Pay Day Loans Repayment Vs Rent | Page 5 | Discuss

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Pay Day Loans Repayment Vs Rent
23/04/2012
4:26 pm
What ?
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I should change my name to Victor Meldrew.  On my e mail account I have received an e mail offering me a loan of up to £50,000 until my next payday.  They say it will be in my account within 15 minutes of my application.  Should I take them up on their offer and put the log on a red hot favourite at Kempton Park?

26/04/2012
2:46 pm
Tenant Referencing
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01/05/2012
11:04 am
Cedric
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I am not the worlds biggest Eastenders Fan (far too depressing for me), but I did view last Friday's episode and Bianca's very bad day.  Did anyone see at the start of the programme the "advert" for Pay Day Loans ?

This just summed up part of this problem that these television commercials are infiltrating the homes of the vunerable and appear very glossy to encourage you into their world.  It is my belief that once you are ensnared in this dangerous area your life will become very miserable and far from assisting people as the commercials seem to imply,  they are only around to ensure they make astronomical amounts of money from their customers.

It can not be correct that two of the Growth areas in Finance these days are Payday Loan Companies and Pawn Shops ?

As a Long standing Landlord it does concern me that some of my tenants may be dragged into this disturbing scenario with the result that any of my Tenants may not afford to pay their monthly rent.

Thank Heavens that this site has brought this subject to the forefront and have exposed this potential problem for all of the many Landlords in Britain.  I also must say that the scriptwriters of this show should be commended for bringing this subject into the living rooms of mainstream TV Viewers.

Cedric,

Cool

01/05/2012
6:53 pm
JaneHowden
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Arrggghhhh - I am now bombarded by Googlemail ads offering quick-loans, no credit check loans and the like - (I hate Google with a vengeance yet I am unable to change this at the moment) I am only interested in the payday loans scenario from a landlord point of view and I have no intention of following up these ridiculous offers - but the ordinary vulnerable person could be bombarded by these ads and fall in hook line and sinker - as soon as I can ditch googlemail I will - roll on the day!!

17/05/2012
10:09 am
Cedric
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My worst fears have happened.  One of my tenants contacted me yesterday to say they have taken out Payday Loans and cannot pay their rent which is due on 21st of this month.  They have managed to rack up quite a bit of interest which they are now under extreme pressure for and it looks like I will be the loser in all of this.  Thank you Mr. Payday Loan Company - it looks like you will get your pound of flesh and my rent is screwed for at least the next month and maybe more.

17/05/2012
10:23 am
Sharon Carmichael
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That is money lenders for you "my dear".  Shylock got the pound of flesh - the money lender got the pound or more plus interest!!!

Pay day loans should have never been allowed to spring up out of this recession.  It is natural that when people perceive themselves to be desperate will turn to such loan sharks who will be able to charge anything they like and once it has been done, then they will find no way back and will have to continue each time to pay back so much more than was borrowed in the first place.

Bad luck Cedric - guess you wont be taking out a pay day loan to cover your shortfall!!!  Confused

17/05/2012
9:33 pm
PaulBarrett
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cedric said
My worst fears have happened.  One of my tenants contacted me yesterday to say they have taken out Payday Loans and cannot pay their rent which is due on 21st of this month.  They have managed to rack up quite a bit of interest which they are now under extreme pressure for and it looks like I will be the loser in all of this.  Thank you Mr. Payday Loan Company - it looks like you will get your pound of flesh and my rent is screwed for at least the next month and maybe more.

 

I think you need to advise the tenant that his first priority is to pay the rent otherwise you will claim via MCOL and he will have a CCJ for non-payment of rent, thart will cause him problems on this site and on credit checks.

Most LL would not be concerned about pay-day loan company CCJ's but they would with rent arrears.

The tenant MUST understand that rent comes before everything else.

Just like mortgage payments.

Tell the tenant just to ignore the loan company, they go away eventually.

Yes he may end up with a CCJ but he will end up with one from you anyway.

I owe hundreds of thousands and only have 4 more years to go before the debts are statute barred.

As a tenant he is a fantastic position.

Just get the tenant to advise the company to shove where the sun don't shine and then never go through data protection compliance and they can't speak to him.

He MUST NEVER contact them.in 6 years debt is statute barred.

Refer him to National debtline, all info there.

Nobody need pay  unsecured debts if they don't wish to.

Get 2nd charges on any property asset, sorted.

18/05/2012
10:31 am
Cedric
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Paul,

Thanks for your advice.  I am really unhappy with my tenants news and you are absolutely right his first priority should be to pay my rent.  Where do these people think they are coming from saying that Payday Loan Company Debts are his priority and not my rent.  I could have months of these problems before I get to evict this tenant - not an avenue I have ever gone down before and frankly not a road I particularly want to travel.  But I do want paying so I guess it's not a problem that will go away.

 

By co-incidence this morning I was having my Breakfast while watching Daybreak and they discussed Payday Loan Companies and the current legislation concerning them.  There was a very smug and self satisfied spokesman for these Companies who basically said they were providing a social service for people who couldn't survive during the month on their salary.  For goodness sake if you can't make do with your money economise and take a few austerity measures !

During the same piece they interviewed on person who had got into a mess with these loans and eventually had to take out 63 just to pay the interest of the others ......where is the sense in this happening and where is the legislation to stop this happening.  It makes my blood boil as my Grandfather owned a Pawnshop and would have had the sense to know when someone was in over their head.  63 Paydan loans.........I just don't believe these Loansharks are responsible at all and should have been strangled at birth.  How sad that Governments have allowed this situation to evolve and now there are countless people in a spiral situation of debt and excessive interest.  No wonder we have allowed the fiasco of Greece etc to get out of hand.

 

To get back to my earlier point I am now resigned to the fact that next months rent on the 21st will not be coming my way and unless I take action soon further problems will be on the horizon.

I am a very annoyed Landlord.

18/05/2012
8:45 pm
Kirsty
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Here here Cedric, I hope that no one pays them and their irresponsible lending goes the same way this week as the Spanish bank "Suckling belly up".

I would like to know who funds these company's balance sheets and if they are able to borrow money at a favourable rate's using the low interest rates which are there to help our small businesses and home owners which are getting none of it.

Ironic that the Bank of England base rate is at 0.5% to help us all to get back our economy and lives and they only money freely available to all of us (and now businesses too) is loans at 2500+%. Really Mr Cameron do you honestly think that will kick start the country..very sad

18/05/2012
11:08 pm
PaulBarrett
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cedric said
Paul,

Thanks for your advice.  I am really unhappy with my tenants news and you are absolutely right his first priority should be to pay my rent.  Where do these people think they are coming from saying that Payday Loan Company Debts are his priority and not my rent.  I could have months of these problems before I get to evict this tenant - not an avenue I have ever gone down before and frankly not a road I particularly want to travel.  But I do want paying so I guess it's not a problem that will go away.

 

By co-incidence this morning I was having my Breakfast while watching Daybreak and they discussed Payday Loan Companies and the current legislation concerning them.  There was a very smug and self satisfied spokesman for these Companies who basically said they were providing a social service for people who couldn't survive during the month on their salary.  For goodness sake if you can't make do with your money economise and take a few austerity measures !

During the same piece they interviewed on person who had got into a mess with these loans and eventually had to take out 63 just to pay the interest of the others ......where is the sense in this happening and where is the legislation to stop this happening.  It makes my blood boil as my Grandfather owned a Pawnshop and would have had the sense to know when someone was in over their head.  63 Paydan loans.........I just don't believe these Loansharks are responsible at all and should have been strangled at birth.  How sad that Governments have allowed this situation to evolve and now there are countless people in a spiral situation of debt and excessive interest.  No wonder we have allowed the fiasco of Greece etc to get out of hand.

 

To get back to my earlier point I am now resigned to the fact that next months rent on the 21st will not be coming my way and unless I take action soon further problems will be on the horizon.

I am a very annoyed Landlord.

 

Yes I think you have to take the bull by the horns and advise the tenant that if he chooses to pay other credtors before any payment is made to you then you will evict him.

Most tenants would rather retain accommodation than be homeless.

No LL will take on a tenant with proven rent arrears,  so your tenant would be better off paying your rent and not concerning himself about repaying any of the pay-day loans.

The tenant would be advised to not pay ANY more payments to these PD companies,  not even a £1.00 and to contact national debtline , the free charity advice service.

NOBODY needs to pay for ANY debt advice or management.

The ONLY reason more people do not know about these FREE charity debt advice services is they do not have the advertising budgets of the commercial debt management companies.

In fact your predicament has got me thinking.

Whenever I take on new tenants I will provide them with information about these free services.

After all it could well assist the tenants pay  continuing rent payments.

Providing such info to tenants is surely in a LL interest.

Providing rent is paid, does a LL really care where the money comes from.

If by carrying out such pre-advice to a tenant the LL ends up being paid before other creditors then he has done his job in ensuring he continues to receive rent.

That isw after all what we as LL are endeavouring to always achieve; the rent being paid!!!

19/05/2012
11:49 am
Mary Latham
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I am sorry I have not read the whole thread but I wanted to add this comment.  Many landlords are now insiting that tenants who are reliant on benefits to pay their rent join a Credit Union and put an electronic payment in place before they give them the AST.  This means that the rent is ringfenced and cannot be spent by the tenant on other things.  It is an excellent system and will grow and grow when universal credit begins and no one can have direct payment even if a tenant has a history of rent arrears and is on direct payment now.

 

Apart from the payment system that wil help both landlords and our tenants Credit Unions are based on membership like a co-operative.  They give free money managment advice to members and help them to get their financial affairs in order.  Once a tenant has begun to save, even a tiny amount each week, they can talk about really cheap loans.  The CU staff will not allow a member to borrow  more than they can afford to repay and an electronic payment is put in place to collect the payments.  In my opinion Credit Unions are unsung heros and are a MAJOR part of the solution for those who have caotic lifestyles and poor financial skills - they are also the landlords & Agents best friend.

Follow me on Twitter @landlordtweets

21/05/2012
3:40 pm
Mary Latham
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Is the Turkey paying for Christmas or making sure that it controls the oven temperature?

 

WONGA funding NCAB research???????

http://www.guardian.co.uk/mone.....a-research

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21/05/2012
4:02 pm
Cedric
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Wonga in cahoots with Citizen Advice ?

More chance of Herod being a welcome guest at a Bar Mitzvah !!!

21/05/2012
4:21 pm
Paul Routledge
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Ha Ha now that has to be a conflict of interest.

I would like to be a fly on the wall when a tenant who has a loan with wonga @ 200,000,000% asks "should I pay my rent or my very expensive loan with my housing benefit and  £32 a week dole money"Laugh Oh my dear dear the lady a CAB will say " you must pay your loans first because you interest will only get bigger your landlord cannot charge you interest " – Really"!!!Yell

 

Paul Routledge CEO
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21/05/2012
4:32 pm
Mary Latham
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Paul Routledge said
Ha Ha now that has to be a conflict of interest.

I would like to be a fly on the wall when a tenant who has a loan with wonga @ 200,000,000% asks "should I pay my rent or my very expensive loan with my housing benefit and  £32 a week dole money"Laugh Oh my dear dear the lady a CAB will say " you must pay your loans first because you interest will only get bigger your landlord cannot charge you interest " - Really"!!!Yell

 

And the tenant will reply "but what happens if the landlord is a member of Landlord Referencing I might not find another home?"

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21/05/2012
5:22 pm
kirsty
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Hopefully the tenant will realise it may cost them a home to not pay the rent and instead of paying either of us he will invest in some "Brown corduroy trousers" 

21/05/2012
5:27 pm
Mary Latham
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kirsty said
Hopefully the tenant will realise it may cost them a home to not pay the rent and instead of paying either of us he will invest in some "Brown corduroy trousers" 

 

Hahahahahahahahaha..................

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21/05/2012
7:42 pm
PaulBarrett
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I think as Mary has suggested on many occasions such decisions by tenants on how to utilise their benefit will disappear when LL insist on payments being made via a CU.

With the rent ringfenced a LHA tenant will not even have the choice of making such a decision.

This is going to come as a shock to lots of LHA claimants when UC is introduced when they are used to spending LHA on things other than rent.

In fact Mary's advocacy for CU is so compelling that perhaps the CU methodology should be introduced by all LHA LL so that they are ready for when UC is ultimately  introduced.

I have just discovered that a tenant of mine is going through a LHA claim.

She does not use a CU and pays me direct.

Now fortunately I have a RGI policy on her; so if she doesn't pay I will just advise the RGI company and they will get rid of her whilst I receive the rent via the RGI company.

Were it not for my RGI policy, which makes me effectively bullet-proof I would be having all sorts of problems;  how would I pay the mortgage?

11/06/2012
12:51 pm
Cedric
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Sorry for returning to this subject, but it is a particular hobby horse of mine and irritates me beyond belief.

I've read a report from the Local Data Company this morning that reckons that since 2008 Britain's high streets are being swamped by betting shops, pawnbrokers and payday loan companies.  Believe it or not, the number of such companies have increased by 25 percent in the last four Years and there are now unbelievably around 8000 betting shops nationally.

What on earth is happening ???

It's no surprise to me that the greatest concentration of pawnbrokers, pound shops and betting shops is to be found in London, The North West and the South East.  A trip down Golders Green will soon prove this point to you and although they say you are never a few feet away from a rat in London the same seems to be the case for Payday loan companies.  In fact I would be hard pressed to spot the difference !!!

Figures in this report clearly state that 29 percent of payday loan companies can be found in London - a terrible reflection on the new society and clearly "we are all in this together" as you can't move too far down the local high street without seeing one of these blasted shops.

One of my favourite shows in the 60s/70s was Dads Army and to remember Private Frazer "we are all doomed"

12/06/2012
1:07 pm
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