Tuesday, Aug 24, 2010
A dangerous spiral?
Money Hospital: Payday loans: helpful tool, or hopeless financial trap?
According to research by Consumer Focus, the national consumer rights watchdog, there are now four times as many payday loans being taken out today than there were in 2006.
Posted by mr g @ 06:11 PM (1047 views) Add Comment
7 Comments
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1. Crunchy said...
"Keeping the anemic host alive."
Obamacare anyone?
2. braindeed said...
Money Hospital: Payday loans: helpful tool, or hopeless financial trap?
Joe Ratzinger: Mormon or reformed Hitler Youth Roman Pontiff?
3. uncle tom said...
I stick to my idea of a maximum interest rate.
Any credit, or quasi credit borne of short payment, should be subject to a maximum rate of interest - I would suggest base + 10% p.a.
Anyone caught trying to charge more should be required to forfeit to the borrower not only the gain, but the principal as well - no if's, no but's - a punitive response to those who might be tempted to exploit weakness.
Payday loans, and other immediate credit schemes; tempt the vulnerable to their own disadvantage.
- They should be totally illegal.
4. uncle tom said...
As a rider, I would suggest that employers, if requested, be required to provide employees either with cash payments, or a payment vehicle that can generate cash from a local ATM without delay or charge.
5. Roost said...
Interesting, Pay Day loans to middle class families were about the last nail in the coffin for House prices in the US... Always one step ahead?
6. general congreve said...
Great news. Full steam ahead.
7. Simon said...
Uncle Tom @3
Completely agree there needs to be some form of protection in terms of maximum interest rates .
Would also propose a register of people who it is illegal to lend money to .
Lending to such people would become a crime punishable along the same line as supplying any other form of drug .
People could either be "sectioned" onto it or voluntarily add their name on the proviso that it could only be removed several years later .
I have massive people who fall into debt due to little or no fault of their own .
However , how is it that the exam results get better every year yet between a third and a half of British Citizens are incapable of basic arithmetic or are otherwise completely incapable of managing their money ?