Poll: What do you think about these companies?
Poll Options
View poll results: What do you think about these companies?
If people are stupid enough to fall for it then what's wrong with them?
19 31%
Companies like this should be banned.
34 55%
I don't see anything wrong with it.
6 10%
Other (Please state)
3 5%
Voters: 62.
#1
A lot of UK pitgoers may have seen the adverts for Quick Quid and similar companies. These companies offer same day loans to those than need it most and charge huge amounts of interest, in Quick Quid's case 2278% APR, as well as a 'finance charge' meaning for every £50 borrowed and extra £10 to £15 is added on.

Does anyone actually think that this is a good idea?
hello
#3
Desperate people do.
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#4
Haha D: that's lame. Even i know (here in the u.s.) they can charge you up to 700% interest D:

in other words, no I would never use one unless i knew i could change 1k into 7k without any ground.

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#5
Well, at least those companies won't take your thumbs if you miss your repayments.
#6
I think that people should be better educated when it comes to stuff like taking loans.
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#7
Quote by Ylasto
I think that people should be better educated when it comes to stuff like taking loans.

Absolutely. That would solve a lot of this.

Payday loans = legalized scam.

[IN PHIL WE TRUST]


Quote by Trowzaa
I only play bots. Bots never abandon me. (´・ω・`)

#9
I must admit, I came into the thread thinking we were going to discuss this awesome game
#10
Yeah payday loans are a huge bullshit scam. Of course, as far as money management, things are just screwed up. My family was approved to buy 2 houses when we were looking at a second one, we were approved to get payments on two houses that we couldn't even afford. Of course we didn't take it, the point is that we were approved, which is completely ridiculous.
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#11
its such a scam.
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#12
Quote by ninjaapirate
Yeah payday loans are a huge bullshit scam. Of course, as far as money management, things are just screwed up. My family was approved to buy 2 houses when we were looking at a second one, we were approved to get payments on two houses that we couldn't even afford. Of course we didn't take it, the point is that we were approved, which is completely ridiculous.

You do realize that it's not the government that approves you, but the bank yeah? They're saying that they're willing to loan you the money. They expected you to be able to afford it... Plus accepting one would likely affect your credit ratings and such and might put you out of the running for a second anyway.
#13
Quote by captaincrunk
You do realize that it's not the government that approves you, but the bank yeah? They're saying that they're willing to loan you the money. They expected you to be able to afford it... Plus accepting one would likely affect your credit ratings and such and might put you out of the running for a second anyway.

Either that, or they thought there was a decent chance of getting their money back by repossessing and selling if you default.
#14
Quote by captaincrunk
You do realize that it's not the government that approves you, but the bank yeah? They're saying that they're willing to loan you the money. They expected you to be able to afford it... Plus accepting one would likely affect your credit ratings and such and might put you out of the running for a second anyway.

I never said anything about the government.... But yeah the bank knew how much money we made and that that number wasn't going to change barring some very unforseen circumstance. It's why our housing market has gone to shit now. And no, we were approved to buy a second house when we already had one.
Guitar:
Jackson DX10D Dinky
Ibanez Tone Blaster 150w head
Line Six 4x12 cab
Marshall MG10CD
Dunlop Crybaby from Hell

Bass:
Ibanez ATK
Random ass EQ thing that's not even a real bass amp
1x18 2x10 cab
#15
Quote by MightyAl
Either that, or they thought there was a decent chance of getting their money back by repossessing and selling if you default.

Where did I say they wouldn't? And doesn't that apply to everyone who applies for any loan of significance?
#16
Quote by ninjaapirate
I never said anything about the government.... But yeah the bank knew how much money we made and that that number wasn't going to change barring some very unforseen circumstance. It's why our housing market has gone to shit now. And no, we were approved to buy a second house when we already had one.

Well, it's not the house you're approved for, it's a loan. A 100,000 USD mortgage really isn't that difficult to pay on.
#17
Quote by captaincrunk
Well, it's not the house you're approved for, it's a loan. A 100,000 USD mortgage really isn't that difficult to pay on.

Yeah, the loan. Plus it was more like a 250k and 300k mortgage, approximately. The bottom line is we couldn't have afforded it and yet we were somehow approved, I don't understand the whole process.
Guitar:
Jackson DX10D Dinky
Ibanez Tone Blaster 150w head
Line Six 4x12 cab
Marshall MG10CD
Dunlop Crybaby from Hell

Bass:
Ibanez ATK
Random ass EQ thing that's not even a real bass amp
1x18 2x10 cab
#18
BAN THEM. Nobody deserves to be taken for a ride like that. Nothing short of money laundering and the bosses should be shot.... no thats too good for them, BURNED.
#19
Quote by ninjaapirate
Yeah, the loan. Plus it was more like a 250k and 300k mortgage, approximately. The bottom line is we couldn't have afforded it and yet we were somehow approved, I don't understand the whole process.

If you don't understand it why make declarative statements about it's quality?
#20
Quote by ninjaapirate
Yeah, the loan. Plus it was more like a 250k and 300k mortgage, approximately. The bottom line is we couldn't have afforded it and yet we were somehow approved, I don't understand the whole process.

The bank's plan was this:

1. Approve two loans.
2. ?
3. Profit.

The banks make all their profit off fees and loans (mostly loans). Somehow they thought you guys were gonna make them money.

[IN PHIL WE TRUST]


Quote by Trowzaa
I only play bots. Bots never abandon me. (´・ω・`)

#22
Quote by Mistress_Ibanez
It's ridiculous. So if you borrow £500 how much would you owe them?

The idea is they give you money now, you give them your paycheck when it comes in in a few days. You lose money, but you get some now for whatever reason you needed it.
#23
^Coke.
Quote by Mistress_Ibanez
It's ridiculous. So if you borrow £500 how much would you owe them?

How long are you taking to pay it off? That 2000% APR will add up in a hurry.

[IN PHIL WE TRUST]


Quote by Trowzaa
I only play bots. Bots never abandon me. (´・ω・`)

#24
Quote by Mistress_Ibanez
It's ridiculous. So if you borrow £500 how much would you owe them?

I'd hate to think. You can borrow up to £1000 too.
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#25
Quote by captaincrunk
The idea is they give you money now, you give them your paycheck when it comes in in a few days. You lose money, but you get some now for whatever reason you needed it.

The problem is that they don't take a lot of notice of your credit rating. So people with low credit ratings who need money long term will use it and owe huge amounts.
hello
#26
they have in pretty big writing on the adverts that it's got that kind of interest, honestly, I don't think anyone's stupid enough to do it, but I'm sure I'll be proven wrong. I realise there no limits to human stupidity.
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#27
Quote by captaincrunk
The idea is they give you money now, you give them your paycheck when it comes in in a few days. You lose money, but you get some now for whatever reason you needed it.


Yes, I am familiar with the concept

And Mr. Smith, they've only just added in the huge fonts with the APR. I've seen the same adverts in the past with it in very very small print, so some legal proceedings must have made them change it.
Last edited by Mistress_Ibanez at May 25, 2010,
#28
Quote by opc100
The problem is that they don't take a lot of notice of your credit rating. So people with low credit ratings who need money long term will use it and owe huge amounts.

Not everyone who uses these things are in massive debt, you know. Should we ban mortgages because some people default?
#29
Quote by jgbsmith
they have in pretty big writing on the adverts that it's got that kind of interest, honestly, I don't think anyone's stupid enough to do it, but I'm sure I'll be proven wrong. I realise there no limits to human stupidity.

If no one did it, these companies wouldn't exist.

[IN PHIL WE TRUST]


Quote by Trowzaa
I only play bots. Bots never abandon me. (´・ω・`)

#30
Quote by captaincrunk
Not everyone who uses these things are in massive debt, you know. Should we ban mortgages because some people default?

Most mortgages don't offer huge interest.
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#31
Quote by opc100
Most mortgages don't offer huge interest.

And...? Who gets to draw the line on the interest percentage I can accept? I choose me, I'll choose what loan I accept.

EDIT: If used correctly there isn't any problem with a payday loan. If used incorrectly it's just as dangerous as anything else.
Last edited by captaincrunk at May 25, 2010,
#32
Quote by captaincrunk
And...? Who gets to draw the line on the interest percentage I can accept? I choose me, I'll choose what loan I accept..

That's ridiculous. There needs to be regulation to protect people in desperate situations.
hello
#33
Quote by captaincrunk
EDIT: If used correctly there isn't any problem with a payday loan. If used incorrectly it's just as dangerous as anything else.


Yeah, just the crippling interest.

Quote by opc
That's ridiculous. There needs to be regulation to protect people in desperate situations.


That's true, but I don't think you can eradicate ridiculous loans completely ; as always, there needs to be better education and awareness concerning the interest rates. Someone who takes one of these loans uninformed will suffer.
#35
Quote by Don_Humpador
Yeah, just the crippling interest.
Right, and gambling is pretty dangerous too. It's still around, no?


Quote by Don_Humpador

That's true, but I don't think you can eradicate ridiculous loans completely ; as always, there needs to be better education and awareness concerning the interest rates. Someone who takes one of these loans uninformed will suffer.

And someone who needed to, say, pay bail on their relative would greatly appreciate it.
#37
Those who live paycheck to paycheck may incur an unexpected cost (car breaks down) and they need a car to get to work. So you take out a loan so you can fix your car and get to work so you don't lose everything, you just have to pinch pennies for a while. Of course it's a scam, but if you're in the lower-income bracket with a shitty credit score, you don't have many options
#38
APR stands for annual percentage rate. Payday loans are not designed to be taken out and repaid over a year. Therefore any discussion of fees based upon annualization is neither accurate nor reflective of the product. It's the financial equivalent of saying that a Big Mac has 475,000 calories in it, which it would if you ate one every single day for a year.

Payday loans are designed to be taken out and repaid when you get your next paycheck. Most lender charge between $15-$25 per hundred borrowed, so for a $500 payday loan you'll pay between $75 and $125 in fees.

Expensive? Hell yes. But better than losing your car, your lights, your home. And certainly not nearly as predatory as politicians make it out to be.

If you want to look at something that is predatory, let's talk about NSF fees, overdraft charges and big banks' "rack and stack" policy.

Just my .02
#39
Quote by captaincrunk
Right, and gambling is pretty dangerous too. It's still around, no?


Yes it is. Taking a loan like this could be considered a gamble. It's not marketed as such. There's a difference.

Quote by captaincrunk
And someone who needed to, say, pay bail on their relative would greatly appreciate it.


I'm sure they would. But we're not talking about thousands of people taking a payday loan out to pay bail, are we?