Payday loans

[GreersElbow]

Who ever developed this concept is a genius, but those who fall for it are idiots IMO.

1700%+ APR, it doesn't take a genius to figure they'll want how much you borrowed, back each month for x amount of months.

 

[Lord Bracknell]

An alternative ...

East Sussex Credit Union Limited

East Sussex Credit Union (ESCU) is a not for profit savings and loans co-operative, which has been trading since August 2001. Originally working in the East of Brighton, in August 2004 we were granted a ‘common bond' extension to enable our services to be accessed by anyone living in the Brighton or Hove parliamentary constituencies.

The Financial Services Authority has now extended our common bond to cover the whole of East Sussex.

And we are growing quickly! We have a current membership of over 3,000 people and they have increased their savings with us from over £500,000.

As a Friendly Society we take our social and charitable objectives very seriously. We therefore aim to provide a high quality, sustainable and easy to access savings and loans co-operative, which is responsive to the needs of the people of East Sussex and actively combats the detrimental effects of poverty and financial exclusion.

Work in partnership with local communities and other statutory and non-statutory organisations to provide joined up solutions which help to combat poverty and its detrimental effects upon health, educational attainment, employment and homelessness.

Contribute to economic regeneration by promoting savings and sensible borrowing amongst our membership, providing paid and volunteer work opportunities and offering loans facilities to entrepreneurs, and training and experience for members to improve labour market accessibility.

Offer cost effective and flexible loans that meet the needs of our members and which offer a viable alternative to predatory lending practices

Advance local wealth by redistributing our profits to our members in accordance with co-operative principles. In some cases we re-invest profits to develop the Union.

 

[pseudonym]

East Sussex Credit Union Limited

East Sussex Credit Union (ESCU) is a not for profit savings and loans co-operative, which has been trading since August 2001. Originally working in the East of Brighton, in August 2004 we were granted a ‘common bond' extension to enable our services to be accessed by anyone living in the Brighton or Hove parliamentary constituencies.

The Financial Services Authority has now extended our common bond to cover the whole of East Sussex.

And we are growing quickly! We have a current membership of over 3,000 people and they have increased their savings with us from over £500,000.

As a Friendly Society we take our social and charitable objectives very seriously. We therefore aim to provide a high quality, sustainable and easy to access savings and loans co-operative, which is responsive to the needs of the people of East Sussex and actively combats the detrimental effects of poverty and financial exclusion.

Work in partnership with local communities and other statutory and non-statutory organisations to provide joined up solutions which help to combat poverty and its detrimental effects upon health, educational attainment, employment and homelessness.

Contribute to economic regeneration by promoting savings and sensible borrowing amongst our membership, providing paid and volunteer work opportunities and offering loans facilities to entrepreneurs, and training and experience for members to improve labour market accessibility.

Offer cost effective and flexible loans that meet the needs of our members and which offer a viable alternative to predatory lending practices

Advance local wealth by redistributing our profits to our members in accordance with co-operative principles. In some cases we re-invest profits to develop the Union.

Unfortunately my lord most people that use payday lenders have no or poor credit history so they are unable to borrow from mainstream lenders, that includes credit unions.

 

[Super Steve Earle]

FFS has no-one on here ever heard of an overdraft from the bank? 3 or 4 days for just a few pence interest-yes, a few pence!

 

[The Rivet]

In my opinion the outlets that trade credit at 1700% apr are reprehensible! However, even more reprehensible are the people that use them just to get the 'latest TV, Refridgerator or Dyson' whilst still using mobiles and Sky TV whilst on Benefits! I see it all the time!

 

[Lord Bracknell]

Unfortunately my lord most people that use payday lenders have no or poor credit history so they are unable to borrow from mainstream lenders, that includes credit unions.

Not entirely so. A credit union can support people out of debt, and provide a structured way to break away from a chronic dependence on high interest short-term loans. It can be hard, but it's achievable.

 

[jevs]

All this talk about how bad payday loans are etc etc and not one mention that people should take responsibility for their actions. Everyone knows how much a payday loan will cost you and when you have to pay it back....they don't have a gun at your head.

 

[Badger]

In my opinion the outlets that trade credit at 1700% apr are reprehensible! However, even more reprehensible are the people that use them just to get the 'latest TV, Refridgerator or Dyson' whilst still using mobiles and Sky TV whilst on Benefits! I see it all the time!

It always amazes me that the poorest areas of town have the most satellite dishes, and you can bet they have the full HD sports package so it looks good on their 50" plasma. People seem to have no sense of prioritisation and working out what they can afford, these payday loans are just pandering to that.

 

[Simster]

All this talk about how bad payday loans are etc etc and not one mention that people should take responsibility for their actions. Everyone knows how much a payday loan will cost you and when you have to pay it back....they don't have a gun at your head.

I think that's a harsh assessment. Don't get me wrong, I have precisely those sentiments for those in work who rack up enormous credit card debts going on holidays they can't afford, or buying stuff they can do without.

But these payday loans prey on society's weak - people the credit card companies won't touch with a barge pole.

 

[Triggaaar]

The thing is, if used properly, they're fine.

You see, I don't think there's ever a case where they're fine. If you're going to be capable of paying the loan back, then you'll never be that desperate for £200. Delay paying your bills by another 4 days, hardly going to be a problem is it.

 

[Westdene Seagull]

If you're having problems paying back debts then go to one of the debt charities NOT Pay Day Loans. Personally I think the government should put into law a maximum interest rate - say 75% pa.

 

[Triggaaar]

Who ever developed this concept is a genius, but those who fall for it are idiots IMO.

Unfortunately (and I mean no offence) there are tons of people daft enough to use these scammers. People still ring 0900 numbers because a card in a magazine says they won something.

 

[Dominoid]

Per annum is nothing over a few days though, it wouldn't be worth their while then. Apr is a deceptive figure when the term is less than a year.

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[El Presidente]

If you need a loan go to the Bank...oh....they will not loan anything....go to a relative.....they have no money....go to payday loans...or don't take a loan!
If the goverment wants to put a stop to these types of loans, they must make borrowing available to everyone, at a bank loan rate. Don't hold your breath!

Could try a credit union.

 

[El Presidente]

Per annum is nothing over a few days though, it wouldn't be worth their while then. Apr is a deceptive figure when the term is less than a year.

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Over a few days perhaps, but these villians rely on you not being able to make the repayment on pay day, and that is when they cash in big style.

 

[BLOCK F]

Agree with Lord B. and El Pres.
Credit Unions can be a great help to many who are in financial difficulties.

 

[SK1NT]

FFS has no-one on here ever heard of an overdraft from the bank? 3 or 4 days for just a few pence interest-yes, a few pence!

Im sure that they have maxed their overdraft at this stage or cant even get one. This is likely to be a last gasp attempt at getting the cash... behind robbing a bank....

 

[pseudonym]

I agree credit unions can help educate because in order to borrow you have to save, but as i have said before they will not lend to anyone who has a poor or no credit history so that's where payday loans come into play and once in the trap you can not get out. As i mentioned before these company's need to be regulated because as i showed a £100 debt can turn into £500 in a space of a month with all the extortionate charges that get added on.

 

[Deleted member 18477]

some people are desperate for money. simple as that.

 

[Tricky Dicky]

All this talk about how bad payday loans are etc etc and not one mention that people should take responsibility for their actions. Everyone knows how much a payday loan will cost you and when you have to pay it back....they don't have a gun at your head.

I suspect a lot of people who have to take one out don't understand how it works and what it will cost them, I would think it's a case of getting some money when you need it and worry about the consequences later.