Payday loans for the self employed?

Phil V

Phil V

Suspended / Banned
Messages
26,303
Name
Phil
Edit My Images
No
Is this a new thing, I've never seen one before but today I got 2 emails one from Wonga and one from BCA (Business Cash Advance)

To be honest I never opened either so I have no more details, but :nono:
 
That company should be hung, drawn and quartered! It really surprises me how people still use them with all the bad press etc!
 
I've got to admit I don't understand the big fuss about Wonga and such like. I mean, it's not as if they try to keep the amount you have to repay a secret. You borrow £X, and if you want to pay it back on *this* date you'll have to pay £Y, and if you want to pay it back on *that* date it will cost you £Z. And you choose when you want to pay it back, and just make sure that you do pay it back when you said you would, because otherwise Bad Things will happen. How hard to understand is that?
 
StewartR said:
I've got to admit I don't understand the big fuss about Wonga and such like. I mean, it's not as if they try to keep the amount you have to repay a secret. You borrow £X, and if you want to pay it back on *this* date you'll have to pay £Y, and if you want to pay it back on *that* date it will cost you £Z. And you choose when you want to pay it back, and just make sure that you do pay it back when you said you would, because otherwise Bad Things will happen. How hard to understand is that?
Click to expand...

Look at who they're targeting. Anyone who needs a loan badly enough to pay those aprs needs protection from them.

There was a big feature on watchdog tonight. It seems their lending practices are fairly dubious
 
boyfalldown said:
Look at who they're targeting. Anyone who needs a loan badly enough to pay those aprs needs protection from them.
Click to expand...

Absolutely.

A few years ago, I received a cheque in the post. I think it was for £500. It was from a loan company and the (very) small print stated that all you had to do was pay it into your account and the following terms and conditions apply...

Obviously it was a ridiculously high interest rate and their timing was perfect as it was just after Christmas when most people's finances are a bit low.

I suspect many people who should have thrown it away (like I did) actually used it.

This is just preying on those who really should not be taking out any type of loan.


Steve.
 
StewartR said:
I've got to admit I don't understand the big fuss about Wonga and such like. I mean, it's not as if they try to keep the amount you have to repay a secret. You borrow £X, and if you want to pay it back on *this* date you'll have to pay £Y, and if you want to pay it back on *that* date it will cost you £Z. And you choose when you want to pay it back, and just make sure that you do pay it back when you said you would, because otherwise Bad Things will happen. How hard to understand is that?
Click to expand...

Agree... People need to be more responsible for their action and stop blaming others when they get caught out.
 
cambsno said:
Agree... People need to be more responsible for their action and stop blaming others when they get caught out.
Click to expand...

It would appear the oft disagree though, having slapped payday lenders pretty hard this summer
 
I worked for a large credit card company for a couple of years and you'd be amazed how poor some people are with there finances and often or not it's anyone but there fault as to why....it was once entirely my fault that some woman couldn't pay for her daughters 21st birthday party at some posh London restaurant...wasn't my fault she had spent 3k on her card that week....but to her it was and she spent 30 minutes screaming at me down the phone :shake:
 
You can't help liking Earl though!
 
Many years ago when I worked in financial services I was offered an agency with big loan firm, their big thing was that they would lend to people with CCJs when banks wouldn't, the thing that amazed me was this approach...

Ask client how much they need to borrow...

Ask client how much they can repay each month and over how many years...

Look it up in your payment & rates tables such that... if the amount they say they can repay for the amount they want to borrow is MORE than the best rate we can offer, increase the APR until its slightly MORE than they say they can afford to repay !!!

So if they need £3,000 over 3 years and say they can afford to repay £130 pcm, but the actual normal cost would be just £100 pcm then I was told to increase the APR until it was costing them £140 pcm - supposedly as everyone can stretch that bit further than they say

The point being that at XXX loan and payment I'd get say £500 commission, but if I simply charge them an extra £40 per month over 3 years by artificially upping the APR then HALF of the extra they didn't really need to pay was also mine as a commission

I found it so disgusting an idea I told them to shove it :shake:

Dave
 
StewartR said:
I've got to admit I don't understand the big fuss about Wonga and such like.
Click to expand...
+1. It's there in black and white. It's not meant to be a long term loan so the equivalent APR has to be high. For sake of argument and simplicity (it's too early for me to do calculations), let's say you took out a loan of £100 at 4% APR for 30 days. That works out to a repayment of £100.33. That's right - 33p! If you were going to give a loan out of a £100 to a stranger, how much would you want back as a reasonable fee?

Even something like £25 for the loan is 300% APR

cambsno said:
Agree... People need to be more responsible for their action and stop blaming others when they get caught out.
Click to expand...

+1. There's this huge thing now about how it's always someone else's fault. It was the council's fault for the pavement when someone tripped because they were too busy on their mobile whilst walking to notice the pavement. Or it's the supermarket's fault for the food because someone's getting fat.
 
These firms don't just target those who are crap with money, they target the terminally stupid.

The last thing anyone massively in debt needs is another chunk of expensive debt. The same can be said of Greece.
 
cambsno said:
Agree... People need to be more responsible for their action and stop blaming others when they get caught out.
Click to expand...

So why can't people be responsible for saving their carrier bags and using them again?
 
ooh cross thread consstency check :runaway:
 
norters said:
So why can't people be responsible for saving their carrier bags and using them again?
Click to expand...

My issue is with the tax on them. If they are that harmful then ban them outright. Are the ones from small shops (no tax) not as bad?
 
2blue4u said:
The last thing anyone massively in debt needs is another chunk of expensive debt.
Click to expand...

Agreed.

A good bit of advice I read once was don't take out a loan to pay off an overdraft as eventually, you will have a loan and an overdraft.

And why do loan companies use the word consolidation when they mean adding together?


Steve.
 
Steve Smith said:
Agreed.

A good bit of advice I read once was don't take out a loan to pay off an overdraft as eventually, you will have a loan and an overdraft.

And why do loan companies use the word consolidation when they mean adding together?


Steve.
Click to expand...

Yeah man, I agree! Unfortuneatly in real life things happen. And peeps struggle. And stuff catches up with you. It's not all as simple as we all like to think :help::help::help::help::help:
 
You must log in or register to reply here.
Back
Top