GLC Payday loan Survival Guide

[Guest]

http://govanlc.blogspot.co.uk/2013/0...-glcs-new.html

unday, 14 July 2013

How to tackle payday lenders: GLC's new payday loan Survival Guide


With 90% of the payday lending market failing to comply with consumer protection laws to the severe detriment of vulnerable consumers, Govan Law Centre (GLC) believes there is now an urgent need to help people in the UK to fight back against payday lenders.

The payday lending market was recently referred to the Competition Commission, and in 2011/12 there were 8.2m new payday loans made in the UK alone. There is every expectation that this number will continue to rise, and with it the financial exploitation of consumers across Great Britain and Northern Ireland.

GLC has therefore decided to publish a free 'Payday Loan Survival Guide' for consumers across the UK. Our new guide explains how consumers can take back control of their finances, challenge unfair interest and charges, stop payday lenders from emptiying their bank accounts, and pay back debts legally due on a reasonable and affordable basis. The guide has been written by GLC's Principal Solicitor, Mike Dailly.

Govan Law Centre's new Payday Loan Survival Guide is designed for all consumers across the UK in difficulty with payday loans, and can be downloaded here (as a PDF) for free.

Our guide is free. It has been produced without funding, and we will be posting a link where charitable donations to GLC can be made by those who would feel able to help our work in this field.http://govanlc.blogspot.co.uk/2013/0...-glcs-new.html

[charitynjw]

Re: GLC Payday loan Survival Guide

Hi andy58,

Brilliant!

Thank you.

[Guest]

Re: GLC Payday loan Survival Guide

From the podcast
http://www.bbc.co.uk/podcasts/series/moneybox

The Payday Lending part begins at 10.33 With Mike Dailly and Paul Lewis.

Great job being done by Govian as usual, this is the section mentioned in the podcast, the fatal aspectas far as most PDL companies are concerned is that it has also to be applied to an agreement which is modified under section 82 of the act(rollover).
If it was the presence of the earlier loan would have to be taken into account in assessing the affordability of the second loan, generally this would be prohibitive and theretofore makes the rollover none compliant.

They should as the pod cast says advise a debt repayment plan.

http://www.legislation.gov.uk/uksi/2...ulation/5/made

Assessment of creditworthiness
5. After section 55A (pre-contractual explanations etc) as inserted by regulation 3, insert—
“Assessment of creditworthiness

55B.—(1) Before making a regulated consumer credit agreement, other than an excluded agreement, the creditor must undertake an assessment of the creditworthiness of the debtor.
(2) Before significantly increasing—
(a)the amount of credit to be provided under a regulated consumer credit agreement, other than an excluded agreement, or.
(b)a credit limit for running-account credit under a regulated consumer credit agreement, other than an excluded agreement,.
the creditor must undertake an assessment of the debtor’s creditworthiness.
(3) A creditworthiness assessment must be based on sufficient information obtained from—
(a)the debtor, where appropriate, and.
(b)a credit reference agency, where necessary..
(4) For the purposes of this section an agreement is an excluded agreement if it is—
(a)an agreement secured on land, or.
(b)an agreement under which a person takes an article in pawn.