Jump to content


Tell the payday lenders they're fired! Lord Sugar blasts the legal loan sharks


Please note that this topic has not had any new posts for the last 2924 days.

If you are trying to post a different story then you should start your own new thread. Posting on this thread is likely to mean that you won't get the help and advice that you need.

If you are trying to post information which is relevant to the story in this thread then please flag it up to the site team and they will allow you to post.

Thank you

Recommended Posts

Lord Sugar wades into the PayDay loan trap..

 

 

Payday loan companies and short-term high-interest lenders such as Wonga have, regrettably, become part of our everyday life.

 

Last year I backed the Mirror’s campaign to End Legal Loan Sharking and warned people against the danger of pre-payday cheque-cashing firms in my book, The Way I See It.

 

I wrote: “The interest rates are ridiculous and, again, people get stuck on a treadmill where they have to pay back outrageous amounts of money for a piddling £100-200 advance against their salary.”

 

In recent years it’s estimated that the volume of loans by payday lenders in Britain – from both foreign and home-grown firms – has more than doubled to £1.8billion.

 

Another reason for the surge of payday lenders is not just the demand but also the supply.

 

Tighter regulations in the US have meant that many payday lenders have targeted the UK.

 

Nearly half of states in the US have legislated to make payday lenders less profitable with steps such as capping their interest rates.

 

The American state of Georgia has even banned payday lending under the “cash for cheques” system.

 

Loans of less than $3,000 are covered under the Georgia Industrial Loans Act, which limits smaller loans from individuals or companies to an interest rate of no more than 8%. Loan companies also need a licence to operate in the state.

 

It is clear that companies are having a field day in the UK where they don’t have to abide by tough laws like that – and all of this at the expense of some of the most financially vulnerable people in our country.

 

This is why the amendment to the Finance Bill being put forward today by my fellow Labour peer Lord Parry Mitchell is so important.

 

This Labour amendment aims to give the Finance Conduct Authority (FCA) the power to place a cap on the total cost of any loan if it judges that that loan will cause detriment to the consumer.

 

Giving the FCA the power to set guidelines on the impact of lenders’ behaviour on consumers is essential to protect the public from unfair practices and the never-ending cycle of debt. It introduces a much-needed sense of fairness to the lending process.

 

Read more.. http://www.mirror.co.uk/money/personal-finance/lord-sugar-blasts-legal-loan-1460508

Have we helped you ...?         Please Donate button to the Consumer Action Group

 

Uploading documents to CAG ** Instructions **

 

Looking for a draft letter? Use the CAG Library

Dealing with Customer Service Departments? - read the CAG Guide first

 

1: Making a PPI claim ? - Q & A's and spreadsheets for single premium policy - HERE

2: Take back control of your finances - Debt Diaries

3: Feel Bullied by Creditors or Debt Collectors? Read Here

4: Staying Calm About Debt  Read Here

5: Forum rules - These have been updated - Please Read

 

 

BCOBS

 

2: Does your Bank play fair - You can force your Bank to play Fair with you

3: Banking Conduct of Business Regulations - The Hidden Rules

4: BCOBS and Unfair Treatment - Common Examples of Banks Behaving Badly

5: Fair Treatment for Credit Card Holders and Borrowers - COBS

 

Advice & opinions given by citizenb are personal, are not endorsed by Consumer Action Group or Bank Action Group, and are offered informally, without prejudice & without liability. Your decisions and actions are your own, and should you be in any doubt, you are advised to seek the opinion of a qualified professional.

 

PLEASE DO NOT ASK ME TO GIVE ADVICE BY PM - IF YOU PROVIDE A LINK TO YOUR THREAD THEN I WILL BE HAPPY TO OFFER ADVICE THERE:D

Link to post
Share on other sites
  • Recently Browsing   0 Caggers

    No registered users viewing this page.


  • Have we helped you ...?


×
×
  • Create New...