UK Payday loan scandal
Payday loan scandal UK
Back in 2007 a world recession hit started by the prime mortgage situation in the U.S. where they gave out secured loans on property all too easily. Now the Euro currency is in deep crisis because European governments have spent more than they took in in.
Shakespeare told us 400 odd years ago:
“Never a lender or a borrower be”
The UK seems to be awash with credit companies offering pay day loan companies offering credit far too easily.
We sent our Biz-find reporter on a mission to see how much debt we can muster in a few days.
There were far too many companies offering outrageous interest payments to people over the phone and online.
The average loan repayments were between 1700-2300% so if you borrowed £100 over 30 days the average payback was in 30 days was £170 and the average text loan was £300!
There was however an alarming number of calls and text messages that we received once we had applied for a couple of loans, from other companies.
We answered these calls, and we were met with an excited person on the other end who had great news for us, and that we had been offered more than we had asked for, they then took all our details, and then said that we had been accepted and all they need is the long number of our card. When we asked what this was for, it was for an admin fee for the broker of between £50-80 and the killer is:
You could still get refused by the creditor after paying the broker!
The UK seems to be the only country still allowing this kind of extortionate credit.
No sooner did these companies ring us then we had debt management companies ringing us, PPI companies, then companies offering to get you your credit report, many of these callers had Indian and Philippine accents and there was an awkward pause whilst the voice over internet protocol kicked in!
We managed to be offered over£ 25,000 in text loans and payday advances, seems all you need is a full time job, a current account and be on the electoral register to get any type of loan in the United Kingdom. If we accepted all these loans we would have been in debt to the tune of £33,000 all to be paid back next payday!
Is it any wonder the United Kingdom’s government owes so much money when its people are following suit and are too freely offered credit they can hardly afford.
Have you been tempted by the television adverts telling you how it takes 5 minutes to apply and the cash will be in your account today?