Hyndburn MP warns on payday loans

2:31pm Thursday 27th December 2012 in News

AN EAST Lancashire MP is warning constituents not to be entrapped by ‘legal loan sharks’ over the festive and new year period.

Hyndburn and Haslingden MP Graham Jones is urging residents to make use of credit unions and financial advice instead of high interest ‘payday loan’ firms.

He said: “A large number of people will be looking for credit over the festive period.

“However I want to offer a Christmas warning about using payday loan companies, or what are commonly referred to as legal loan sharks.

“Legal loan sharking risks putting people into a spiral of debt, with people having to take out other high-interest loans to pay off their existing ones. These companies prey on the poor and vulnerable.

“I am a member of Haslingden Credit Union, a much safer, fairer and more ethical means of lending money for a short term.”

Comments (3)

3:05pm Thu 27 Dec 12

2 for 5p says...

Quote:

Hyndburn and Haslingden MP Graham Jones is urging residents to make use of credit unions and financial advice instead of high interest ‘payday loan’ firms

Your forgetting Graham you've got to have a record of saving with these credit union places ,
The people who go to payday loans are people who have never saved a thing in there life. The payday loan company are taking quite a risk on these loans so are entitled to charge a large APR
Quote: Hyndburn and Haslingden MP Graham Jones is urging residents to make use of credit unions and financial advice instead of high interest ‘payday loan’ firms Your forgetting Graham you've got to have a record of saving with these credit union places , The people who go to payday loans are people who have never saved a thing in there life. The payday loan company are taking quite a risk on these loans so are entitled to charge a large APR 2 for 5p

1:38pm Fri 28 Dec 12

richy0 says...

At what point has anyone said payday loan customers were stupid? I certainly don't think they are, and a large portion of my working day is taken up speaking to payday loan customers - lots of them are desparate (and yes, vulnerable) and make some poor financial decisions. I think that's unfortunate, but I don't think for a second they're stupid.

A payday loan may be cheaper than an unauthorised overdraft - in an ideal world people should avoid both. But this misses the point - the problem with payday lenders is not the high APR. Everyone knows they're expensive. The problem is everything else they do, especially when people can't pay.
http://speedyloansea
rch.com/
At what point has anyone said payday loan customers were stupid? I certainly don't think they are, and a large portion of my working day is taken up speaking to payday loan customers - lots of them are desparate (and yes, vulnerable) and make some poor financial decisions. I think that's unfortunate, but I don't think for a second they're stupid. A payday loan may be cheaper than an unauthorised overdraft - in an ideal world people should avoid both. But this misses the point - the problem with payday lenders is not the high APR. Everyone knows they're expensive. The problem is everything else they do, especially when people can't pay. http://speedyloansea rch.com/ richy0

2:14pm Fri 28 Dec 12

2 for 5p says...

richy0 wrote:
At what point has anyone said payday loan customers were stupid? I certainly don't think they are, and a large portion of my working day is taken up speaking to payday loan customers - lots of them are desparate (and yes, vulnerable) and make some poor financial decisions. I think that's unfortunate, but I don't think for a second they're stupid.

A payday loan may be cheaper than an unauthorised overdraft - in an ideal world people should avoid both. But this misses the point - the problem with payday lenders is not the high APR. Everyone knows they're expensive. The problem is everything else they do, especially when people can't pay.
http://speedyloansea

rch.com/
a loan at 2700%apr
Yes I'd say they were stupid
[quote][p][bold]richy0[/bold] wrote: At what point has anyone said payday loan customers were stupid? I certainly don't think they are, and a large portion of my working day is taken up speaking to payday loan customers - lots of them are desparate (and yes, vulnerable) and make some poor financial decisions. I think that's unfortunate, but I don't think for a second they're stupid. A payday loan may be cheaper than an unauthorised overdraft - in an ideal world people should avoid both. But this misses the point - the problem with payday lenders is not the high APR. Everyone knows they're expensive. The problem is everything else they do, especially when people can't pay. http://speedyloansea rch.com/[/p][/quote]a loan at 2700%apr Yes I'd say they were stupid 2 for 5p

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