Payday lenders

  1. Payday loans 'no answer to rising debt'

    People in Cumbria who are struggling to pay their bills are being warned not to resort to payday loans, with very high interest rates.

    The county's trading standards advisers say leaflets offering loans are being distributed in Cumbria, but the interest rates are so high they would make a bad situation even worse.

    Money
    Quote Message: We always advise people to steer clear of them, they're meant to be for a short term loan but they can take you into a spiral of debt that is difficult to get out of." from Will Hayhurst regulation and compliance officer
    Will Hayhurstregulation and compliance officer
  2. Amigo loses almost a third of its value

    Money lender

    Shares in controversial lender Amigo have crashed almost a third today after it put itself up for sale.

    They're down 30.59% after losing 20.80p to fall to 46.92p.

    As recently as June 2019 the shares stood at 276p, but slumped last summer after the firm revealed "operational challenges" collecting on some loans.

    It lends money to people with a poor credit rating, but who can offer family and friends as a back-up to guarantee any missed repayments.

    The company controls at least 80% of the UK market but has faced scrutiny from regulators.

    Numerous complaints have also been submitted by people who feel they should never have been given a loan.

  3. Dodgy doorstep lender faces 11 extra years inside

    Jail

    An crooked doorstep lender who targeted vulnerable victims must pay a confiscation order totalling more than £5m, or face an additional 11 years in prison.

    In February 2018 Dharam Prakash Gopee was found guilty of acting as an illegal money lender and slapped with a three and a half year prison sentence in a case brought by the Financial Conduct Authority.

    in a confiscation order made at Southwark Crown Court last week, Gopee was ordered to pay £5,118,018.72 as well as paying almost £230,000 in compensation to his victims.

    Mark Steward, executive director of enforcement and market oversight at the FCA, said: "Mr Gopee’s offending has caused substantial harm to vulnerable consumers.

    "He has defied court orders in continuing to offend in one of the worst cases of contempt of court seen by the FCA.

    "Together with his jailing, this order seeks to deprive him of all his ill-gotten gains and to compensate victims. He runs the risk of a very significant additional jail term if he fails to comply with these orders."

  4. Regulator should 'examine affordability rules'

    Gillian Guy, chief executive of Citizens Advice, said the collapse of QuickQuid "is a reminder of how critical it is that all lenders carry out proper affordability checks."

    “Customers must be able to pay back a loan without falling further into debt and shouldn’t be left having to make compensation claims down the line as a result of irresponsible lending," she said.

    She called on the financial regulator to look again at whether high-cost lenders need clearer affordability rules.

  5. Tell us about your debt experiences

    The Demos report (see previous posts) has identified 29 local authority areas of the UK which it identifies as "credit deserts".

    They are Torfaen, Lincoln, Barnsley, Dundee City, Rochdale, Swansea, Blackburn with Darwen, Nottingham, Hyndburn, South Tyneside, Burnley, Corby, Doncaster, Sandwell, Stoke-on-Trent, Halton, Sunderland, Caerphilly, Liverpool, Wolverhampton, Hartlepool, Neath Port Talbot, Rhondda Cynon Taf, North East Lincolnshire, Knowsley, Blackpool, Merthyr Tydfil, Blaenau Gwent, and Kingston upon Hull.

    We would like to hear your experiences of debt and finding affordable loans, particularly in these areas.

    Get in touch at bizlivepage@bbc.co.uk

  6. 'There were no alternatives' says payday borrower

    Kevin Peachey

    Personal finance reporter

    Blackburn

    More on the Demos report about "credit deserts" - one of which is Blackburn, Lancashire.

    One 40-year-old from the town told BBC News how he built up debt of £4,000 on payday loans, and struggled to pay it back.

    Missing some mortgage payments also caused difficulty as it affected his credit score.

    "There were no alternatives around [other than payday loans] as we had a poor credit record. It was too easy to get these loans, with no checks," he said.

    He said he and his wife were caught up in these short-term loans and became reliant on them, then had to borrow from family and friends when they got into financial trouble.

    They only escaped the debt spiral after seeking help from charity Christians Against Poverty, which helped them set up a repayment plan.

  7. Call for action on tackling 'credit deserts'

    Kevin Peachey

    Personal finance reporter

    Payday loan sign

    A new report says that 29 areas of the UK are "credit deserts".

    That may suggest neighbourhoods where it is impossible to borrow money - but, actually, the report says they are areas where the only option for many people are high-cost, short-term loans.

    Cross-party think-tank Demos says the is high demand for affordable credit in these areas, but little opportunity to get it.

    People often struggle as they may have low incomes, or thin or poor credit scores, among other factors. So, the rely on payday loans and pawn shops.

    The report says there is no one-size-fits-all solution, but that local authorities and businesses need to be aware and step in to improve the situation.

  8. Deadline looming for payday loan compensation applicants

    Kevin Peachey

    Personal finance reporter

    Cash

    Borrowers who believe they were mis-sold payday loans have been alerted to looming deadlines for any compensation claims.

    Administrators KPMG are dealing with cases of former customers of SRC Transatlantic Limited, which operated until 2017 as SpeedyCash and had outlets in various UK towns.

    Anyone who believes they have a claim must submit it to KPMG by 31 July but, owing to the collapse of the company, they may only receive a fraction of any successful claim, according to the administrators.

    "We expect customers with a valid claim to get a low pence in the pound portion of the money they are owed by 30 April, 2020. It is important to note that claims made after 31 July, 2019, are very unlikely to be considered," a spokesman said.

    Customers of WageDayAdvance and Juo Loans, who might also be making claims to the same administrator after its collapse, have a later deadline of 31 August.