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ITN news and payday loans
Jon Ison - 20/11/12 at 07:18 PM

ITN news this evening..............

"when we return from this short break a special investigation into payday loans"

1st advert, payday uk, last advert before news comes back on, carloan securing loans on your car !

How ironic and hypocritical is that ?

woodster - 20/11/12 at 07:45 PM

I think the government are missing the point if they made sure that banks would lend money like they should do people wouldn't go to these scum robbing bastards, don't get me wrong I'm not a big fan of today's banking system but occasionally people and businesses need to borrow money and should be able to do so without being robbed ... Sadly it's the more vulnerable in society that get desperate and have to pay massive interest to borrow a few quid , maybe a cap on what interest can be legally charged is the way to go

Hellfire - 20/11/12 at 09:00 PM

2090% APR..........

From the BBC website: "A spokesman said the main reason for people complaining was that the loan had been unaffordable and should never have been granted in the first place."

I can't help thinking that some people just don't care how much it costs to repay the loan, until it actually comes to paying it back.....

Phil

macc man - 20/11/12 at 09:14 PM

Not so long ago lenders such as this were called 'Loan sharks'. How have they become legitimate?
Its up to goverment to regulate these crooks so the cannot fleece the vunerable in our society.
As said, the banks should be using the bail out money to loan to customers not hoard it away to pay for
more fat bonus payouts.

ian locostzx9rc2 - 20/11/12 at 09:40 PM

It amazes me that not only is it ok legally to charge the rates they do ,worst still there on tv all the time.
As said in earlier post in years gone bye they would of been classed as loan sharks people musted be very desperate too use these companies.It is quite shocking that it is Legal....

JoelP - 20/11/12 at 10:06 PM

Its a free market. Personally i'll take the free market with its faults rather than have excess regulation and intervention. If you dont want to pay 2000% apr, either live within your means or borrow from a cheaper lender. If the banks dont want to lend to you at 6%, its probably because you arent credit worthy. Remember, the financial crisis was caused by lending too much to so many muppets who couldnt afford what they had borrowed.

woodster - 20/11/12 at 10:44 PM

quote:
Originally posted by JoelP
Its a free market. Personally i'll take the free market with its faults rather than have excess regulation and intervention. If you dont want to pay 2000% apr, either live within your means or borrow from a cheaper lender. If the banks dont want to lend to you at 6%, its probably because you arent credit worthy. Remember, the financial crisis was caused by lending too much to so many muppets who couldnt afford what they had borrowed.


There's the problem !!! charging 6% the cheeky gits for a loan , they give you 1% in interest when you put money in , if you're lucky ..... As said above where's the government and a bit of regulation ??

Ninehigh - 20/11/12 at 10:59 PM

To be fair though it's an artificially high rate, since it's over a short term.

Actual example from wonga.com as of now:

Borrow £50 for 7 days, pay back £59.33

Sounds reasonable to me, considering any bank would probably laugh at that amount (meaning taking out a bigger loan over a longer time and paying back more in all for money you didn't need)

Borrow £50 for 48 days and it goes up to £81.78 and that's when it can start spiralling

MRLuke - 20/11/12 at 11:32 PM

quote:
Originally posted by woodster
quote:
Originally posted by JoelP
Its a free market. Personally i'll take the free market with its faults rather than have excess regulation and intervention. If you dont want to pay 2000% apr, either live within your means or borrow from a cheaper lender. If the banks dont want to lend to you at 6%, its probably because you arent credit worthy. Remember, the financial crisis was caused by lending too much to so many muppets who couldnt afford what they had borrowed.


There's the problem !!! charging 6% the cheeky gits for a loan , they give you 1% in interest when you put money in , if you're lucky ..... As said above where's the government and a bit of regulation ??


This is because of regulation. The government have said that the banks need to have a bigger balance sheet so that when poo hits the fan they dont go bust. Therefore they need to make loads of money now to comply with the new regulations.

As banks can no longer afford to lend but stupid people still want money we now have payday loans.

Its simple supply and demand, if you ban them then something else will come out that achieves the same thing.

JoelP - 21/11/12 at 07:46 AM

If banks have such an easy ride, then you are welcome to set one up! The difference between the interest rates they pay or charge is one aspect of their profit. To play devils advocate, if our society didnt have credit facilities then our economy would be worthless.

jeffw - 21/11/12 at 09:00 AM

quote:
Originally posted by JoelP
Its a free market. Personally i'll take the free market with its faults rather than have excess regulation and intervention. If you dont want to pay 2000% apr, either live within your means or borrow from a cheaper lender. If the banks dont want to lend to you at 6%, its probably because you arent credit worthy. Remember, the financial crisis was caused by lending too much to so many muppets who couldnt afford what they had borrowed.




This....

stevegough - 21/11/12 at 09:17 AM

quote:
Originally posted by Jon Ison
ITN news this evening..............

"when we return from this short break a special investigation into payday loans"

1st advert, payday uk, last advert before news comes back on, carloan securing loans on your car !

How ironic and hypocritical is that ?



Yeah, I saw the advert "logbook loans". Stupid, stupid ideas aimed at the desperate.
The wife and I are at the moment trying to pull one of our three sons out of the mire caused partly by the give away loan era.
This sort of irresponsible money sharking needs goverment intervention.

vanepico - 21/11/12 at 10:19 AM

I don't see what is wrong with getting a small overdraft? No interest on mine unless you've had the money for more than a month, used it till pay day and i'm sorted.

mcerd1 - 21/11/12 at 10:35 AM

quote:
Originally posted by vanepico
I don't see what is wrong with getting a small overdraft?

some people can't get one


I know a guy that couldn't get a proper debit card for nearly 10 years
(he was a total idiot with money, ended up paying more than £1100 for a £300 purchase through late payments and so on...)

vanepico - 21/11/12 at 10:56 AM

we all know atleast one completely clueless person in the world!

mcerd1 - 21/11/12 at 12:21 PM

quote:
Originally posted by vanepico
we all know atleast one completely clueless person in the world!

enough of them around to keep these kind of lenders in business



I've got a couple of mates that are only slightly better (at least they havn't used these types of lenders yet...)

one was hardly paying any more than the min of the couple of £k on credit cards (~16% APR)
and only paying the minimum into his ~6% morgage
but was busy saving £100 a month into a work scheme (out of is wages before he gets it) that pays a not to shaby 3%+ interest (higher than my morgage rate at least) - so he thinks he was doing well with the money and couldn't understand wy he was always skint

if it were me (and I think most other people with a brain would be the same) I'd payoff the credit cards in full asap, then save a little for some rainy day/holiday cash, but also overpay the mogage a little when I could
(its not like this guy is on a bad wage either :mad


and another mate is stuck in an endless loop of credit card ballance transfers, if he ever gets it wrong he could lose thousands

[Edited on 21/11/2012 by mcerd1]

Jon Ison - 21/11/12 at 12:22 PM

My point was not so much the integrity of the company's it was more aimed at ITN, they went to a break saying when we come back we have a report on these people ans how bad they are, then low and behold the 1st add was for one of those companies there reporting bad practices on ?

There are happy to take there advertising money!

vanepico - 21/11/12 at 01:16 PM

not surprised, they must be skint, trying to get any advertising they can get!

mcerd1 - 21/11/12 at 01:33 PM

as far as I know ITN don't do deal with the adverts, thats ITV (who own a chunk of ITN admitidly)
I beleve ITN do the ITV, C4 and C5 news and sell the programs to the channels (tell me if thats worng)
and its up to the channel to decide which adds they run


from my own viewing I'd say ITV will put any old add on as long as it pays....

[Edited on 21/11/2012 by mcerd1]

JoelP - 21/11/12 at 10:04 PM

quote:
Originally posted by vanepico
we all know atleast one completely clueless person in the world!


Indeed, sadly i lent the f***er 4 grand to pay a tax bill Still havent seen a penny 5 years later.

Maybe that makes me clueless!

Peteff - 21/11/12 at 11:25 PM

A friend of mine is like this. He took out a credit card and because the limit was say £4000 he thinks he has £4000 to spend and eventually ends up owing about £17000. Then he is offered redundancy and sees it as a way to pay his debts off so now he is broke and jobless. People are not victims they bring these things on themselves and because someone is willing to lend you money doesn't mean you are obliged to take and spend it but once you have it is all to easy to blame the card company or whoever for your plight.

David Jenkins - 22/11/12 at 11:05 AM

My daughter was hopeless with money, and ran up some significant credit card debts - but fortunately she was smart enough to work it out. She gave the cards to me to lock away, paid off the debt, and eventually told me to cut up the cards. That was about 5 years ago - she still knows that she would over-spend on a card, so has never applied for another one since.

Mr Whippy - 22/11/12 at 12:18 PM

Unfortunately schools felt teaching kids pointless maths like calculus more important than basic money management, but if they ever need to calculate a planets orbit