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Pay Day Advnace Loan Companies...

Leeds Spur said:
Mate - they default rate is LESS than 10%!!

So the vast majority of people pay the money back!

I see no issue with the service, you are paying a premium for being a subprime loanee and for the fact you get the money instantaineously.

If you wanna by smack or heroin fine, i'd rather them do this than mug someone! And if they default they can't loan again...simples.
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i know re; the default
and i agree that it is a useful service to have, i just disagree with the targetting

interesting you make the point re; people borrowing to fuel an addiction or suchlike that would lead to violent crime if payday lending wasnt about.

i dont really think we should be encouraging subprime lending - that played too big of a part in the financial crash to be something we should aspire to as a society

i also think we need to look at the social element - we are very quick to help people with smocking, drug and drinking problems - but what about those with borrowing problems? we just sell more to them.

i wonder if we can find a breakdown of the demographic that tkae out these loans - i would hazard a guess (based purely on the ppl i know that have borrowed) that it isnt those kind of people, its people trying to make ends meet, including many well paid, stable middle classes whose problem is poor money management
 
Target the 'I need this for an emergency and know that I can pay it back' types rather than the 'I could really do with some extra cash as I'm broke' types, and have credit policies that ensure that you are lending to the right people. I know from my time working at a credit card company that the lending criteria used by these types of organisations are far looser than those used by other lenders.

Admittedly, things might have changed since then - Wonga et al. may well be doing things in the right way now. But it is right to be cautious about this type of lending.
 
Personal responsibility.

This to me is just more people crying about their lack of judgement and personal responsibility.

These aint loan sharks who'll come and kneecap you.

Are the jewelers cashing in on the price of gold exploiting people?

Comparing sumprime mortgages in the US to this doesn't doesn't wash.

Those loans were never going to be repaid and they had teaser rates that reverted to massively higher rates after 6 months....they were always going to fail. Here the cost of teh loan is 100% upfront and clear.......people are overwhelmingly paying the money back, what's the problem?

My mum who has been on welfare for 30 years was given a credit card by Natwest with a ?ú3k credit limit, 2 months ago!!!! What the fudge is that all about?

She spent ?ú600 on it at chrostmas and when I found out I cut the thing up, paid off the balance and she will pay me back interest free.....the APR was 30%.
 
Leeds Spur said:
IFA's are all very heavily regulated, especially after the endowment mis-selling scandal.

My brother has had to a brick load of new exams in order to still be able to give advice. Pensions are one of the most heavily regulated areas of finance.
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What you're talking about is the Retail Distribution Review, the crux of it is getting IFA's up to a higher qualification standard and removing commission based remuneration. Its what I do for a living and I was just curious to see the perception others have of goings on, from my perspective I can't see how legally it will limit people selling ISA's and Pensions and why it would dissuade companies from advertising them.

It genuinely concerns me the amount of pessimism there is surrounding pensions in general, alot of it due to past errors and media scaremongering. The fact is a majority of us on here are likely to receive no state pension and final salary schemes are dead for all but a few public sector workers. I can understand why the government has gone ahead with NEST as people just aren't saving for their retirements and the system will not be able to cope when the next few generations retire.
 
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I agree....ticking time bomb....millions will be in abject poverty.

The point is, the NI contributions don't fund your pension, it's just another form of general taxation.

The UK is quite good compared to Germany and Italy where they have an aging population and low birth rate.....they will be well and truly fudged soon.

I'm the only person I know with a private pension, ?ú400 a month with Royal London and ?ú300 a month into my work scheme, the company put in 5% as well.

My total projected fund value is something like ?ú400k and that's not going to be anywhere near enough. But I've at least made a start.
 
Have you passed all of the exams?

My father in law owns a financial services business but can't give advice anymore as he's 63 and can't be arsed with studying again!

He just does lunch these days!
 
Leeds Spur said:
Have you passed all of the exams?

My father in law owns a financial services business but can't give advice anymore as he's 63 and can't be arsed with studying again!

He just does lunch these days!
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I've got another two to get to Diploma status which is the new standard for advising, you can go all the way up to chartered though.

Alot of the older guys are pulling out the industry and attempting to sell their client boxes. Some older IFA's live off of the ongoing commission they receive as result of all their historic business and RDR will eventually take steps to remove that so could jeopardise alot of livelihoods
 
A couple of years back I took a payday loan, that turned into two, then three then before you knew it I had 5ks worth of payday debt.

The problem is you take ?ú500 payday loan and you pay it back the following month plus ?ú150 interest so ?ú650 in total. That particular month you will be ?ú650 short so you take ?ú650 loan to cover the shortfall. The following month you pay back ?ú650 plus ?ú200 interest loan. That particular month you are ?ú850 short.

You get the jist. Its a slippery slope. I had doorstep collectors come and threaten my parents (illegal by the way) I had calls to work (not allowed) I had more than three calls a day (not allowed) basically they're ****s and prowl on people who do not have sufficient funds. These companies know full well what they are doing.


Its horrible and never again. You need money? Ask a mate, ask parents etc hell even beg or busk but Do NOT take a payday loan.

Anyways I'm loaded now.
 
Steed Train said:
I've got another two to get to Diploma status which is the new standard for advising, you can go all the way up to chartered though.

Alot of the older guys are pulling out the industry and attempting to sell their client boxes. Some older IFA's live off of the ongoing commission they receive as result of all their historic business and RDR will eventually take steps to remove that so could jeopardise alot of livelihoods
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Is it called 'Grandfathering'? They've mentioned that will stop.

Their business turns over around ?ú1 million a year in fees......my father in law just takes his cut from the overall business, there is an insurance brokerage side as well.

My brother in law has got the diploma, he's going for full chartered status.....he was G60/G20 before.
 
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