - all of them more than covering the original loan amount, some, many times over).

 

Read round the forums here. A lot of us had our Hour of need and could have done with a little breathing space from these companies. I won't deny, we all knew what we were signing up to when we took out the loans... Things happen, things change.

 

If they ALL go bust - good. You won't find many stories on these forums with payday loans having a happy ending.

[Jamie Kingston]

you'll find more happy endings in your local massage parlour!

[Welshy27]

You definitely make some interesting points RHood about people's true intentions when taking out these loans and have always echoed that they are businesses at the end of the day. I will openly admit that I resorted to taking out loans to fund a gambling addiction that I developed due to becoming depressed because of a chronic illness. However, I did have every intention of paying them back on time which I initially did but at a cost of rolling them over or repaying and immediately taking out new ones. This went on a few months until my health gradually improved and I kicked the gambling and decided to face up to the debt that I had got myself in.

 

I found these forums and they were of great help in informing me about the default process and how to set up repayment plans. I'm back in control of my finances and will not shy away from the responsibility that I have in repaying these loans off efficiently (3 in total - two defaulted and one ongoing) - on the basis of loan and one months interest. Any additional extortionate charges added should of course be disputed because this is one thing that these companies shouldn't be doing. Going back to the first point though, I do think some people want to try and shy away or play the naive victim when it all catches up on them - normally because they have buried their head in the sand and have not dealt with the situation by showing willingness to communicate.

[RobbingHood]

Don't get me wrong guys I am not at all saying everyone takes out these loans and makes up stories about why they can't pay them, I appreciate that at times people do genuinely fall into hardship.

 

However I just feel that perhaps the "won't pay" category outweighs the "can't pay" which then pushes the industry to start using desperate measures just to get some money back.

 

I have been a reader on here for a long time and know all about the difficulties in dealing with these companies. Thankfully like you I've turned things around for the better and I hope to be able to share some of my experience on here. I just wanted to offer a different opinion as opposed to the same advice which is generally repeated over and over on these forums.

 

Undoubtably there is some excellent advice being given out from the regular posters.