PayDay Loan Sharks...

Unfortunatly Payday Loans are a licenced credit broker, they are legally entitled to charge whatever charges they wish, Companys like this incliding Provident prey on the vunerable and exploit the needy!, I would never entertain such a company and if you do there are ways to get round them in the Uk, if anyone finds themselms in trouble with such companies you can contact the Community Legal Advice Service and they will liase with the company on your behalf and agree a resonable re-payment plan due to individual circumtnces.

I think that Payday loans can be a good alternative for responsible people who happen to have a family emergency and they don't have money at the moment. This is a business and they need to charge you a fee in order to make money ,and they need to protect themselves from people who like to borrow money and dissappear.

No, I never got into payday loans. Credit cards were bad enough without making things worse with a rip off like that. I usually try not to have to borrow money, and things are looking much better now.

I would never get a loan from one of those places or one of those that loans you money on your car title. The interest rate alone will kill you. It is ridiculous the amount of interest that you have to pay. My granddaughter got a title loan on her truck and borrowed $1000. By the time she gets done making the payments, she is going to be paying well over $2000 back. It isn't worth it. Save the money instead of borrowing from one of those places. Or try a regular bank. It is much safer and much easier.

Hi twoey, I would also call them legal loan sharks, but I've never fallen for it myself, although a close friend did. He finally managed to get rid of them. I think it is terrible because they prey on seniors on social security, and those people receive very little to start with. No one should have the right to prey on the most venerable in society. Blessings.

That is really a bad situation to get in, that sort of thing is really hard to get out of. I have never done it, but what I have done is had a doorstep loan. This is when a company lends money out to you and then comes and collects it back weekly. Loads of us single mums used to use this lady. They were great loans at the time, I would have the money but then the interest on them was always really high and so it would take me a year or more to pay it back, I eventually managed to get rid of it and then I never had another after that. If I need to borrow money, I just use my bank overdraft, but these days I tend to just live within my means now.

I have never gotten sucked up in this at all because I for one don't have a steady income never have but my mom has and has been sucked into it for about 8 months now. She pays back the money then had to borrow more to live on the rest of the month she is one social security also ans so is my dad. But with the heat being so outrageous she had to borrow money or freeze she still hasn't gotten out of the loop yet. I told her that she will have one bad month but she needs to get out of it or it will continue forever. The one she goes to is Payday Express. It always states on signs and commercials never borrow more then you can pay back or can afford to do without. But I see alot of people get sucked into it, that and the Pawn shop then they repawn to have enough money to live on. My brother does the Pawn shops every month. I don't pawn anything or borrow.

I think it can be a very bad thing.. if you can't pay it back right away you end up losing twice as much money! It might work ok if you do borrow only for a day or two then pay it off then the fee isn't as high.. and you don;'t keep rolling over the owed amount and just paying the fees week to week. My son used them once and found out it could be a bottomless hole..

I havent but my kids have had to a couple of times and I think they pay $20 each time making a payment so takes 8 pay checks to get $200 paid back they try not to do this to darn ofeten

It took my stock options to get me out of the 'legitimate' credit card cycle I got myself into - and it appears this kind of operation is more insidious? Isn't there an application one needs to sign that specifies the terms of the loan? I know of a place - give me a week and I will post the form (unless someone has more time on their hands and beats me to it ...)

My sister was doing the exact same thing for a very long time and it scared me. She would pay off one and then go take out a loan at another the very same day. I know that she has paid them all off now, but I was concerned about her for a while. She had a husband, six kids, and a mortgage at the time. Not to mention, she was the only one working. I am so glad things are better for her now.

she got sucked into 3 of them! EGADS! I figured it out the first time I saw one and so did the roomie, we were both astounded they were even LEGAL! I did have to explain the idea to a friend, but once she understood she couldn't understand how they were legal either! I guess they serve a need, but I can't really understand why people can't figure out that they end up with less money in the long run until they have none at all! In an emergency I could see, but far better to pawn something than get yourself into that kind of situation.

HECK NO!! lol My husband's ex-wife used to sell things to the pawn shop and get it out on payday but I would never ever do that because it's a huge cycle that is very hard to break from. We'll use our credit card only when we HAVE to and that's it, such as now because of my mom being in the hospital, she needs our love and moral support but it's costing us a pretty penny thanks to the gas prices. Ugh

I guess that would depend on your definition of loan shark. They charge a high fee for their service, yes, but I imagine if someone was really in a bind for a specific need during that period, AND had the money to pay it off easily from the next check without getting in another bind, it could be a savior. It's no different than credit cards, except you are paying those over a longer period. If you charged $100 on a credit card and paid nothing but the minimum required every month, that $100 would cost you quite a bit more than most people realize. Both have their place, as long as you aren't suckered in thinking it's free money. Unfortunately, most people aren't responsible with either type of debt and yes, it will get them into trouble. I've not used that type of service, and pray I never have to.

I think payday loan companies are awful. I don't understand why it is legal to charge such high interest rates, and I think they are preying on people. I can see where for some people, they might have an emergency and need such a loan, but I think the payday loan places take advantage of this by charging exorbitant rates and by encouraging people to renew.

Oh yes, we are stuck in 4 of them but we are about to get out of 2 of them next month. The thing is with these places is that they are so easy to get money from when you can't get it from anywhere else. I don't know if you have heard but the banks are trying to get them all closed down and banned for good. I hope it happens too because that will be the way we get out of them and stay out of them. My husband and I were out of them at one time and something came up where we needed the extra money so we went back and have been stuck again ever since. My mom and dad are also stuck in 2 of them and they are having a hard time getting out of them for good. It wouldn't be so bad if you didn't have to pay the whole amount back plus the high interest all at once, then you have to go right back and borrow more and it keeps going and going and going until you don't know what to do. It is like one big circle and seems like it will never stop.

Oh yes we have them on every corner here, but the state has taken it up and no more to open in our area and also they charge 300% interest on the loans and like you said same thing as borrowing from a loan shark. I moved and rented a u-haul truck, it was $19.95 for 24 hours,(right) that is before they add all the extras when you go to take it back. Anyway when I went back they had a bill for over $100. I didn't have the money so they suggested the payday loan. When I went there they said ok but only like to loan in amounts of $200. Now we live on a fixed income, but I had to pay for the truck, when it came time to pay it back I went there, they already had the paper work made out for another loan, knowing that you would be short already $200. in pay when you come in to pay them. Now I don't have enough to pay my bills so you go to another one and take out a loan and you have 2 now to pay. I paid one off and then had to deal with the other. It was a cycle and that is what they depend on, is once they get you in you can't get out. I contacted a lawyer about what to do and what would happen if I just didn't pay and he said they would take me to court. I didn't have to worry about them taking it out of my checking account as I had nothing to put in there after paying them. Well I got threatening letters and at one point I talked to a lady that said paying some every month would be better than not paying at all, so we agreed to $20. that I would take there the next day, I went with my $20. the next day and was told NO! They would not except it. I tried to explain who I had talked to and this was the deal they made for me to repay, they still refused. About a month later I got a letter from their office that was also from an attorney that stated some how my information got by MISTAKE, put out in files that they where doing away with,that they was put out in a pile by the trash and not shredded like law says they were suppose to be for privacy reason, that they was hoping that no one came along and got them, but this was just letting me know someone could have my bank account info. That the employees had been fired because of not shredding the files as law states. Well now I don't know what to do, so I called the lawyer back and he said if this is the case and they did do that then they have no paper work to say you ever had a loan with them and if they pursue the matter then you have the letter and I don't think they will do anything to get into court, so next time they called I read them the letter and they was so shocked they did not know I had been notified. She said it was correct they didn't have anything to show I had a loan with them, but would I be nice and bring some money a little each month to pay them, (now isn 't that what I tried to do before) I just hung up. While I know that I owed them, it is a scam you can never get out of and they have no problem with having you trapped in their loan shark business. Don't ever get into it if you can keep from it. Our state is making them lower the interest rate they can charge a person and if it a loan they want it done to where it can be paid back so much each month. What they are hoping to do is put some of them out of business,

Colorado tried to pass a law to limit how much interest payday loan businesses could charge. The bill was defeated mainly because the business owners said the bill interfered with free trade and would put them out of business. Since Colorado Springs has a large military population, many of these businesses have set up shop near the bases. I know borrowing money from friends or relatives makes some people uncomfortable, but they don't charge interest (at least I hope not!)

twoey68 my son got caught up in that and he did the same thing, going from one to another to a third one, 'which ended up with his not being able to pay the rent and having finally to cash in on his ira to pay off these loan sharks and the utilities and rent. so never again he is now back in the black but it was a costly lesson for him and for me as I had to help; out and I only have my social security to use.

You are right about payday loans being a vicious cycle...as I have been doing this for several years. Because once you begin one if you cannot pay them off on the first loan (which is usually free of interest to new customers-their catch to bring you in) you have to start paying interest after the second loan. They are not illegal, but I do consider them to be loan sharks. And they do not always automatically withdraw money from your account. The one that I go to you have to physically come in pay it off and then I reborrow to cover my bills for the next two weeks. And I am not sure how your mother in law was able to borrow from multipile places. Because at least around my part of the country you cannot borrow from more than one or two. Somehow they are linked in a system and you can get denied if you have too many...I had a friend once who took out 2 loans and tried for a 3rd but was denied b/c of this rule. I am trying to rid of this hassle of borrowing money at such a steep cost (I have added the interest up and basically I could have bought a decent used car in one years total of interest paid). But it is hard, because even when extra money (like tax return) comes in other things come up. They are just like a glorified bank in my eyes, who don't check your credit for a loan. My advice to anyone considering this, you better think twice. Because once I get out, I pray I never get back in.