Affordable loans plan is unveiled

[Amethyst]

Re: Affordable loans plan is unveiled

didn't know they had plans (well any more than waffle) you got a link to the story pompey?
(or they on about the financial services bill thing pre election?)

[pompeyfaith]

Re: Affordable loans plan is unveiled

its on page 6 of the daily mirror im on my phone so cant get the link at the moment tited THROWN TO THE SHARKS

[Amethyst]

Re: Affordable loans plan is unveiled

Poor hit as Government refuse to clamp down on loan sharks - mirror.co.uk

Poor hit as Government refuse to clamp down on loan sharks

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24/09/2010

Legal loan sharks can carry on taking money from cash-strapped Brits - after plans for an interest rate cap were ditched by the Government.
Doorstep lenders who prey on an estimated 3 million people were facing a cap on the extortionate rates they charge - but now the coalition has backed down.
A senior minister told the Mirror firms can carry on with pay-day loans and charging a fortune for small sums.
He said: "We are not in the business of regulating credit.
There is a difference between the people with baseball bats who break the law to get their money and doorstep lenders offering people £50 to get them through to pay day."
More and more people have been turning to loan shops and doorstep lenders who offer quick, no-questions cash.
But with "collection charges" and sky-high short-term interest rates some borrowers end up repaying £183 on £100 loans, and annual interest rates of up to 2,500% have been reported.

More than 100 MPs of all parties and the Compass think tank had backed a rates cap.
They include Wigan MP Lisa Nandy, who attacked the Tory move, saying: "It goes to show that they are not serious about protecting the vulnerable."
Yesterday Work and Pensions Iain Duncan Smith launched a scheme offering a "fair-priced alternative" to loan sharks.
My Home Finance will lend small sums for household items such as school uniforms, fridges or furniture.
And Mr Duncan Smith said he wanted individuals to find the cheapest loans rather than rely on a ban on loan sharks. He added: "As a Government, we are fully committed to helping people make responsible choices for themselves and their families. That includes making the right choices when it comes to personal finance."
The Mirror has previously revealed that a firm linked to reclaiming debt from hard-up borrowers made contributions to the Tories' general election campaign.



Read more: http://www.mirror.co.uk/news/top-sto...#ixzz10Qwyd5Au

[Amethyst]

Re: Affordable loans plan is unveiled

20th Sept ....... The 'End Legal Loan Sharking' campaign has received the backing of over 100 MPs ahead of a meeting with Number 10 next week. EDM 660,a parliamentary motion calling for a cap on the cost of credit has now been signed by 107 MPs. MPs from the Conservative Party, Labour Party, Liberal Democrat Party, Democratic Unionist Party, Plaid Cymru, Scottish National Party and Social Democratic and Labour Party are all supporting the EDM.


24th Sept - plans for an interest rate cap were ditched by the Government.

[pompeyfaith]

Re: Affordable loans plan is unveiled

say a lot really as to which side this government is on same old conservatives but with the liberals who have gone against there manifesto gravetimes ahead for mr and mrs average ahead

[WendyB]

Re: Affordable loans plan is unveiled

I attempted to post twice last night but my laptop froze me out and now i can't remember what i was going to post.

However, it was something along the lines of 50% is better than the milion % from doorstep lenders. The problem is, that a lot of the people wanting these type of loans would be into the sub-prime market, so to speak, and in that respect the interest rates aren't as bad as some, I suppose. Just look at Vanquis pre-approved credit card with a whopping 48.9% ( I had one turn up the other day, I binned it). Nature of the beast is that people are always going to want to borrow money. Of course the banks will be in it to make a profit, but that's the way of the world isn't it. And it wouldn't be fair to offer the "loans" at a nil interest rate.

The problem is distinguishing between those who are actually in need because their standard of living is low and they can't afford the basics, and those who just take whatever they can get and don't bother to pay it back, then get a rubbish credit history, thus hiking them into the "sub-prime" situation.

And before anyone starts having a go, I AM NOT getting at anyone, or painting everyone on low incomes or poor people with the same brush. I just don't think a one size fits all approach to those on low incomes will work. As Nattie said earlier, initiatives would be better if they went down the financial advice/managing money better road.