Payday Loan Regulation!!!!

[fkofilee]

Guys!!! This is wonderful news and was reported by Martin Lewis from MSE

 

Also through Sky Below;

 

Tougher controls on payday lenders could see unlimited fines for companies which break the rules.

 

The Financial Conduct Authority (FCA), which will take over regulation of consumer credit from the Office of Fair Trading (OFT) in April 2014, said the sanctions were among a host of proposed new rules that would go out to consultation.

 

The organisation, which will cover tens of thousands of firms offering services such as overdrafts, credit cards and debt advice, was formed six months ago with the promise of strengthening protection for consumers.

 

Among its other recommendations: Limiting to two the number of times a payday loan can be rolled-over, banning misleading adverts and compulsory affordability checks for all loan applicants.

 

Payday loan firms have come under intense scrutiny in recent months after a damning report by the OFT found "deep-rooted" problems.

 

http://news.sky.com/story/1149590/payday-lenders-set-for-tougher-controls

[citizenB]

"Proposed new Rules"

 

"Sent out for Consultation"

 

No doubt by the time the FCA take over from the OFT in April 2014, there will be a lot of watering down.

 

What we really want to hear is that they are not "Guidelines" any more - which the Companies may or may not adhere to. But law which they MUST stick to.

 

I am impressed so far with the FCA, they do seem to be more user friendly.. but time will tell.

[silverfox1961]

I think everyone should be reading chapter 6 here:

 

http://www.fca.org.uk/static/documents/consultation-papers/cp13-10.pdf#page=54

 

and then take the time to respond to the consultation (as I am)

 

http://www.fca.org.uk/your-fca/documents/consultation-papers/cp13-10-response-form

[fkofilee]

I know they are proposed regulations, but i can really see this happening!!!

Im starting to think Stella Creasy's Campaign is paying off

[citizenB]

http://www.bbc.co.uk/news/business-24372134

[sillygirl1]

About time the OFT and whoever takes over sorts out this shoddy market.

 

Next time a certain company cold calls me again they will be reported to the CAB as they seem to be able to do a little bit more.

[Wintry]

Hi

 

The quote below from the Sky article had me at the edge of my seat... then I could not hold on any more and slid onto the floor...I am still there albeit with the keyboard in my hands, going to have to let go now though, need the hands to hold my sides and get back up somehow as the laughter is killing me:)

 

 

"The FCA's chief executive Martin Wheatley said: "Today I’m putting payday lenders on notice: tougher regulation is coming and I expect them all to make changes so that consumers get a fair outcome.

 

"The clock is ticking,” he added.

 

 

Just my views as always:)

[sillygirl1]

From the Daily Wail

 

http://www.dailymail.co.uk/news/article-2442299/Crackdown-payday-lenders-regulator-set-ban-firms-exploiting-customers-repay-debts.html

[Wintry]

Hi

 

I just about got up, then read the bit where it says "the clock is ticking" again, I am in a mess with laughter, pleeeze, no more:)

[Wintry]

About time the OFT and whoever takes over sorts out this shoddy market.

 

Next time a certain company cold calls me again they will be reported to the CAB as they seem to be able to do a little bit more.

 

Hi silly girl

 

Don't hold your breath with this, they all pxxx in the same pot it could be argued..maybe..perhaps:) and have had plenty of time already

 

The CAB are having a real go as they do, like they do, is it making any real difference? mmm the jury is out, but the fight must go on, never give in or all will be lost and there will just be the self interest profit making companies and other so called independent impartial advice agencies left.

 

It is face to face agencies and support groups like the CAB who are really coming under the cosh everyday with this and combined with the welfare reform etc. It is worth remembering that they are only human like everyone else and are not just in it to make a profit and the like.

 

The future does not bode well for many and real hardship is ahead for people, families and communities

 

I have been in this game for over 15 years and a similar field for years before that and thought I had seen everything, not so and I should know better, it is set to get worse, they care only about profit and not the misery that it can leave in its wake. The real world of people and struggling families is alien to some of them.

 

Support your local CABs, other agencies, support groups and those wonderful people who give their time free to help others (this includes the forums) they are doing their best.

 

My opinions or should that be take:)

Edited October 3, 2013 by Wintry

[liamp]

The FCA proposals don't go far enough. If you're interested in this issue, you could support the Charter to Stop the Payday Loan Rip-off, which has been created by a cross-party group of MPs and numerous anti-poverty and debt charities. Take a look at the 'Drowning in Debt' pages on Church Action on Poverty's website if you want to know more.

[Howie666]

I'm sorry to say this but these new 'regulations' seem like nothing more to me than deckchairs on the Titanic. There are way too many of these legal loan sharks around charging interest rates that make a Provident loan look cheap by comparison.

All this looks like is a limp attempt to ask them to 'play nice' with their victims (sorry customers).

Nothing in this appears to address the obscene interest rates, the use of bailiffs to terrorise people who can't pay, essentially the profiteering on other people's misery and desperation.

Not forgetting the chief slug of Wonga is 'nudging' government policy! I firmly believe these opportunists are part of the problem, not the solution.

[liamp]

The only way we're going to address all of those problems is by offering a real, affordable alternative - which is why the Charter also mentions proper investment in credit unions. In the meantime, no one is about to ban these loan sharks altogether - but we do have an opportunity to get some genuine regulation in place which will prevent the worst excesses.

[citizenB]

If these companies are forced by regulation to do proper affordability checks - are not allowed to let loans roll over - check that borrower does not already have another PDL on the go. I think that will be a start.

 

Then if borrowers wake up to the fact that these products are NOT the answer to their immediate problems and seek debt advice immediately they are beginning to lean towards taking out a PDL we might actually see the demand for these lessen.

[sillygirl1]

They also need to ensure these companies follow the OFT Guidelines in Debt Collecting and the Statute of Limitations rules.

 

I had a call from Payday UK yesterday, I didn't pass security as they didn't have my current address - as I've now been here over 4 years that is a good clue as to the age of this alleged debt - as far as I have checked they were repaid - so why the debt collecting call? I asked for an email copy of their complaints procedure and none was provided - and the guy said he would pass it to their fraud department - must be quite a busy department!

 

They also need to stop the 'You visited our website but didn't take a loan - if you want one now just log on and you can have one' type calls - 24/7 Moneybox are one of the companies using this tactic - and I've NEVER had a loan from them, just visited their site to check T&Cs for another Cagger over 5 years ago!

 

It is over 6 years since I last had a payday loan so the alleged debt is probably near statute barred anyway (I've noticed you get a flurry of calls/emails as a debt nears that time).

 

There is another company called Cash Kitty who has come to my attention - APR is 2670% (which kind of puts Wonga into perspective).

 

Rant over for today.

Edited October 31, 2013 by sillygirl1

[sillygirl1]

They also need to stop ALL tv advertising for payday loans and Cash Converter/Moneyshop type companies. It would then be a step in the right direction to stop targetting vulnerable people - especially as Xmas is now approaching.