Go Back   English Forum Switzerland > Off-Topic > Off-Topic > International affairs/politics  
Reply
 
Thread Tools Display Modes
  #1  
Old 28.05.2014, 19:32
Sbrinz's Avatar
RIP
 
Join Date: Oct 2011
Location: Murten - Morat
Posts: 11,866
Groaned at 563 Times in 354 Posts
Thanked 11,548 Times in 5,941 Posts
Sbrinz has a reputation beyond reputeSbrinz has a reputation beyond reputeSbrinz has a reputation beyond reputeSbrinz has a reputation beyond reputeSbrinz has a reputation beyond reputeSbrinz has a reputation beyond repute
Church working against Pay-Day Loan lenders

These are "popular" in the UK. Typically the loan is less than 10'000 and for less than a month.
However they are unsecured and not regulated, and interest rates can be VERY high. http://www.bbc.com/news/uk-25085299

Many poorer, unfortunate people, find they are paying 700 interest on a 1200 loan !!

Now there might be some unusual competition, good advice from the Church of England !
The church hopes to be able to steer people to credit institutes which are more honorable. http://www.bbc.com/news/business-27589517
Reply With Quote
This user would like to thank Sbrinz for this useful post:
  #2  
Old 28.05.2014, 19:56
Tasebo's Avatar
Forum Veteran
 
Join Date: Feb 2012
Location: Wald, Zurich/Stockholm
Posts: 1,339
Groaned at 7 Times in 5 Posts
Thanked 1,457 Times in 726 Posts
Tasebo has a reputation beyond reputeTasebo has a reputation beyond reputeTasebo has a reputation beyond reputeTasebo has a reputation beyond reputeTasebo has a reputation beyond repute
Re: Church working against Pay-Day Loan lenders

Maybe Justin could invite Mike Gove over for lunch and a chat on how to benefit people instead of further demoralise them
Reply With Quote
  #3  
Old 28.05.2014, 20:50
Senior Member
 
Join Date: May 2012
Location: zugish
Posts: 288
Groaned at 18 Times in 11 Posts
Thanked 268 Times in 138 Posts
mossie has an excellent reputationmossie has an excellent reputationmossie has an excellent reputationmossie has an excellent reputation
Re: Church working against Pay-Day Loan lenders

When you see the interest rates on those ITV ads, its criminal as you see who they are directed at.
Reply With Quote
The following 2 users would like to thank mossie for this useful post:
  #4  
Old 28.05.2014, 20:54
Pancakes's Avatar
Forum Legend
 
Join Date: Nov 2009
Location: Zurich-ish
Posts: 4,896
Groaned at 275 Times in 195 Posts
Thanked 10,048 Times in 3,794 Posts
Pancakes has a reputation beyond reputePancakes has a reputation beyond reputePancakes has a reputation beyond reputePancakes has a reputation beyond reputePancakes has a reputation beyond reputePancakes has a reputation beyond repute
Re: Church working against Pay-Day Loan lenders

Every time I go back to the US to visit now, I am astounded by the number of these "walk-in loan shops" there are.

It makes me sick -- the thought of anyone capitalizing on the poverty of someone else.* These things really need to be regulated.

* I feel that the lottery does that, too.
Reply With Quote
The following 3 users would like to thank Pancakes for this useful post:
  #5  
Old 28.05.2014, 21:55
Junior Member
 
Join Date: Jun 2013
Location: Zurich
Posts: 93
Groaned at 7 Times in 4 Posts
Thanked 137 Times in 51 Posts
threaded is considered knowledgeablethreaded is considered knowledgeablethreaded is considered knowledgeable
Re: Church working against Pay-Day Loan lenders

"Pay-day Loans" are a very interesting subject. For starters there is a 'need' e.g. someone with no spare cash has to pay a sudden bill: where does the money come from? i.e how do the poor achieve liquidity?

These loan companies have no competition apart from each other so they can pretty much charge what they want and generally are only limited by local laws. Why is it that huge high-street banks are so inefficient they cannot compete with these, often, one-man band loan sharks? Where has the efficiency of scale disappeared?

It is not uncommon to find unlicensed lenders actually offer much better deals than the licensed ones (a search through the law reports will show as much). So people complaining about pay-day lenders have actually caused the cost to the borrower to increase. i.e. if that god-botherer really wanted to help he should shut up and give charity to the needy.

Another factoid: most loan-sharks are women. Is there not something about the male dominance in society, especially finance, at work here...

Obviously people have a knee jerk about usury but the fact is that when there have been natural disasters it has been found that communities recover quicker the higher the legal limit to the interest rate/charges.

Contrary to another poster's comment in the UK there is regulation and the Financial Conduct Authority (FCA) is constantly tweaking things. IIRC even the Advertising Standards got in on the act once. However the FCA are stuck between a rock and a hard place. If they regulate too heavily the loan companies shut down and the poor are denied liquidity which leads to an 'increase in crime'. (The reason for the quote marks: did you know many incarcerated women's first brush with jail the spiral starts with not being able to pay the TV license? By extension if they got rid of the TV license for 25-44 y.o. women then the female prison population would start to fall). Conversely if the FCA regulate too lightly the pay-day loan companies pull all sorts of tricks to increase their profits.
Reply With Quote
Reply

Tags
uk loans




Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Pay first and pick up the other day in IKEA? nunuCH Housing in general 2 18.06.2012 19:59
Pay Day/Emergency Loans LeTeaBoy Finance/banking/taxation 23 02.10.2010 08:00
I would pay anything for love, but I won't pay that... Upthehatters2008 Food and drink 17 26.09.2010 22:08


All times are GMT +2. The time now is 07:03.


Powered by vBulletin® Version 3.8.4
Copyright ©2000 - 2021, Jelsoft Enterprises Ltd.
LinkBacks Enabled by vBSEO 3.1.0