Why has it taken so long for action to be taken against these 'Pay day loan' companies?

Question

I heard the idea came from the USA (home of the fast rail mortgage). Why does a UK government accept everything which comes this way? I have no idea how well it is working in the US but when I first saw it on TV (and I was surprised ALL stations did not refuse promoting these companies) I knew they would cause problems. In this instance I hold the government responsible closely followed by every company which helped these despicable companies advertise!
I would like to think the courts will lean to the borrower when these cases come before them. The country does NOT need these Shylock lenders and expect better from their government regardless of the party in office!

Answer 1

One of them had the brass neck to open on my High street. They even used a repugnant colour in their shop frontage (bear with me).



I was ever so glad that they only lasted a few months. I did wonder how they got away with using garish colours for their shop, when other small local businesses have been taken to task by the council, for using strong colour in theirs' (but we have an iffy Tory-***-Liberal council). *ffs it's come, like in "Prestwich-c*m-Oldham". it means "with".



Pay day advance companies are almost as low as they get. Legalised loan sharks. They're below dodgy pawn brokers and drug dealers.



The answer is that they represent capitalist ideology at it's 'finest'.

Answer 2

I dont think they are really intended to be long term lenders--hence the "pay day" tag. The idea is if you are a bit short half way through the week they lend you enough to tide you over till next pay day.The interest rates are utterly massive but are only usually for a few days.

Apart from Wonga and the nationally known ones there are some set up in Scunthorpe High st,where I live.They are a modern spin on the old "money lender"

I cant see whats wrong so long as they make their interest rates clear,which they do. They serve a need. I know in the 60s I was always hard up!

Answer 3

In the USA if a payday loan place follows the rules, regulations, and laws [ clearly post interest rates, fees, terms, etc ] and are honest in what they say and do, they are a legitimate business that people can patronize, or not, at their discretion. ... and obviously some people use their services.



The real question is, why are there so many financially illiterate and unskilled* people in our countries? * I was shocked when I read how many people DO NOT have a checking account. Getting and using one could save some people hundreds per year. Many people also do not know how to use a credit card wisely and to maximum advantage.



In defense of a PDL company, they have to charge high fees and rates because they are in a high risk business, and unlike banks, do not have millions of dollars / pounds working (being lent out) to cover expenses and provide a profit.

Answer 4

They are no different from the High Street banks who are charging extortionate rates to borrowers at a time when the base rate is at a record low!



The only reason the Government would act against the pay day loan firms it to drive the business into the hands of their pals in the High Street, if they actually cared about "loan sharks" they would have acted against the sharks in suits in the Banks and credit card companies.



The pay day loan firms saw a gap in the market and filled it, the Banks don't like it and have told the Government to get them the business.



There is NO difference between these crooks in pay day loans and the crooks in the Banks other than the latter are aided and abetted by our Government.

Answer 5

Why should any action be taken?



I don't like these companies any more than you do but they are legal and serve a need for fast money. The individual taking out the loan should take the responsibility of their action.

Answer 6

Does NOBODY take responsibility for their own actions in this country?



The companies are there - people go to them to borrow money



its got f//k all to do with the government if they are too stupid to grasp what its going to cost them



The ONLY thing the government has to do is make sure they fulfill what they advertise. If the "buyers" dont grasp the consequences then thats too bad.



It AINT the governments job to protect them - they are grown up - they take responsibility for themselves



The ONLY thing a court should ask is -

Was the borrower made aware of the cost of the borrowing in terms an average person could understand?

It AINT the courts job to decide if that particular person understood what they were told.



And I disagree that the country does not need them

People need access to short term loans. Without this FACT the companies would be out of business

At THIS moment they cant get them EXCEPT from these companies.

THEY are not the problem.

Its the need for people to borrow money, and the lack of access to loans thats the problem

Stopping (or restricting) the companies operating will do f///k all good.

The people will still need the loans but NOW there will be nowhere to get them



Government SHOULD be ensuring people can get access to short term small loans at normal costs.

Do THIS and the payday loan companies would just fade away



Its exactly the same with small businesses going bankrupt cos they cant get short term loans



The government being their normal "thick as 2 short planks" is attempting to cure the symptoms not the cause



ALL that will happen is that you will see an increase in personal bankrupcy, and an increase in reposessions,

(MAYBE thats actually what they want?)

Answer 7

Does no-one dare grasp the nettle and state that it is the fault of the people taking out the loans to start with? Lets not forget the easiest way to avoid being in their clutches is not to go to them in the first place.

I know it's a radical idea but how about buying things only when you have the cash yourself?

Answer 8

Unfortunately it's legitimate.





You and i might find it abhorrent but others make a living from it.





THERE ARE people who will go out of their way to AVOID TELLING the truth about their previous credit ratings and THEY'RE GENERALLY THE VICTIMS OF LOAN SHARKS.



The City of York Council has recently 'LOST' £100,000.00 and North Yorkshire County Council an additional £200,000.00 in loans to a CREDIT UNION.



Read this and weep - weep for the taxpayers who end up paying yet again for those who do not pay for their own lifestyle!



WHY DOES ANY ORGANISATION LET THEM HAVE ANY CASH?



http://www.guardian.co.uk/money/2012/nov/02/north-yorkshire-credit-union-collapse

Answer 9

Spud Murphy gives better rates