Pay Day Loans Repayment Vs Rent | Discuss

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Pay Day Loans Repayment Vs Rent
16/12/2011
1:40 pm
Dean
Wales
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That this money has to repaid and some on top. But if someone takes out a pay day loan for £300 pound they end up paying back close to £400 pound in total. Now in a lot of cases this is as much as some ones rent per month or certainly a big chunk. The real problem now is that when it comes too it rather than paying these loans late and incurring a massive amount of interest on top they will pay them as promised and then still have rent to pay. But as you are more than aware it will in most cases be the landlord who will get knocked for their rent to make sure the pay day loan is paid not leaving anything left to make their rent.

They have reported on the news that more then 6 million people in Britain will have taken out a pay day loan to see themselves through Christmas and the new year. But the real problem is how many of these people are tenants who will not be able to afford their rent because of this situation and more importantly out of the 6 million which one is your tenant.

At Landlord Referencing we unfortunately believe that we are going to see a mass increase in tenants moving in the new year because the easiest way to get out of this debt is not, to not pay the payday loan company but in fact just pick up and leave the landlord with the debt behind them and of course with traditional referencing methods these debts will not be flagged up with a new landlord unless the tenant tells them "that is not going to happen" We encourage all landlords and letting agents to join the system so that they are not caught out in a migration of payday loan debtors jumping ship as our systems will not only tell you where the tenant comes from but  they can also tell you if the tenant is on the move on our back to back system.

16/12/2011
2:45 pm
Sal
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Hello,

 

I saw something about this on the news that said over Christmas 6 million people could apply for these loans.

What the King ell is wrong with the government in this country allowing this to go on, it is legalised loan sharking on a national level which will cripple people and as usual landlords will end up picking up the king bill.

What will it take for our Government to act to stop this madness,  the whole country crashing around our ears.  

One of these S##t B##gs  is charging 2768% per year and its legal Yell they destroy families.. Samii start up a protest and tell those To 55 pots in number 10 to stop this NOW!

16/12/2011
2:55 pm
Cedric
Golders Green
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2768 pc !!!

My grandfather owned a pawn shop in the 1930's and even he could not get away with that.

I am staggered sometimes how the world has moved on and allows this legal but blatant smash and grab culture.  The spirit of **** ******* **** **** ******** ******* ***** **** **** **** ***** ******* ********* ******** *** **** ****** ********** ************ **** *********** ************* Turpin lives on in this country.  Sammi you can add my name to this protest if you start it up !

 

Cedric

16/12/2011
7:53 pm
Vale-Estates
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In my opinion the worst of all these companies are Provident. They employ local agents to go around the neighbourhood selling the loans, and collecting the debt.

 

These people are in turn getting their friends and family to sign up, even if they hadn't thought of it before. Just talking about how tough things are over a cup of coffee, and BANG...they're signing up to a "provvy loan"... Ingenious business model from the owners, but terrible for the community. The loansharks sit back, and get the locals to do the job for them.

16/12/2011
10:03 pm
SamiiB
Somerset
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I will start a petition if we get a minimum of 100 expressions of interest posted in the comments section below.

(Simply by clicking http://www.freeimagehosting.net/newuploads/23458.pngImage Enlarger situated below this comment. Smile)

So please share it, retweet it and let anyone else who would be interested know about it!

http://i61.photobucket.com/albums/h72/luverboi9/Moving%20stuff/thclock.gifImage Enlarger

Mahatma Gandhi;"We must become the change we want to see."

…are Compulsary Lessons on Avoiding Debt the way forward or too little too late??

Social Media & Content Manager at TenantReferencingUK.com.

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17/12/2011
5:54 pm
Cedric
Golders Green
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I used to have a tenant who was hooked into those Provident loans and she was a target for that Company.  Can you believe that 2 weeks after she took out a loan they were offering her extra credit - some of these Companies are a bit scary and not too ethical.  I come from an age when we believed in saving our money and not getting into huge debit, although my family did make a living from the pawn business when it was unfashionable and not really spoken about.

20/12/2011
1:14 pm
Jayne.B
Inverness,Scotland.
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in full agreement with Sally & Cedric! count me in & I'll spread the word too!Laugh

21/12/2011
9:54 am
york
Birmingham.
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I completely agree with all of the thoughts on these pay day loans. In a nutshell it is daylight robbery and a very dangerous cycle to get into. If you think about it, if you where short one month then what about the next  month when you have to pay it back and this is the cycle I refer to because then you will have to take out another pay day loan to cover the previous. 

I can however understand how they can be helpful but at what stage once you have started will you eventually get out of the spiral of more and more debt. I would be interested on the thoughts of someone who has taken one of these loans out and the experience they had.

York 

21/12/2011
10:31 am
Paul Routledge
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Hi All,

We are getting a few concerned members who are worried about what happens with these loans in the new year and we are telling our Landlords and Agent to put out notices to their tenants about pay day loans and telling their tenants to pop in and see them if they run into trouble after Christmas if they have taken one.

This will give them both a chance to try and avert an inevitable problem in the New Year when it comes to paying the loan or the rent in full.

I think that to contact tenants who may be in trouble will result in a problem shared is a problem halved.

I myself have had 2 tenants come in and say they have both borrowed money over Christmas of which they will struggle to repay in the New Year so it looks like I will need to take less in rent and spread their debt out over the next 6 months and of course interest free.

The irony here is that they will be paying the payday loan company back with massive interest and I will have to support that loan without charging anything. So it seems that the landlord has to pick up the bill again.

Message to the Government “Sort it out and stop this legal loan shark-ing” 

 

Paul Routledge CEO
Tenant Referencing UK.Com
21/12/2011
2:42 pm
Cedric
Golders Green
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I agree that it is plainly unfair that the Landlord should have potential rent deficit problems in the New Year if their tenants have taken out these astronomical pay day loans from these companies that seem to be springing up everywhere.  I was staggered a few nights ago to find of them advertising on TV while I was flicking through the channels.  Why the Government seem to turn a blind eye to this legal loan sharks is totally and utterly beyond me.  Rant over.

 

Mr Routledge should be commended for his proposal to contact tenants and come up with a way to overcome these probable rent deficits occurring as it's not the best way to start the New Year for both tenant and landlord.

 

I am sure that no tenant wants to harm their Credit or ID report and although the moral of the story is don't go near these companies with a bargepole I imagine that they are very tempting at this time of Year.

29/12/2011
10:35 am
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i'll whole-heartedly support the cause if you receive enough support samii!

the fundamental problem with our country is the shameful way our society values greed over humanity.

we need a change ASAP, before it's too late!

29/12/2011
11:49 am
gpreston
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Too right Ray!

I've just read this Loan sites blamed for bankruptcy .

Here in Peterborough the number of people filing for bankruptcy has increased by 25 per cent this year already,
AND the number of people becoming bankrupt in the city is now 17% above the national average!!! Surprised

Repeating what you've highlighted Dean; the majority of this is resulting from people who have got into financial difficulty after borrowing money from websites such as http://www.wonga.com and then struggling to make the growing repayments.
But then these people SHOULD NOT BE ALLOWED to take out these extortionate "pay-day-loans" if they can't afford to in the first place!!!

I'll share this page with the landlords & agents I know around Peterborough, as I'm sure they'll be up for supporting this protest, as I am!!!

29/12/2011
3:02 pm
Stacie
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I think it's just another company cashing in on the recession.

Most people don't read the small print so I bet more than half of them don't even realise how high the interest rate actually is!

Think the petition is a great idea, I'd definitely sign it. Smile

03/01/2012
4:53 am
Mel
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Some of the payday loanEmbarassedEmbarassedEmbarassed company are not true.

03/01/2012
10:44 am
Dean
Wales
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Hi Mel

I was just a bit confused about your post with a link to Cash Genie. Do you think that these pay day loans are acceptable with their 2,339% APR is a fair way of borrowing money or saying that it should not be allowed.

Dean

04/01/2012
11:27 am
gpreston
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I don't know if you've noticed yet but from you comment on the Guardian article today they've replied to you on Twitter?
Just wanted to say how extremely pleasing it is to see the mainstream media taking an interest in the brilliant work you do for landlords & property owners across the UK.

Keep it up! Laugh

04/01/2012
11:29 am
Paul Routledge
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We are warning all our Landlords and Agent that this is going to be a real problem in the New Year and telling them to upload their tenants and get other landlords and Agents to join us.

Network lifestyle referencing with our 1 hour tenant alert means we can tell  all our members if a tenant has left his last landlord with massive debts within 1 hour of them leaving.

It stops tenants who think they can borrow money from pay day loan companys and then spend their rent to pay them rather than the rent in their tracks or when they try and just up and off to a new landlord.

You will not get this information on any other tenant reference site in the UK today.

It will be interesting to hear from the first landlord or Agent that takes a direct hit from a pay day loan payment.

Paul

 

Paul Routledge CEO
Tenant Referencing UK.Com
04/01/2012
12:07 pm
SamiiB
Somerset
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Nice to see Shelter carried out this survey after Dean blogged about this last month.

It gathers us together with a common denominator; where maybe they understand that not all landlords are bad and homelessness is largely going to be bought about by "tenants not cutting their cloth to suit their coin".

Read Shelters full article here.

Great to see another common denominator with Shelters latest petition against rogue landlords
( Which we are all in full support of, here at LandlordReferencing.co.uk )

Social Media & Content Manager at TenantReferencingUK.com.

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04/01/2012
12:54 pm
Paul Routledge
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It would be interesting to hear from shelter as to what makes a bad landlord in their eyes, unfortunately when a tenants back is against the wall for whatever reason (justified or unjustified) just the landlord trying to get the rent to pay his bills is seen in the tenants eyes as harrassment and therefore deemed as a bad landlord.

I wonder if they would be kind enough to comment on the boundaries as they see it. these boundaries can then be offered to define a bad or rogue landlord and we can then add these as a statement for landlords to agree to that they will work within those parameters before they join us.

So shelter here is a personal invitation to contact me on 01934 645237 and lets make a list together and use it as the set of protocols that both your tenants and our landlords that they should work within to not be tagged as BAD or ROGUE

 

I have also found another story today written by Sarah O'Grady @ express newspaper  and its nice to see that they are picking up on what will be a massive problem in a few months when the food runs out and the sharks start feeding.

Paul Routledge CEO
Tenant Referencing UK.Com
04/01/2012
1:21 pm
SamiiB
Somerset
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gpreston said:

I don't know if you've noticed yet but from you comment on the Guardian article today they've replied to you on Twitter?
Just wanted to say how extremely pleasing it is to see the mainstream media taking an interest in the brilliant work you do for landlords & property owners across the UK.

Keep it up! Laugh

 

Sorry for missing your post Gary, we're currently waiting for The Guardian to contact us.

I'm also awaiting a response from Sarah O'Grady (Social Affairs Correspondent for The Daily Express), regarding her latest article published today; Britons Pay Rent With 4,000% Loans.

I'll keep you all updated don't worry! Smile

Social Media & Content Manager at TenantReferencingUK.com.

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