Page 1 of From the `No **** Sherlock` files - Payday loans make personal debts worse

I`ve always hated these companies. While their rates are clearly displayed on screen, most of the people dim enough to take out these loans wouldn`t have a clue what they meant anyway. Also, the tone of the adverts always annoy me. I rememeber one that actually advertised it would loan you money to go out on the lash.

Firms such as these have less than 1% of their customers using their` service` wisely. Paying back the next day, or within the week. Sadly, there are thousands of people out there that won`t think things through properly, and end up even deeper in debt than they were before, and as they signed on the dotted line without reading the fine print, the loan company comes up smelling of roses.

http://www.bbc.co.uk/news/uk-15226454

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These businesses should be better regulated. I don`t believe they should be shut down, they do have their place, but I believe that interest rates should be capped (or even have a maximum repayment amount set), and also, at the very least, they should be banned from advertising.

All the adverts serve to do is sensationalise a very risky service to those most vulnerable - always in the ad breaks of Jeremy Kyle... (I know this cos I work shifts and the missus likes to watch a bit of Jezza in the mornings)

Trouble is there are plenty of companies that need more regulation in the UK, but you`ve got a load of right wingers running around saying how too much regulation is damaging the economy.


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If the high street banks offered short term, lost cost (interest) options like this, these loan companies would be able to trade.
The greed and inflexibility of high street banks is partly to blame in my view.

The irony is that that these companies are borrowing the money to lend out, FROM the high street banks!

Quote:
If the high street banks offered short term, lost cost (interest) options like this, these loan companies would be able to trade.Thats a fair point, I`ve had to use them once or twice before for car repairs etc, because without my car I couldn`t work.  We have no savings due to a long string of unfortunate circumstances and I have a poor credit history.

I tried my bank, I called and explained the situation, and got nowhere, they wouldn`t even offer a temporary overdraft to tide me through the 10 days til payday. 

I then paid it off, but at a fee of just over £75, meaning I was £75 down I what I was expecting in my wages after the cost of the repair.  Queue another payday loan (money was that tight that £75 down means no food etc for about two weeks), and so on, took me six months to get straight properly coz of the variance in fees etc.   A lower interest rate and an agreed overdraft would have solved my problem at less cost, and meant I was up straight quicker.

It also seems that different dates in the month mean a variance in fees and interest charged.  A difference of payment due date by a day can mean a higher charge of between 5 and 45 quid!