BBC News – Payday loan rollover plan is challenged by lenders

[Legal Beagles]

Payday loan rollover plan is challenged by lenders Payday lenders are divided over a plan to limit the number of rollovers of short-term, high-interest loans, MPs have heard. The City watchdog, the Financial Conduct Authority (FCA), has proposed a limit of two extensions of payday loans if borrowers chose not to repay via BBC News […]

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[Amethyst]

Re: BBC News – Payday loan rollover plan is challenged by lenders

Peter Tutton, from the StepChange debt charity said that many borrowers were "in a hole and a payday loan helps them to dig the hole deeper".

Gillian Guy, of Citizens Advice, said that it was not appropriate for some people to be "force fed" a payday loan, rather than given debt advice.


oh and this is nice....

As a result,[of being investigated] 19 firms have exited the market. Three have had their credit licences revoked. There are more than 200 payday firms operating in the UK.

However, the Commons Public Accounts Committee has been scathing of the OFT's record in regulating the industry, accusing it of being "timid and ineffective" in a report published in May 2013.

[EXC]

Re: BBC News – Payday loan rollover plan is challenged by lenders

Martin Lewis was bang on with what he told the committee that if they think there's a problem now, due to the grooming of youngsters through TV advertising, in 10 years time payday loans are going to be a mainstream form of lending and that a survey has found that 14% of 10 year olds have suggested to their parents that they take out a payday loan when Mum & Dad refuse to by them a toy.

Fast forward the video to 1:56:30 http://www.parliamentlive.tv/main/Pl...eetingId=14115