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AIBU?

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Original poster

To think these loan companies should be shut down!

31 replies

BitGutted · 27/09/2020 11:53

So we've had a flyer thru our door from provident loans asking us to contact our "local friendly rep" if we want a loan!!

People have had a tough year with covid but borrowing £100 for Christmas and adding about £50-70 on (interest, depending on how long it takes to pay back) is surely unlawful and taking advantage of the most vulnerable people in society and just shouldn't be allowed surely???

I'm just gobsmacked 😶 people like this can operate

I'm considering setting up a national petition to get them shut down!!

OP posts:
peonyblossom · 27/09/2020 11:56

Good lord, are Provident still going? I'm surprised. Payday loans (which is what these are) have been almost regulated out of existence.

I hear you, OP. But it is worth remembering that some people will borrow regardless and it's better that they borrow from Provident that someone illegal. You'd think that doesn't happen in 2020 but sadly; it does.

Irresponsible lending is definitely still a thing but so is irresponsible borrowing!

greeneyedlulu · 27/09/2020 11:56

Agree, these people are vultures!!

MaskingForIt · 27/09/2020 11:58

There are plenty of people for whom giving their children a good Christmas is more important than getting into debt.

It is better that they borrow from a regulated company than Jim down the road who’s dad sorts people out.

People will always have the option not to take out loans.

TazMac · 27/09/2020 11:59

Agree that these companies are shocking.

I also think it’s too easy to get into debt with high street lenders.

I think they should be made more responsible for lending to people who can’t pay back.

TheQueef · 27/09/2020 11:59

There are plenty of these legal sharks still operating.
Just think how long Provi has been around they make far too much money to be closed.
I hate them with a passion.

Ponoka7 · 27/09/2020 12:02

I've had provident loans, I didn't have a choice and as said, not giving my children a Birthday/Christmas wasn't an alternative. It was £10 a week repayment, knocked for on a Monday when I got my CB, so wasn't a hardship to pay back.

Credit Unions have been closed and people are in hardship because of reduced hours.

TazMac · 27/09/2020 12:34

not giving my children a Birthday/Christmas wasn't an alternative

I feel so sorry for your children.

Original poster
BitGutted · 27/09/2020 12:38

I just find it hard to believe in 2020 this is allowed

I know people struggle, we've had rough times but I usually eBay stuff and buy things with the PayPal money infact I save my PayPal up for Christmas from selling stuff throughout the year as my friend did it and suggested it

I just think it's so sad people are getting into debt for Christmas

OP posts:
Merryoldgoat · 27/09/2020 12:41

My mum was always paying Provident - it was hideous.

peonyblossom · 27/09/2020 12:53

Sub-prime lending (not being offensive it's what it's known as, people that have sub-prime credit records) is still a very big market. People with little to no money and/or a poor credit history have borrowed always and will continue to do so regardless of what the regulations say.

It is better for them to do so from a company, who is regulated and has to follow the very specific legislation set out for these sorts of lenders than somewhere shady. Sub prime credit is expensive, because statistically there is a far higher risk of default. Higher risk for the lender = higher cost for the borrower.

It's ok saying you can't believe it's allowed to happen when you are someone with access to mainstream credit.

x2boys · 27/09/2020 13:00

What do you suggest instead ? Years ago we had some payday loans ,so you borrowed £100 and paid back £125 ,, fortunately we are in a position not to need them anymore ,but not everyone can get bank loans,credit cards ,overdrafts etc .

Waveysnail · 27/09/2020 13:02

Provi man. Been around for years. O ly way for people with crap credit to borrow money sadly. I always point people towards credit union as an alternative

YerAWizardHarry · 27/09/2020 13:04

I remember having to lie to/hide from the "provvy wifey" growing up.. not a nice existence to live my mum must have been desperate.

Oswin · 27/09/2020 13:05

@TazMac

not giving my children a Birthday/Christmas wasn't an alternative

I feel so sorry for your children.

Well that's rude dont you think? Why do ou feel sorry for them?
Meruem · 27/09/2020 13:05

I was taking out provident loans 25 years ago when the DC were small. It does become a vicious circle because the money I had to pay back to them meant I couldn’t put money aside for Christmas etc so would then need to borrow again. That being said, I wasn’t eligible for any other type of credit so sometimes it was necessary. I can still remember the day I finally paid them off for good and didn’t get any more! I do think provident are the least bad of these types of loan companies. If you need a lump sum for something and can’t get it anywhere else then what are you going to do?

SmudgeButt · 27/09/2020 13:24

Like others I would prefer a regulated loan company than some shark. Fortunately I have a good enough credit rating so can stick to the high street.

SmudgeButt · 27/09/2020 13:24

Like others I would prefer a regulated loan company than some shark. Fortunately I have a good enough credit rating so can stick to the high street.

SmudgeButt · 27/09/2020 13:26

AND whilst I agree that one might find the money by ebaying and buying using paypal that assumes the individual is well off enough to have the IT that makes this possible. Not all do.

SmudgeButt · 27/09/2020 13:27

AND some people have carp IT that does stupid things like double post....

Jeezoh · 27/09/2020 13:29

Better a regulated firm than a loan shark, the FCA sets rules around how many times a loan can be rolled over which is a step forward, plus access to a proper complaints handling system.

SkyeIsPink · 27/09/2020 13:30

They operate because there is still a need for them. There are still plenty of people who can’t access credit and don’t have items they can sell on eBay.

With the economy about to nosedive, there business is probably booming

SkyeIsPink · 27/09/2020 13:30

*their

TazMac · 27/09/2020 13:49

Well that's rude dont you think? Why do ou feel sorry for them?

Because they are living in a situation where their mother has to use a payday lender to treat them on their birthdays and at Christmas. That isn’t healthy or sustainable. It shouldn’t be happening.

MayIJustAsk · 27/09/2020 13:58

I had to Google what they are. I suppose some people have no choice though. I couldn't not give my son a pile of gifts at xmas. Don't know if it would be different if I suddenly could not afford to do this, would I be tempted.... possibly.

peonyblossom · 27/09/2020 14:22

With the economy about to nosedive, there business is probably booming

What does everyone think caused the last boom in payday lending? The recession! It became a huge industry almost overnight in the mid/late 00s. The companies that were around then are almost all gone now because the change to the FCA (from the OFT because the FSA never actually defaulted payday lending despite popular belief that they did) brought about change that meant they could no longer operate profitably.

At least this time around (because of last time) it's much more tightly regulated. Last time around it was a total free for all, under regulated, non compliant even with the loose 'guidance' there was at the time. Very little protection for the borrower, who often ended up in a spiral of debt that was impossible to get out of.

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