New caps on payday loans in force now

[SabreSheep]

http://www.bbc.co.uk/news/business-30641877

 

 

Does this have any impact on our members who are already struggling with payday loan sharks?

[fkofilee]

I would imagine it only applies to new loans going forward. Existing terms remain in force from previous loans... Unless Im missing something

[filrobbo]

Its about time they did the same with banks, the interest they charge daily for going over drawn on current accounts.

[renegadeimp]

Been tried with banks. The banks won a major court case a few years ago. As has always been. banks and the rich rule the country. Especially when they are passing around envelopes to policy makers and political parties.

[fletch70]

That is quite a serious allegation. I suspect the ruling you are talking about was the supreme court ruling on bank charges . Although the case was lost by the OFT they were told there was other legislation they could use however they failed to follow through with that for reasons best known to themselves http://news.bbc.co.uk/1/hi/business/8376906.stm

[citizenB]

http://www.bbc.co.uk/news/business-30641877

 

 

Does this have any impact on our members who are already struggling with payday loan sharks?

 

I think the FCA were looking into a lot more of the PDL industry after Wonga, SS - so I guess anything is possible. I wonder if it would be worth people taking a genuine look at their loans and if they were totally honest in the information they gave to the company, perhaps they could make a stab at irresponsible lending and try to get some forbearance.

[fletch70]

I know that with my minicredit loan I said I was in receipt of benefits which was 100% true. When I couldn't pay they accused me of all sorts because I hadn't said I was unemployed. Anyway I sent a huge letter and haven't heard a word since , it seems I haven't even been passed over to OPOS.

 

My fear is that many PDL's will go under and the books will be sold on to DCA's . People who have not heard for a while will suddenly be bombarded by contacts . I would imagine that debt purchasers pay very little for the older PDL's due to the very nature of the debt and will probably only need to recover a small percentage to be in profit , I think with toothfairy they paid 7.5% of the anticipated recoverable amount which in itself was only a fraction of the total book value