East Lancashire MEP: Think again about payday loans

10:30am Thursday 24th January 2013 in News

EAST Lancashire Euro-MP Paul Nuttall has warned the desperately cash-strapped to be think twice before taking out a pay day loan.

A report by insolvency trade body R3 has just revealed that potentially five million British adults will be tempted to take out a short-term loan over the next six months.

UK Independence Party MEP for the North-West Mr Nuttall said: “They may be short-term but they are high cost and can result in alarming interest rates of more than 1,500 per cent.

“If people are considering taking such a loan I earnestly urge them to read the small print very carefully first and not make a hasty decision.

“These loans snare people into cycles of debt and however desperate they are now, their situation will only worsen with more debts they cannot pay.

“If you can’t pay back the loan on the due date the lender may then ‘roll over’ the loan for another month and you’ll have to pay another 30 days’ interest on the loan, plus the interest that’s already built up on it.

“It may be legal, but is morally corrupt and just legal loan sharking.”

Comments (4)

12:09pm Thu 24 Jan 13

2 for 5p says...

It is a perfectly legal business the MEP should be supporting legal business not dogging it down.
It is a perfectly legal business the MEP should be supporting legal business not dogging it down. 2 for 5p

9:23pm Thu 24 Jan 13

Excluded again says...

Go down to your local Credit Union instead. Maximum interest rate by law of 12.68%.

And Credit Unions are owned by their savers and borrowers, so a share of the profits goes to them, not to some fat cats in the City of London.

Of course, if you want to make donations from your hard earned money to the fat cats in the City of London, use pay day lenders. Maybe you feel that they need the money more than you do.
Go down to your local Credit Union instead. Maximum interest rate by law of 12.68%. And Credit Unions are owned by their savers and borrowers, so a share of the profits goes to them, not to some fat cats in the City of London. Of course, if you want to make donations from your hard earned money to the fat cats in the City of London, use pay day lenders. Maybe you feel that they need the money more than you do. Excluded again

10:28pm Thu 24 Jan 13

2 for 5p says...

Excluded again wrote:
Go down to your local Credit Union instead. Maximum interest rate by law of 12.68%.

And Credit Unions are owned by their savers and borrowers, so a share of the profits goes to them, not to some fat cats in the City of London.

Of course, if you want to make donations from your hard earned money to the fat cats in the City of London, use pay day lenders. Maybe you feel that they need the money more than you do.
problem is the credit unions require you to save with them for a whilst before they lend they are there for your sensible people.
Payday loans are there for your common household and garden scum bag who has never saved a penny in is life, come to think of it probobly never worked a day either.
Payday loan company are right to charge big interests after all its unsecured and there's quite a bit of risk.
[quote][p][bold]Excluded again[/bold] wrote: Go down to your local Credit Union instead. Maximum interest rate by law of 12.68%. And Credit Unions are owned by their savers and borrowers, so a share of the profits goes to them, not to some fat cats in the City of London. Of course, if you want to make donations from your hard earned money to the fat cats in the City of London, use pay day lenders. Maybe you feel that they need the money more than you do.[/p][/quote]problem is the credit unions require you to save with them for a whilst before they lend they are there for your sensible people. Payday loans are there for your common household and garden scum bag who has never saved a penny in is life, come to think of it probobly never worked a day either. Payday loan company are right to charge big interests after all its unsecured and there's quite a bit of risk. 2 for 5p

8:25am Fri 25 Jan 13

Kevin, Colne says...

Excluded again wrote:
Go down to your local Credit Union instead. Maximum interest rate by law of 12.68%.

And Credit Unions are owned by their savers and borrowers, so a share of the profits goes to them, not to some fat cats in the City of London.

Of course, if you want to make donations from your hard earned money to the fat cats in the City of London, use pay day lenders. Maybe you feel that they need the money more than you do.
Well said.

A credit union is a savings and loans club. It's about local people coming together and helping each other.

It's a bit like a bank but without any of the deceit and corruption of a mainstream financial services provider.

The Board of Directors has members drawn from the common membership. They don't get paid and there's no fancy incentive schemes, although some may receive an honararium for giving so freely of their time and skills.

The staff have no sales or loan targets. In addition to the full-time employees a credit union will have a band of volunteers who give of their time to staff the counters etc. etc. Very often the person that you see will not be receiving a wage for their time and nor would they want one.

When you walk through the door of a mainstream bank they see you as prey - someone to exploit - a sheep to be shorn. When you walk into a credit union the relationship is vastly different.

A credit union has two features that banks long ago thought didn't matter - those two things are sincerity and meaning.

And it makes a world of difference.
[quote][p][bold]Excluded again[/bold] wrote: Go down to your local Credit Union instead. Maximum interest rate by law of 12.68%. And Credit Unions are owned by their savers and borrowers, so a share of the profits goes to them, not to some fat cats in the City of London. Of course, if you want to make donations from your hard earned money to the fat cats in the City of London, use pay day lenders. Maybe you feel that they need the money more than you do.[/p][/quote]Well said. A credit union is a savings and loans club. It's about local people coming together and helping each other. It's a bit like a bank but without any of the deceit and corruption of a mainstream financial services provider. The Board of Directors has members drawn from the common membership. They don't get paid and there's no fancy incentive schemes, although some may receive an honararium for giving so freely of their time and skills. The staff have no sales or loan targets. In addition to the full-time employees a credit union will have a band of volunteers who give of their time to staff the counters etc. etc. Very often the person that you see will not be receiving a wage for their time and nor would they want one. When you walk through the door of a mainstream bank they see you as prey - someone to exploit - a sheep to be shorn. When you walk into a credit union the relationship is vastly different. A credit union has two features that banks long ago thought didn't matter - those two things are sincerity and meaning. And it makes a world of difference. Kevin, Colne

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