Does this country need to tackle the issue of predatory "Pay Day loans"?

D

dewdrop

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Why does it take months if not years for this country to highlight problems which have been given massive publicity in England already. I have in mind Pay Day Loans.
 
I have heard of these (gotten the spam emails) but are there any companies here in Ireland offering this product?
Surely they would have to be regulated by the central bank if they offer the product here and if that is the case then they are legal?

Not sure if there is a thread on them already on AAM?
 
I take it this is "Wonga" or the likes. I nearly fell off the chair when I saw some massive interest rate.

Surely a golden opportunity for credit unions - ok I know a lot of these loans are risky but the amounts are so small I think they credit unions could offer a more competitive rate (to put it mildly) and still cover themselves.

Does Wonga threaten to break your legs and take your telly too, or is avoiding that their USP??
 
Betsy Og said:
Surely a golden opportunity for credit unions -
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Mabs have highlighted the fact that credit unions have been so restricted on lending that people are turning to moneylenders.

Many times it's been highlighted on AAM that credit unions play a vital role for people that are unable to get loans from banks.
 
Payday Loans are just an on line version of version of the loansharks that call door to door..
Everything is moving to the internet now.
 
I know it's slightly off the main topic but I loved that news story a few months ago that showed that if you borrowed £100 at Wonga's APR (4,214%!!!), you would owe more than the US national debt after 7 years...

On £100 borrowed, you would owe £7.5M after 3 years, £13 billion after 5 years and £23.5 trillion after 7 years! [US national debt is c. £10 trillion]
 
orka said:
I know it's slightly off the main topic.
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I think your post is very much on topic! The Church of England recently divested themselves of their investment in Wonga because of an ethical concern about their activities including internet based pay day loans.

[broken link removed] October 7th, 2013 The Church of England, led by Archbishop Justin Welby, has become the latest organisation to speak out against payday lenders such as Wonga.com, a site condemned by many for the high rates of interest attached to their short-term loans that have been used by both consumers and small businesses alike.
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No, these loans should not be banned.

The interest rates should be legally limited to something like 1%-2% per month max.
 
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