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Complete Ban On Legalized Loan Shark Payday Loan Adverts Watch

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    (Original post by Rinsed)
    A poor solution is better than no solution surely?

    And, to be honest, if they are simply used to tide someone over till payday, I don't think they're that bad an bad option at all.
    In the short term, yes, in the long term it depends if they can afford to pay them off. The issue with it tiding someone over to payday is that they get stuck with needing something to tide them over to payday; if they're at their limit anyway in terms of payment and then add in interest costs, it may well be that they have to take another loan to cover that, and so on.
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    (Original post by shadowdweller)
    In the short term, yes, in the long term it depends if they can afford to pay them off. The issue with it tiding someone over to payday is that they get stuck with needing something to tide them over to payday; if they're at their limit anyway in terms of payment and then add in interest costs, it may well be that they have to take another loan to cover that, and so on.
    You're pointing out problems but not proposing any solutions.

    We know people using payday loans are in a bad situation. We know many of them won't be able to repay. But it does not seem to me to follow that getting rid of them would benefit anyone.
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    (Original post by Rinsed)
    You're pointing out problems but not proposing any solutions.

    We know people using payday loans are in a bad situation. We know many of them won't be able to repay. But it does not seem to me to follow that getting rid of them would benefit anyone.
    Because the question isn't whether the payday loans should exist, but whether they should be advertised. Which I don't think they should, for the reasons I've outlined previously.

    In term of an actual solution, the concept of a payday loan wouldn't be inherently bad if it were to be done in a more sustainable way, aka having less ridiculous interest rates.
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    (Original post by shadowdweller)
    Because the question isn't whether the payday loans should exist, but whether they should be advertised. Which I don't think they should, for the reasons I've outlined previously.

    In term of an actual solution, the concept of a payday loan wouldn't be inherently bad if it were to be done in a more sustainable way, aka having less ridiculous interest rates.
    I suggest that the position that payday loans should be permitted to exist but not to advertise is incoherent. If this is your position it seems that you think that the relevant customers are sufficiently able to assess and manage their own financial affairs to be able to make properly the final decision to enter into the contract, but that they are nonetheless sufficiently incapable of assessing and managing their finances that they cannot be trusted at the prior and less significant stage of receiving information about the product.

    The interest rates are perfectly appropriate given the nature and intended term of the loan, as well as the very high credit risk taken by the lender. In any event, unless you would maintain that the poor people who typically consume these products are too stupid to be permitted to handle their own financial affairs, in which case I'd invite you to state that explicitly, the question of whether or not someone is getting a good deal is a matter for the individual entering into the deal, not for you.
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    (Original post by shadowdweller)
    Because the question isn't whether the payday loans should exist, but whether they should be advertised. Which I don't think they should, for the reasons I've outlined previously.

    In term of an actual solution, the concept of a payday loan wouldn't be inherently bad if it were to be done in a more sustainable way, aka having less ridiculous interest rates.
    They should exist, but the people who might need to use them shouldn't be told they exist?

    They should exist, but the companies who sell them shouldn't be allowed to charge enough to cover their losses?

    It sounds like you've really thought this through.

    The second point is basically another way of saying 'they shouldn't exist', by the way. These are high interest loans by definition, and the people who use them are necessarily the people who no one will sell loans to at a lower rate.
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    Pay day lenders should be banned or at the very least be tightly limited to the interest levels they can charge, in my view.

    Like vultures, they prey on those in desperate situations. It's a bit like going to a person who's starving and offering to buy him a meal on the condition that he must pay you back thousands, but he's so desperate that he accepts.

    Predatory capitalism at its worst.
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    (Original post by shadowdweller)
    Not at all - I don't think the existence of the companies is necessarily an inherently bad thing, just the way they advertise them. Yes, people are responsible for their actions, but the adverts specifically target people who are in a position where they don't have a huge number of alternate options, and they do so in a way that makes the loans look like a good thing, where in reality they rarely are.
    I 100% agree with you
 
 
 
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