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Wronga!

Payday Loans are now illegal in 16 states in America and the loan sharks are out in force to exploit the British population. The Tory government has welcomed them in and basically this is how this sick and callous business works. Banks yes you know them the places with lots of money get to borrow money extremely cheaply and have been bailed out to the tune of billions by taxpayers. Only now they've decide not to lend money to the taxpayer and so the working man has to borrow at grotesque levels of interest (as high as

4000% APR) while the banks are essentially given financial aid through your taxes. once reserved for the poorest countries it seems that the only way out of this mess is for churches, trade unions and co-operatives to provide a system of microfinance.

6/03/13

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Comment by john fairest on May 7, 2013 at 22:53: says it all

http://www.bbc.co.uk/news/business-22436306

Comment by john fairest on November 28, 2012 at 18:03: The Payday loans

he government is to change the law to allow a cap to be imposed on the interest rates charged for so-called "payday loans".

Ministers are to amend the Financial Services Bill to give the planned Financial Conduct Authority the power to limit charges.

The news follows concerns over annual interest rates of up to 4,000%.

The government faced a possible House of Lords defeat on an amendment put down by a Labour peer over the issue.

BBC political correspondent Norman Smith said it was being suggested that there should not be a blanket cap on interest rates but the Financial Conduct Authority (FCA) would be able to investigate different loan schemes and then set a limit on the amount of APR charged.

'Usury'

Labour peer Lord Mitchell put down the amendment to the bill, which was also signed by Lord Welby, the incoming Archbishop of Canterbury.

Lord Welby called the most costly loans "usury", saying that curbing them was a "moral" issue.

This followed concerns that loans intended to be short term have become prohibitively expensive and, in some cases, ruinous if not rapidly repaid.

The government has now agreed instead to introduce its own amendment to the bill next Wednesday.

Treasury minister Lord Sassoon told peers: "We need to ensure that the Financial Conduct Authority grasps the nettle when it comes to payday lending and has specific powers to impose a cap on the cost of credit and ensure that the loan cannot be rolled over indefinitely should it decide, having considered the evidence, that this is the right solution."

Sources insist it is not a U-turn and that the Financial Services Bill would already have given the FCA some powers to cap payday loans.

Peers have been told that some loans involve interest rates running into thousands of per cent.

Lord Mitchell told peers:" This is an industry run by cowboys on the fringes of legality." He has not withdrawn his own amendment but is expected to do so following the government's move.

Comment by john fairest on October 5, 2012 at 22:07: http://www.bbc.co.uk/i/b01n7m0q/

wronga special relatable

Comment by john fairest on June 9, 2012 at 22:51: The BBC featured an article on Peer to Peer landing today

Lending via three websites that link savers with borrowers - bypassing the
banking system - has topped £250m.

"The banking middle men may in time become the surplus links in the chain."

Much of the money has been moving across generations, from older people looking for a decent income to younger borrowers setting up in life and desperate to keep down the cost of taking a loan.

Comment by john fairest on April 10, 2012 at 13:51: payday gap-Representative APR 1737%
Example on a loan of £100 for 31 days: Amount payable £125, Interest £25, Interest rate 300% p.a.

Comment by john fairest on April 9, 2012 at 7:22: Is there a possibility that Credit Unions might be a better area to promote for all parties ukcu.co.uk/