At Last This Government Takes Action Against Payday Loans

[mikey4444]

http://www.bbc.co.uk/news/uk-politics-25083701

Better late than never I suppose.

[naomi24]

Yes, indeed. The last government didn't do it.

[RATTER15]

About time!!!

[mikey4444]

You are right naomi...Osborne was interviewed by Evan Davies this morning on the Today program, but couldn't really explain why his government has taken 3.5 years to finally take action. It wouldn't be anything to do with wanting to appear to be on the side of ordinary people would it ? With an election coming up soon perhaps ?

These payday loan companies are nothing better than shysters and loan sharks. In poorer areas, they infest our High Streets and are blighting them. They exploit vulnerable and poorly-educated people. If the Tories are finally getting around to dealing with them, well...all to the good, whatever their motive.

[ummmm]

You can't really call them loan sharks. They don't send the heavies round if you miss a payment.

[weecalf]

This mob will do nothing as they know they are the cause of peoples hardships with rising prices .They will be hoping the lenders take the pressure of them .What does davy and George know about living on the bread line ?

[naomi24]

//It wouldn't be anything to do with wanting to appear to be on the side of ordinary people would it ? With an election coming up soon perhaps ? //

Possibly. The very same reason Ed promised to do it if he is elected next time. Shame his predecessors didn't do it when they had many years of opportunity.

Of course there’s always the possibility that this government is taking steps to stop this because it’s the right thing to do.

[bazwillrun]

shame they dont do anything about the gambling programmes everywhere on TV and the shopping channels that lie non stop and use every physchological trick in the book to prey on people

these scum cause far more problems than Wonga and on a much larger scale

[mikey4444]

Naomi...there will come a time when this Government and its apologists will have to stop blaming the previous administration and defend its own actions.

But not yet it would seem !

[naomi24]

Mikey, hopefully, there will come a time when the apologists for the previous government acknowledge its failings – but not yet it would seem.

[LazyGun]

Blaming the last government for not taking action on Payday loan companies seems a little rich. The payday loan industry, typified by companies like Wonga, is a recent phenomenon. Wonga was not even started until around 2006.

And it takes time - several years, usually - for the effect of the practices to manifest, to collect and review the evidence,etc. I do not lay the blame for action on anyone, politically speaking - but some action to better regulate the industry is plainly required, especially the interest rates they can charge and the processes by which people can access loans from several different payday loan companies at the same time.

And the impetus for change has come from Labour. The Tories /this coalition have been resistant to taking action on the payday loan companies until very recently.

[mikey4444]

Lazy Gun...common sense at last !

[ToraToraTora]

Good idea in principle but will they effcively kill off this kind of lending? Alright by me but the people who use these do so because main stream credit is not available to them.

[bazwillrun]

@TTT

but how many of these people are needing to borrow because of a real very short term emergency need as opposed to those who are just living beyond their means

[ToraToraTora]

I'm making no judgement in that area baz but generally the sort of people that would even entertain these companies are generally those that cannot borrow any other way.

[hc4361]

The sad thing is that if you use a company like Wonga as it is meant to be used - very short term loan paid back on time - then it often works out cheaper than using an overdraft on your current account or going overdrawn and having direct debits unpaid.

People don't go to these companies if they have other options such as a credit card, free overdraft or bank loan.

To use APR on a short loan is not helpful.

[bazwillrun]

but is it not the case that most people who cant get credit the usual way cant because of a reason eg bad credit risk, previous bad credit history etc

[bazwillrun]

"To use APR on a short loan is not helpful."

I dont know what theyre ads says but if you borrow £100 and intend to pay back the sum one month later, then surely most people just want to know how much is being added on and the final total amount theyre paying back, i'm guessing APR means nothing to a lot of these people, they just want hard bottom line numbers

[bazwillrun]

@jordyboy

of course the loony spend it all labour party wouldnt dare to blame a previous administration for its own predictably caused problems ..would it, only the torys do that !

[mikey4444]

http://www.bbc.co.uk/news/uk-25098810

Rather worrying news about payday loans I would have thought.