Saturday, 17 August 2013

Campaign against Payday loan firms launched

Plaid Wrecsam and local trade unionists launched our campaign against PayDay Loan companies today. There was a great response on the street - people really hate these legal loan sharks.
 Both Cash Converters and The Money Shop were targetted and many people stopped to talk about the problems people face.
 Most interestingly, one of our members went in to ask about the rates. A £100 loan until the next payday would cost £130 - a staggering 30% monthly interest which equates to a ridiculous 400%+ APR. Although the member isn't currently working, she was still offered the loan subject to some bank checks - so these "payday" loans are in fact being offered to people on benefits.
 The Plaid Cymru leaflets distributed on the day pointed people in the direction of the local credit union in King Street. A similar £100 loan would cost just £2 a month in interest.
 What is needed now is for the North Wales Credit Union to start pushing its positive message far more openly that small weekly or monthly savings can allow members to get low-cost loans for the emergencies in life. The Payday loan sharks are far more likely to get that trade when they're aggressively pushing their offers in the high street.
 Plaid AM Bethan Jenkins is currently consulting on a new Welsh law to tackle legal loan sharks by introducing "financial literacy" in schools.


Anonymous said...

The manager seemed a bit less aggressive today than the last time we were outside his shop! Perhaps he didn't fancy 10 people outside his shop every Saturday...

Alwyn ap Huw said...

One of the things I hate about Socialism is the way that you Middle Class Socialist "presume" to know "what is best" for us who actually live on the breadline!

What is the point of working out the annual percentage rate of a loan that has to be paid back in a week or a month?

If my Gas standing order for £50, is due on Wednesday, but there won't be any money in the account until Friday the bank will charge me £30 non payment fee and the supplier will charge me a £25 non payment fee, I may well be charged the fees twice or thrice before the standing order is honoured. The accumulation of charges might mean that the next time money goes into the bank every penny is wiped out by charges!

A payday loan (and those of us on benefits are "paid" our benefits incidentally) might be a damned site cheaper than the accumulative cost of non payment charges!

As much as I love and support my local Credit Union, it does not offer an alternative to a Pay-Day Loan. If I want to borrow from the CU I have to apply for a loan on Monday, I won't get a reply until Friday, and the money won't be in the account until he following Friday by which time the bounce charges will already have been added to my Gas/Bank accounts.

And and as the lower APR will be charged over 12 to 24 months the ACTUAL repayment amount might be MORE than the Total Sum charged for the couple of weeks loan from the Payday lender.

Until you have lived a life where you "need" a payday loan don't criticise those who offer them or those of us who accept them!

Plaid Gwersyllt said...

See also

Plaid Gwersyllt said...


I'm sure you wouldn't like us coming on to your blog to tell you what you can and cannot criticise so let's get that straight. This is our opinion, you have your own, so be it.

Some CU's are better than others mine for example will sort out a loan overnight.

You want to borrow from a Pay-Day loan company then you do so, we prefer to try other 'healthier' options.

Alwyn ap Huw said...

Interesting response!

Rather than defend your middle class socialist attitude to a type of loan that you will probably never need you create a straw man about who can or cannot say what on blogs!

So that there is no spurious debate - I have no objection to your right to say anything on your blog, or indeed (as you often have) to say anything in response to posts on my blogs.

What it appears you are not willing to discuss is the actual hardship that a ban on payday loans might cause to those who use them responsibly.

Yesterday on Report Wales there was an item claiming that "bad debt" added £20 to every paying customer's water bill. In the mid 1990's Dŵr Cymru introduced a pre –pay water bill scheme for customers who had difficulties in paying. Those who would never need such a scheme objected to it and it was withdrawn. If it hadn't been withdrawn would the debtor's surcharge be so high?

Another recent trendy "help the poor" policy from the ladies bountiful in all parties is to force gas and electric companies to supply the "cheapest tariff" to all households, ignoring the fact that the most expensive tariff – the payment meter is the best offer for the majority of poorer families.

I am not an idiot who doesn't realise that borrowing £50 this month and borrowing £70 next month to pay off last month's £50 + interest isn't a problem. But banning the availability of the quick high interest short term loan to all is not an answer to that problem. Banning them will further impoverish the majority who use their availability reasonably.

If you really want to stop people from using Payday Loans, canvas the major banks to accept four-weekly direct debits rather than just date of the month ones. Because the biggest need for a payday loan is that the payments go out a week or two before the wages go in four or five times a year and the bank charges are more than the loan charges.

But then if you knew what poverty was, rather than theorised about it from a trendy middle class prospective, you'd know that!

Plaid Gwersyllt said...

You seem to be the one out on a limb Alwyn, there is a general consensus amongst others outside your perceived 'middle class bubble' that Pay-Day loans are bad for you. End of conversation...

Anonymous said...

Do you have any video of that? I'd like to find out some additional information.
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Ranjit Singh said...

hi nice information appreciate your work.

Payday Loans

Alwyn ap Huw said...

I am "out on a limb", because I have used a facility that you cannot perceive having the need to use Arfon!

I have needed that money till pay day, you have not! Lucky you!

Can you not accept that those of us who use those facilities will be worse off if you who don't need, or understand our station prohibit them?

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