Mister M Posted October 17, 2013 Share Posted October 17, 2013 Ed has announced that Labour would impose a tax levy on pay day lenders. At first this sounded like a good plan until I asked myself a simple question. If the government took £1 billion from payday lenders where would that £1 billion come from. Ah yes. Those poor sods who need to borrow a tenner to make it through to the end of the week. Nice one Ed. Your concern for the poor is very touching. Link to comment Share on other sites More sharing options...
alchresearch Posted October 17, 2013 Share Posted October 17, 2013 If they can charge outrageous thousands of percent in interest - which they do -- then they should be paying similarly outrageous taxes on all of it. Ah, someone else who doesn't understand interest and how these lenders work. Are you sure you're not an existing customer? Link to comment Share on other sites More sharing options...
L00b Posted October 17, 2013 Share Posted October 17, 2013 APR should be statutorily capped (i.e. by the Gvt) at a usury rate, like it is in many European countries. Lend up to that, legal. Lend above that, illegal (annulment of the outstanding debt, criminal conviction for the lender). Simples. Been saying this for years. Link to comment Share on other sites More sharing options...
El Cid Posted October 17, 2013 Share Posted October 17, 2013 I blame peoples inability budget. No demand = no service. I wouldn't lend half of the people who use these services any money unless i had some major recompense for the risk. They only lend to these people because they will send the boys round if they dont pay; so they are illegal really. And they should made made 'fully' illegal above a certain percentage. It is their own fault, but they need help. Look what happened to the banks that charged too much when people went over-drawn, the people got their money back. Link to comment Share on other sites More sharing options...
Uptowngirl Posted October 17, 2013 Share Posted October 17, 2013 They only lend to these people because they will send the boys round if they dont pay; so they are illegal really. And they should made made 'fully' illegal above a certain percentage. It is their own fault, but they need help. Look what happened to the banks that charged too much when people went over-drawn, the people got their money back. That seems to fly in the face of the evidence. Wonga recently recorded its best yet Net Promoter Score (“NPS”) of 78% from customers, which ranks above other high-growth technology companies, such as Apple, and contrasts sharply with the UK banking industry average of 0%. NPS is a standard measure of customer satisfaction designed by a Harvard professor to predict strong growth in companies. The score determines how likely someone is to recommend a company. Apparently they also turn down more loan applications than they accept as the chances of ever getting their money back are so low. So you had best keep your evidence handy before their lawyers pay you a visit. Link to comment Share on other sites More sharing options...
alchresearch Posted October 17, 2013 Share Posted October 17, 2013 That seems to fly in the face of the evidence. Wonga recently recorded its best yet Net Promoter Score (“NPS”) of 78% from customers, which ranks above other high-growth technology companies, such as Apple, and contrasts sharply with the UK banking industry average of 0%. NPS is a standard measure of customer satisfaction designed by a Harvard professor to predict strong growth in companies. The score determines how likely someone is to recommend a company. Apparently they also turn down more loan applications than they accept as the chances of ever getting their money back are so low. So you had best keep your evidence handy before their lawyers pay you a visit. And the BBC said that 8/10 people used Wonga properly as a short term provider and had no problems. Why should action be taken because of a minority? Link to comment Share on other sites More sharing options...
Uptowngirl Posted October 17, 2013 Share Posted October 17, 2013 APR should be statutorily capped (i.e. by the Gvt) at a usury rate, like it is in many European countries. Lend up to that, legal. Lend above that, illegal (annulment of the outstanding debt, criminal conviction for the lender). Simples. Been saying this for years. That is all very well but Wonga for instance rates every loan application by risk assessment and turns down most. Yes it would be nice to cap the rate, but that would just tighten the criteria for making a loan and probably wouldn't affect the rate charged to the business that they accept. ---------- Post added 17-10-2013 at 11:59 ---------- And the BBC said that 8/10 people used Wonga properly as a short term provider and had no problems. Why should action be taken because of a minority? It takes 2 to tango. Anyone can set up lending money to these folk at 5% return if they want. But the return on a £50 loan for a week would be 5p. So you would only need 1 in 1000 such loans to default and you operate at a loss. Link to comment Share on other sites More sharing options...
willman Posted October 17, 2013 Share Posted October 17, 2013 They only lend to these people because they will send the boys round if they dont pay; so they are illegal really. And they should made made 'fully' illegal above a certain percentage. It is their own fault, but they need help. Look what happened to the banks that charged too much when people went over-drawn, the people got their money back. So will any money lender - eventually. The % charged is irrelevant. Link to comment Share on other sites More sharing options...
alchresearch Posted October 17, 2013 Share Posted October 17, 2013 If they can charge outrageous thousands of percent in interest - which they do -- then they should be paying similarly outrageous taxes on all of it. What would you call an acceptable rate of interest? And using that interest can you tell me how much I'd pay back if I borrowed £100 for three days? Would it be enough to cover the cost of the paperwork and money transfer? Its all very well slating them, but there's a reason they exist. Try going to your bank and asking for £50 for two days and see what they say. Link to comment Share on other sites More sharing options...
FACEBOOK Posted October 17, 2013 Share Posted October 17, 2013 Those pesky payday loan lenders, what are they like lending people money when they ask for it. It's disgraceful if you ask me. And the cheek of them expecting to be paid back! If only the yoof of today would spend a moment to listen to the very wise words of Britney Spears. Iain Duncan Smith asked her in desperation to write a new song to see if she could get the message across. It's very catchy. Lets hope the have everything now and pay for it never brigade can learn something at last. Well done Britney. Below are some of the lyrics which I'm sure you'll agree are right on point. You wanna hot body? You wanna Bugatti? You wanna Maseratti? You better work bitch You wanna Lamborghini? Sip martinis? Look hot in a bikini? You better work bitch? You wanna live fancy? Live in a big mansion? Party in France? You better work bitch You better work bitch You better work bitch Now get to work bitch! Link to comment Share on other sites More sharing options...
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