Anyone who has or is thinking of a Payday loan should read this-It could affect your financial future

[MARTIN3030]

Experian planning to add payday loans to CRFs but will be recording data differently to other FSPs

 

Banks admit that having or applying for Payday loans isl likely to see rejection for loans even years after.

Mortgage applications are likely to be affected.

 

 

http://www.dailymail.co.uk/money/cardsloans/article-2231040/Payday-borrowers-face-Christmas-credit-shock.html

[Blossom99]

So what does that mean for someone like me who took them out in 2011 but has now paid them all off this year? Or is it more towards people who take them out now? Dont quite follow, excuse my ignorance

[sillygirl1]

A lot of PDL companies clearly state on their advertising that they can help rebuild your credit rating - and yet this article shows otherwise.

 

The OFT need to stipulate that one company one trading name is the normal for its licence, to stop them flooding the market with names set up for 3 months or so to cloud who is behind them, also the multiple trading names could be hiding money laundering amongst the 'venture capital investors'.

[MARTIN3030]

It is interesting to see there is clearly animosity between the Banks and Payday loan members.

 

 

Are the Banks fighting back because Payday loans has cost them lost business ?

 

 

Should they have been offering overdrafts or extended ones to grab a slice of the demands ?

 

 

We know that the Banks themselves have had to deal with lots of complaints in respect of the Payday loans companies,in particular where unauthorised payments have been taken from accounts.

 

 

I believe also that the Banks are frustrated at the lack of tougher regulations that they see with Payday Loan Companies,whilst the Banks have been faced with lots of new ones in the last 18 months.

 

 

It is a misconception also that the Banks are funding PDL companies.To the contrary,they are funded in the main by venture capitalists from outside UK.

US consumers are known to have turned their backs on PDL companies and log book loans long ago.

 

 

Regulations from Consumer Protection agencies are much stricter in the US than here.

 

 

It seems that the US sees the UK as a soft market for these businesses,since 99% of the PDL firms are US based,with quite a few having no Registered offices here,but using secretarial services for the purpose.

 

 

The OFT have a lot to answer for because they continue to grant new Consumer Credit licences.Last week I saw one pending application from an individual who had 17 different named PDL Co's as associated trading styles.

We know that there are some with up to 30.

 

 

Many of these firms have no identifiers on their website,or contact addresses which can make it almost impossible to know who they are.

 

On one website I saw that the Postcode had been deliberately masked by an icon which prevented viewing it.

 

If the new measures by CRAs and the stance taken by the Banks and Mortgage providers spurs people into thinking twice about taking out a payday loan,then for many it could be a good thing.

 

 

I see that the Payday loan companies are screaming unfairness but this is not unexpected.

 

 

As usual they are in self denial that no problems exist.

 

 

If the regulators and Parliament are unable to curb these sharks,then the Banks should be commended for taking them on.

 

 

It is obviously a bad move for all those who have taken out Payday loans,but there has to be a starting point in tackling further growth.

Edited November 12, 2012 by citizenB
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[MARTIN3030]

The report clearly suggests that PDL Co claims that taking out a loan with them could see benefits to credit standing.

Since this is not the case,it could therefore invite complaints to the ASA and also Trading Standards under CPUTR2008.

 

It would be good to know which of these firms have been guilty of stating these untruths.

Does anyone have any examples/names ?

[citizenB]

http://www.consumeractiongroup.co.uk/forum/content.php?914-Loan-sharks

 

Please read the article above and help Stella Creasey's campaign to sort out these PDL companies, by sending emails to the Lords and Baronesses who are going to vote on a crucial amendment at the end of this month.

[sillygirl1]

Wonga

Wageday Express (leave lots of 'markers' on the searches)

 

to name two - I am sure there are others

[Super Daz]

I've recently had a mortgage refused, the mortgage broker said its because I have payday loans on my credit file.

Asided from they they have almost cost me my marriage (when the Mrs found out), my job (because they kept calling my work on an emergency only number & refused to stop) and my sanity.

My credit file is now messed up for years to come because of these horrid things - they should all be shut down.

[sillygirl1]

Shouldn't the CRAs come under fire too, for reporting short term loans over a long period - I still think the Statute of Limitations should be 3 years for EVERYTHING, then the poor of this country might be able to pick itself up and move on - at the moment it is not worth the effort because of the financial exclusion system.

 

The Government itself is not helping, by allowing the financial industry to become THE main industry creating wealth for the few at the top and NOT wealth for everyone.

[jtemen]

The report clearly suggests that PDL Co claims that taking out a loan with them could see benefits to credit standing.

Since this is not the case,it could therefore invite complaints to the ASA and also Trading Standards under CPUTR2008.

 

It would be good to know which of these firms have been guilty of stating these untruths.

Does anyone have any examples/names ?

 

I can't post links but if you go to paydayuk's website from about October 2011 via waybackmachine it was there.

[Nao]

The report clearly suggests that PDL Co claims that taking out a loan with them could see benefits to credit standing.

Since this is not the case,it could therefore invite complaints to the ASA and also Trading Standards under CPUTR2008.

 

According to the first post this so far it is only experian that will do it, wouldn't that leave a loophole as experian is not the only credit reference agency?

 

Anyway, in my opinion the whole credit record system is rotten to the core and in urgent need of a total overhaul anyway.

[HelFl]

My husband used these companies to pay for his gambling addiction. I believe he has now paid it all back, but it has meant that the family has had to go without so much over the 18 months that it has taken to clear them. Fortunately he eventually took onboard the advice to contact the three companies involved and they froze his interest payments

I have worked so hard to keep my credit record clear and he can wreck it in one foul swoop with stupidity. He was unable to pay the debts so he was taking out new loans weekly to clear the previous debts, plus a little bit more.

[TokSik]

This type of action could arguably be construed as "discrimination" contrary to (Human Rights Act) Article 14: Prohibition of discrimination under the heading "and any other discrimination"

[walkerclub]

I find this thread rather hypocritical when it has at least three adverts at the top of the page offering payday loans

[citizenB]

I find this thread rather hypocritical when it has at least three adverts at the top of the page offering payday loans

 

You will only see the advertisements if you are NOT logged in.

CAG is at the mercy of Google with regards to the advertisements - as the ads are linked to the content of a thread/post..

[walkerclub]

You will only see the advertisements if you are NOT logged in.

CAG is at the mercy of Google with regards to the advertisements - as the ads are linked to the content of a thread/post..

 

I am logged in ,but can still see the adverts.Point taken on Google though.

[Slidingsash]

I read this article and thought it smacked of inaccurate journalism.

 

Experian can only add credit file information from Payday loan companies if these companies use Experian for credit search purposes and report payment history details to them.

If they are just used for a search, then banks will see someone has applied for a loan but not if it's been granted, as with any other search from any company. Experian holds search data for 12 months as does I believe Equifax, after which it will drop off the report.

Callcredit already reports on Payday loan companies such as Quickquid. Search details are held for 2 years with Callcredit and payment history for 6 years.

 

The banks are being disingenuous. I've used Quickquid quite a few times over the years and because my history with them is good, pay £7 interest per £50 borrowed. Still quite a lot but the convenience and rapid payment into my account (10 minutes) is worth it.

I acknowledge the problems start if you can't pay back at the end of the month and continually 'roll over' and suggest this is one area where the powers that be could look into regulating.

[2009dg]

My PDLs are listed on my credit file as well as searches. Their license name rather than there 'brand' name though (if different), listed as 'Advance Against Wages' i.e Micro Credit, Quickbridge,

[gandalf haggins]

I work with credit files for a living, and PDL's are now having a significant impact on people's credit histories. Experian has not to date revealed the truth that they are creating poor credit scores, but this is no doubt due to them not wanting to upset the several PDL sharing deals it has with the lenders. You can only imagine what would happen if they were to start informing people that the likes of Wonga etc were damaging them, as they'd lose the contract so they say nothing. I can guarrantee you that I have NEVER seen an excellent CRA score when there is a visible PDL visible in the recent report.