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The Cash Store folds with the loss of 120 jobs

The payday lender’s UK operation, which has its head office in Stockport, has been shut down completely

Almost 120 jobs have gone after payday lender The Cash Store went bust.

The company, which has its UK headquarters in Stockport, has entered into administration with FTI Consulting appointed as administrators.

The Cash Store Ltd is a subsidiary of The Cash Store Financial Services Inc and expanded into the UK from Canada.

It has 506 branches in Canada but its 27 UK outlets – many of which are in the north west – are to close.

Administrators FTI said 13 people have lost their jobs at the company’s UK headquarters in Stockport.

Other branches to have suffered are Bolton, Manchester, Rochdale, Blackburn and Preston.

The Cash Store provides a cheque cashing facility which enables the customer to gain instant cash.

The firm also offered the facility to wire transfer money worldwide to more than 135 different countries.

Cash Store Financial operates its Canada branches under the banners “Cash Store Financial” and “Instaloans”.In a statement the administrators said: “Cash Store was loss making and had been reliant on funding from its Canadian parent company which was recently withdrawn. “Cash Store operated as a pay day loan business from 27 stores in the UK and was FCA regulated. “The majority of the stores were based in the north west of England and yorkshire.”Efforts have been made in advance of the administration to seek a buyer of the business as a going concern. “Unfortunately no offers were received for the business as a going concern. Therefore, the business is ceasing to trade with immediate effect and the loans have been sold to a third party.”Customers will be contacted in due course by the purchaser of the debts with information on how customer accounts will be handled.”Unfortunately all of the Cash Store’s 120 employees will be made redundant, the majority with immediate effect. “The administrators’ team are working with the employees to support them in their applications for statutory entitlements. All employees arrears of wages have been paid in full.”Cash Store Greater Manchester redundancies in numbers:Stockport – 13Ashton – 3Blackburn – 3Bolton – 5Bury – 1Farnworth – 1Manchester Fountain Street – 2Rochdale – 1Wigan – 3 […]

Sham Payday Loan "Reform" Passes Committee | Progress Missouri

Submitted by Sarah on Wed, 04/02/2014 – 01:53

This morning the Missouri House Financial Institutions Committee passed the sham payday loan “reform” bill. Ten Republicans and five Democrats voted in favor of the latest iteration of Sen. Mike Cunningham’s SB 694:

Rep. Tony Dugger, R-Hartville Rep. Wanda Brown, R-Lincoln Rep. Sandy Crawford, R-Lebanon Rep. Kevin Engler, R-Farmington Rep. Keith English, D-Florissant Rep. Paul Fitzwater, R-Potosi Rep. Paul Hinson, R-St. Clair Rep. Shelley Keeney, R-Marble Hill Rep. Andrew Koenig, R-Manchester Rep. John Mayfield, D-Independence Rep. Mary Nichols, D-Maryland Heights Rep. Noel Shull, R-Kansas City Rep. Clem Smith, D-Velda Village Hills Rep. Jay Swearingen, D-North Kansas City Rep. Paul Wieland, R-Imperial

Missouri has some of the loosest payday lending laws in the nation. Reform is desperately needed, but this bill isn’t it. Governor Jay Nixon and newspapers across the state, including the St. Joseph News-Press, the Kansas City Star, the Springfield News-Leader and the St. Louis Post-Dispatch have all denounced the bill as a sham. The average interest rate on a Missouri payday loan is an astronomical 455%. The industry thrives on repeat customers who are forced to take out subsequent loans to repay the interest and fees on their first loan. SB 694 does nothing to help consumers stuck in a cycle of debt. The “restrictions” imposed by this legislation sound tough but are easily side-stepped by predatory lenders, which is exactly why their lobbyists support it.

The bill was amended this morning to “restrict” interest rates to a mere 912% – still far above the average of 455%. Allowing predatory lenders to charge Missouri consumers outrageous 900% interest rates is not reform. Under this version, a consumer who borrows $350 will owe interest amounting to $122.50 in just two weeks. Consumer advocates have long pushed to cap these loans at 36% annual interest, just like we do for members of our military.

SB 694 is masquerading as reform of Missouri’s out-of-control payday lending industry. 912% interest rates are not reform.

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A new year sees a new push for payday lending in Pa.: Monday …

Good Monday Morning, Fellow Seekers.
After being rebuffed in 2012, there’s a new movement afoot to legalize payday lending in Pennsylvania, a practice that critics say preys on the poor with the promise of quick cash upfront, but punitive interest rates on the back end.

Legislation that cleared the House in 2012 is now before the state Senate, amid a vigorous push by the industry to legalize such loans in Pennsylvania, where they are now illegal.

“We’ve seen nationally since 2005 that payday lenders have continued their push to bring back these loans,” Diane Standaert, senior legislative counsel at the Center for Responsible Lending, a nonprofit in Durham, N.C., that opposes payday loans, tells The Tribune-Review. “There have been a lot of efforts in the states, and they are continually rejected.”

Pennsylvania law (backed up by a state Supreme Court decision) caps interest rates at 24 percent. Critics say payday loans result in interest rates of up to 300 percent, trapping borrowers in an unending cycle of debt.

The bill approved by the House on a 102-80 vote in June 2012 gives lenders a carve-out from the state’s 24 percent annual percentage rate cap and allow payday lenders to charge a 12.5 percent financing fee and a $5 fee on payday loans.

It would also require lenders to get an annually renewable license from the state. The licenses would cost $3,000 for the business’ primary location and $1,000 for every other location.

The Pew Charitable Trusts took an in-depth look at payday lending in an October 2013 report. Here, in a handy graphic, is a summary of those reform efforts.

Research courtesy of Stateline.org

The rest of the day’s news starts now.

The Tribune-Review looks at the high bar to ballot access facing Libertarian Ken Krawchuk as he wages a long-shot bid for governor. Pennsylvania has among the strictest ballot access laws in the country. Throw in gerrymandering from redistricting and third-party candidates are all but foreclosed from holding statewide office.

State lawmakers are worried that small games of chance may be a losing bet for the state, The Post-Gazette reports.

A lawsuit by four community groups against the city of Pittsburgh and former Mayor Luke Ravenstahl, unsealed Wednesday, could reopen old feuds about how federal development funds are spent, The PG also reports.

Allentown’s school superintendentis looking for budget help from city business leaders, The Morning Call reports.

The financial outlook is bleak for three schools in the state System of Higher Education, The Tribune-Review also reports.

Bills in Pa. and NJ would open adoption records, The Inquirer reports.

Democratic gubernatorial candidate Katie McGinty has joined the air wars in earnest with two new ads. Here’s the clips:

Keystone Politics links to that Morning Call story looking at how much money Pa. left on the table by not legalizing a severance fee on gas drillers (hint: It’s more than what was raised by the impact fee).

What Goes On.
Auditor General Eugene DePasquale holds a 1 p.m. presser to discuss the plight of the Harrisburg schools. You’ll find him at Harrisburg City Hall.
Budget hearings continue this week in the House and Senate.
In the House (all meetings in Room 140 of the House):
10 a.m.: Department of Health/Department of Drug & Alcohol Programs
11 a.m.: Pennsylvania Liquor Control Board
2 p.m.: Judiciary
3:30 p.m.: Department of Agriculture
In the Senate (all meetings in Hearing Room 1 of the North Office Building):
9:30 a.m.: Department of Public Welfare
1 p.m.: Department of Community & Economic Development
3 p.m.: PHEAA

What Goes On (Nakedly Political Edition).
Rep. Mike O’Brien, D-Philadelphia, holds a 5 p.m. reception at McGrath’s Pub. Admission runs $250 to $1,000.
Philly Councilwoman Janine Blackwell holds a 5:30 p.m. reception at Ms. Tootsies RBL. Admission runs a flat $1,000.
State Rep. Eddie Day Pashinski, D-Luzerne, holds a 6 p.m. reception at Genetti’s in Wilkes-Barre. Admission runs $100 to $500.

Heavy Rotation.
Here’s a classic from The Smiths. It’s “This Charming Man,” caught live.

Monday’s Gratuitous Soccer Link.
The Guardian looks at why Wayne Rooney will never be beloved by the fans of Manchester United.

And now you’re up to date. See you all back here in a bit.

[…]

Don't ever borrow cash from evil men like this

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The Sunday ECHO today reveals the murky world of illegal loan sharks, who prey on debt ridden families.

Our inquires have revealed how ruthless the shady, often violent, lenders can be once borrowers are unable to make their payments.

Some have even threatened the children of people in their debt, our inquiries reveal.

Experts are warning that February is a peak time for those who borrowed cash over Christmas to find themselves preyed upon by loan sharks.

Fears have been raised vulnerable families at this time of year could be feeling the effects of overspending at Christmas and may either have already resorted to, or be considering going to, loan sharks.

A specialist team launched to crackdown on those lending money illegally has been working with councils across Merseyside. Tony Quigley, head of the England Illegal Money Lending Team, told the Sunday ECHO: “Research shows 20% of victims in past cases stated they borrowed in the run up to Christmas.

“No matter how desperate you are for cash, loan sharks are never the answer. It may seem like a small loan to tide you over but it can quickly spiral, and you could end up repaying the loan for many years to come.

“There is also a real risk that you and your loved ones could be subjected to intimidation or violence.”

Loan sharks are unlicenced lenders who are usually contacted through word of mouth, or in places like pubs and bars.

There is always a huge interest rate, often no paperwork, and they even take things for security, such as passports and driving licences.

When borrowers start to struggle, the crooks often take their bank cards and pin number so they can try to make withdrawals on the account.

The issue is so bad in Wirral the council has this month held a loan shark awareness week.

Cllr Brian Kenny, Wirral’s cabinet member for the environment, told the Sunday ECHO: “There have been instances in Wirral where loan sharks sit outside people’s houses and say to them, ‘We know you have two children at the local school’.

“They intimidate them and make them feel frightened, not just for themselves, but for members of their family.

“Some are involved in other criminal activity such as drug dealing and very often these loan sharks turn out to be really nasty people.

“They can cause absolute misery for the people they lend money to.”

Some of the cases that have gone to court tell their own story about the sinister people involved.

A dangerous loan shark, former Liverpool doorman John Radford, who stashed an “arsenal of weapons” in his leafy detached home in Liverpool, was last November jailed for 30 months for illegal money lending.

He exploited the vulnerable by lending out hundreds of thousands of pounds at high interest rates – locking his victims into a spiral of debt.

When detectives raided his home, they uncovered a pistol loaded with five bullets in a kitchen cupboard and two bags of ammunition in a locked letterbox.

Gun found in loan shark John Radford’s house

They also found a haul of other weapons, including machetes, knuckle dusters and red pepper spray.

A violent loan shark who lived the high life while exploiting desperate families, he was ordered to pay back his ill-gotten gains last June.

Gerald Daord, 53, charged one customer an exorbitant 2,752% interest on a loan – 161 times more than an average credit card – in a four-year period of illegal money lending. The Birkenhead crook was jailed in 2012 for 16 months but returned to the dock last summer as a judge stripped him of illicit profits totalling £110,000.

Earlier this month a 43-year-old man was arrested on suspicion of illegal money lending and grievous bodily harm. It came as the England Illegal Money Lending Team, working in partnership with Warrington and Halton council, executed a warrant at a residential address in Widnes.

The suspect was taken into custody and questioned before being released on bail until Wednesday, June 11.

How to spot a shark, where to get help

EXPERTS have warned Sunday ECHO readers NEVER to borrow from loan sharks, and revealed just how these crooks:

Start out being friendly – they are often heard of via friends.

Offer little or no paperwork.

Increase the debt or add additional amounts.

Refuse to tell the borrower the interest rate, how much they still owe or how long they will be paying.

Take items as security – including passports, driving licences or even bank or post office cards with the PIN to withdraw directly from borrower’s accounts.

Resort to intimidation, threats or violence.

And here are four ways to report a loan shark in confidence:

Call the 24/7 confidential hotline 0300 555 2222.

Text “loan shark + your message” to 60003.

Email reportaloanshark@stoploansharks.gov.uk

Send a private message at www.facebook.com/stoploansharksproject

Anyone having problems with debt is advised to contact a reputable national organisation for help, including Stepchange Debt Charity Helpline on 0800 138 1111, or National Debtline on 0808 808 4000.

Mum’s fight for tragic son

CAROL Highton didn’t even know what a loan shark was until her 22-year-old son took his own life after being pursued by one.

Brian Shields killed himself in 2005 at his home in Halton Brook after a debt of £300 rocketed to £3,400 in only a matter of weeks.

Carol set up the Brian Shields Trust to stop other families ever going through the same thing.

Brian Shields

The charity helps people who fall foul of loan sharks and offers advice about safer ways to borrow.

Last year, Ms Highton received an MBE in recognition of her services to personal finance and community support.

More Liverpool news

Thousands of love rats from across Merseyside are using a controversial website to seek affairs , the Sunday ECHO can reveal

A cosmetics doctor has seen a huge rise in demand for botox in Liverpool. .. among men

Five held and two in hospital after double stabbing in Liverpool

Drug dealers are hooking cannabis users to their ‘products’ by lacing them with highly addictive heroin, diazepam and methadone

A Mersey motorist had a lucky escape after his new BMW X5 burst into flames at 70mph on the M57

Everton FC have made a “bit of progress” and are “putting together the financial jigsaw” to move to a new stadium , according to senior advisor Sir Terry Leahy

Read our review from one of the gigs of the year: Prince at the Manchester Academy

[…]

Sixty victims of loan sharks in witness protection

Sixty victims of loan sharks are in witness protection, according to the country’s leading official tasked with breaking the cycle of fear, intimidation and violence trapping families who have borrowed money from illegal lenders.

Tony Quigley, head of the Illegal Money Lending Team (IMLT) in England, revealed that, across Britain, borrowers were paying at least £700m a year to predatory extortionists. The figure is equivalent to a third of the legal short-term payday loan market, which the Office of Fair Trading last year estimated to be worth £2.2bn.

Quigley, whose national enforcement team has powers of arrest and prosecution, said there was an increasing awareness of the help now available to bullied and traumatised victims. He said the true scale of the misery exerted by criminals who might have otherwise gone undetected for years was emerging now that more victims were coming forward.

Quigley said currently 60 cases had been given witness protection. Only the most extreme cases are considered for this protection.

The £700m figure was a conservative estimate for the illegal loans market, he added. “It really is hideous what some of the loan sharks do to a community. It is just exploitation and profiteering of the worst kind. We believe we have stopped 25 suicides, from what victims have told us.”

Quigley admitted the scale of lending and payment were difficult to quantify. “It is criminality. We know it is constant, “We know the impact it has, not just on those [borrowing], but it is all on the ghost economy, when no tax and no insurance are paid and it’s all cash.”

In many cases, there is no record of the transaction between a loan shark and a debtor. Lenders often punish borrowers, especially those who miss payments, with arbitrary increases on the amount owed.

Loan sharks often appear warm and friendly until repayments stop, and they are often heard about through friends, said Quigley. Some take passports, driving licences, even bank cards with a PIN to draw directly from borrowers’ accounts.

While there was no “specific DNA” to the criminals, they all lent money at extortionate rates.

Quigley said that while it was difficult to tell whether the illegal lending market was growing because of austerity, the readiness of victims to come forward, combined with better co-operation between authorities, were paying dividends.

He based his £700m figure on research from 2010 by the consultancy Policis for the Department for Business, Innovation and Skills. It estimated there were 310,000 borrowers of illegal loans in the UK. An average of £350 a time was borrowed, and £700 paid back over 14 weeks at what lenders call “double bubble”, Quigley said. Most people borrowed a number of times.

“We are not only taking out small-time lenders who have a bad effect, but Mr Bigs as well. Once you remove a loan shark, the debt everyone owes is wiped out. That in itself boosts the local economy,” he said.

Those borrowing from loan sharks generally pay the lender first because they are frightened. “That has an impact on everything else. You see rent arrears increasing, properties becoming empty, people doing moonlight flits, petty crime going up.

“If you are handing over all the money to the loan shark and he is only giving you a little bit of money to live on and you have children to feed and the bills to pay, how do you make ends meet?”

In some cases, sharks “rented out” money, leaving their victims perpetually in debt and never paying off the capital sum. Quigley said that since debts were unenforceable in law, the only way lenders could ensure they were paid was through “fear, intimidation and acts of violence”.

Threats to borrowers’ partners and children often proved the tipping point for people calling the authorities, Quigley said. In one case, a man who had taken out a loan for £250 paid back £90,000 over 17 years before contacting Quigley’s team. The lender was jailed for eight months at Ipswich crown court.

The IMLTs in England, Scotland and Wales have brought more than 300 prosecutions since pilot schemes began in Birmingham and Glasgow in 2004 following decades of poor enforcement. Their work has helped about 23,000 victims of loan sharks and led to more than £42m worth of illegal debts being written off.

Last year, there were 100 arrests and 50 prosecutions, with the accused sometimes also facing charges such as benefit fraud, money-laundering, wounding, assault, blackmail and kidnapping.

Investigations are not confined to cities. They have included predominantly rural counties such as Cumbria, Devon and Cornwall.

In England, nearly all local authorities have now delegated their powers in this area to Birmingham city council, which hosts Quigley’s team.

A 60-strong staff include investigators, lawyers and victim support officers, who are funded through the National Trading Standards Board. All the teams run anonymous phonelines to encourage borrowers to report their persecutors. Quigley’s gets 50-60 a month.

Half the assets seized go to the Treasury and a third of the rest is used to cover court costs. But much of the remainder helps fund local community projects advertising the Stop Loan Sharks campaign and financial incentives for people to save and borrow from legal sources. Taxi and hire-car drivers are among those who have proved vulnerable to illegal lenders because of the costs of starting up.

“We are trying to change the next generation. I am not naive, but if we can stop one person using a loan shark, it will have been worth it because of the misery it brings with it,” said Quigley.

Sometimes the team cannot find sufficient evidence to prosecute; at other times it is not in the public interest, he said. “We may decide not to take a case because we would leave potential witnesses open to retribution, because only one person came forward. It is safety in numbers. We have to consider a whole host of risks and precautions.”

It is sometimes enough just to disrupt an illegal operation, he said. “We have had cases without victims where the evidence is so significant that we felt we could prove beyond all reasonable doubt what [illegal lenders] were doing.”

‘Don’t feed your kids – pay me’

Joseph Kiely made £3.6m from illegal loans to about 1,200 people in east Manchester. He was jailed for a total of five years in 2009 after being given concurrent and consecutive sentences – 21 months for blackmail, two years for acquiring criminal property, 15 months for converting criminal property, 12 months for illegal moneylending and three months for failing to provide information to the Office of Fair Trading.

Between May 2003 and December 2007, his illegal moneylending business had a turnover of almost £3m. He charged interest rates that would amount to between 433% and 2,437% APR. A hearing in 2010 confiscated assets amounting to £1.2m.

Paul Nicholson swindled millions of pounds from people in Cheshire and in 2009 was convicted of a number of charges including rape, blackmail, illegal moneylending and laundering. He was given at least six and a half years in prison. He made an estimated £2.7m in ill-gotten gains and in late 2010 he was ordered to surrender almost £1m of assets including capital from a sprawling mansion in Delamere, Cheshire, and his luxury villa in Spain, as well as £26,000 of cash found in his house, his Porsche, his horses, quad bikes and jewellery.

One victim killed himself after a loan of £300 soared to £3,000 in 12 weeks. Nicholson made one woman perform oral sex on him, threatened to petrol-bomb another’s house and told one distraught debtor: “Your priority is to pay me, not feed your kids.”

John Radford, once a licensed moneylender, was convicted and sentenced to 30 months in prison by Chester crown court for illegally lending last November last year. Two associates were jailed for 10 months.

Police found weapons including machetes, knuckledusters, and pepper spray when they searched Radford’s home in March 2012. More than £17,000 was found in safes. When they were arrested, the trio were due a return put at more than £420,000. Loan records suggested that in one six-week period they had about 130 customers owing them almost £100,000.

One victim paid back £60 a week for a year, meaning they had to pay back three times the initial loan. They then took out more loans to repay the first, eventually owing more than £13,000. Radford had 17 other properties, nine vehicles and more than £775,000 across five bank accounts, despite declaring less than £250,000 as income through employment and renting properties since 2003.

•This article was amended on 27 January 2014 to tidy up the final paragraph.

[…]

Foster carer in court over cash loan business that made 'thousands'

A foster carer ran an unlicensed cash loan ‘business’ handing over thousands of pounds to friends before demanding it back with interest, a court heard.

Sandra Lowe, 50, known as ‘Dawn’ is alleged to have made a ‘nice little profit’ running the cash loan and catalogue ‘businesses’ in south Manchester – but the 50-year-old says she acted out of charity.

The mum-of-two, of Hulme , who works as a foster carer for Manchester City Council , denies eight charges of unlawfully engaging in the activities of a consumer credit business without a licence and one charge of blackmail.

Businesswoman Maria Turner, who the court heard was ‘like a sister’ to Ms Lowe, told court that over a seven-year-period she borrowed ‘no more than £50,000’ from her friend to pay mortgage repayments, a tax demands and finance payments on an Audi.

The prosecution say that she ended up repaying £125,000 – and was told she still had £40,000 left to pay back in 2012, in the weeks before Ms Lowe was arrested.

Miss Turner, who runs sandwich shop ‘Mia’s’, at Burleigh Road, Stretford , told the court she now felt an ‘idiot’ for not keeping track of how much she owed Ms Lowe and losing grip of her finances.

She said her financial problems ‘snowballed’ under the ‘enormous pressure’ of running a sandwich shop, a chip shop, an ironing business and nine by-to-let properties.

She said that when her home was repossessed in 2011 she stayed with Ms Lowe, who talked her out of ‘driving off Barton Bridge’.

But she claims that the day after, the defendant made her sign a document saying she still owed her £52,000, despite the fact she had been paying her hundreds pounds a week for several years.

Sobbing, she told court: “When I saw the £50,000 what I owed it kind of sent me to another place. I thought ‘I’ll never do it – I’ll be paying it until I’m seventy.”

It’s alleged that Lowe ‘demanded money with menaces’ between May and July 2012.

Summarising the alleged demands, Miss Turner said: “She said, you better get the money in else I’ll tell your son, I’ll come to the shop and take it out of the till.”

“I was waking up to it and going to bed with it – I was mithered to death”, she said of demands for repayment. Describing the effect of receiving a text from Ms Lowe which read ‘I dont care where it comes from but that £500 needs to go into my account.’

She said: “It was awful, terrible, disgusting. It makes your body shake… you can’t focus, your mind’s in a spin. You want to rob a bank to pay it.”

The prosecution also allege that Ms Lowe ran an unlicensed catalogue business, supplying pals with goods she had ordered from firms such as Kays and Argos at a profit.

Following her arrest, Ms Lowe insisted that she did work for Kays, although the prosecution says the firm has no record of her.

Opening the case, Ben Mills, prosecuting, told the jury: “She says this was all charity work – me loaning money for nothing, me administering all these loans for nothing, Was it out of the goodness of her heart? That’s what you will have to consider in her case.”

Proceeding

More news from the Manchester Evening News

Find out what’s happening where you live with our In Your Area section

Read the Manchester Evening News on your phone – download the Apple MEN App here and the Android MEN App here – and get the paper as an e-edition every morning by subscribing here

[…]

Festive financial pressures turn Britons towards payday lenders …

Image gI_87648_BE_Normal_strap.jpg

Manchester UK (PRWEB UK) 30 November 2013

In November 2013, BBC News ran an article about a recent report from the government backed Money Advice Service which revealed that nearly 9 million people in the UK are struggling with serious debt problems.

The report showed that areas mainly affected were in the North of England, particularly Hull, Manchester and Liverpool, with over 40% of each cities residence struggling with day-to-day issues of debt.

A particular concern highlighted in the report was that very few people seek help with their debt problems.

Caroline Rookes, chief executive of the Money Advice Service, said: “Millions of people could escape their spiral of debt by [seeking] advice. We know it transforms lives and the sooner people access it, the better – to take steps to improve their life for good.”

Shaz Sulaman from financial solutions specialists Baines & Ernst says, “We agree completely with Caroline Rookes – the sooner people seek help, the sooner they’ll be on a path towards a future free from debt.

“While facing up to the reality of your financial problems can be daunting, it’s important to realise that there is help available and that you don’t have to deal with debt alone. Bankruptcy is no longer the only option available – there are solutions that can help you lower repayments, freeze interest and charges and even write off debt. All it takes is one phone call to find out what help is available to you.”

However, with the pressure of Christmas looming over many households at the moment, the UK’s problem with debt won’t be declining anytime soon.

In fact, a separate report from the Money Advice Service – as featured on Sky news – highlighted the worrying trend of people turning towards payday lenders in the run up to Christmas, with 1.2 million people across the UK considering taking out a payday loan.

“Christmas stretches even the most stable of household budgets – therefore it’s understandable why people in financial difficulty may see a payday loan as an attractive solution over the festive period. Parents are under increased pressure to buy the very best gifts for their children and advertisements place so much emphasis on having a ‘perfect time’ which normally equates to spending huge sums of money on gifts, food, decorations and outfits for the party season.

“Payday loans are not designed for long-term lending – the simple fact is if you cannot afford to repay the loan in full and on time, you could incur additional fees. These costs can lead people to take out more loans to cover previous borrowings and this is how spiralling debt can occur,” adds Shaz Sulaman of Baines & Ernst.

The report from MAS also showed that 32% of those questioned were considering adding the cost of Christmas to their credit cards.

This may have been a manageable solution in the past, the rising cost of living now makes it harder for people to clear debts accumulated over the festive period, with 9% of those questioned for the Money Advice Survey still trying to repay last year’s Christmas debts.

“While people feel under pressure to afford Christmas, we would ask people to look at their finances and make sure they can afford the financial commitment that comes with taking out credit.

“If you are worried about your finances and are already struggling with debt, the best thing to do is avoid adding to your financial worries and get help. It would be much better to start the New Year off on a good financial footing rather than laden down with additional debts,” concludes Shaz Sulaman.

[…]

Phil Bradley's weblog: PayDay loans and libraries

There seems to be something of a coming trend for libraries to block access to PayDay loan company websites. Birmingham Council is laughably claiming ‘moral’ reasons. Manchester is doing the same thing. As is Northamptonshire and various others. These all do seem to be at the behest of the local political masters, rather than (thank God) the Library staff themselves. Sorry – maybe I missed this particular lesson, but when was it deemed acceptable for Councils to decide how people should manage their finances by imposing library censorship. And yes, make no bones about it, it’s censorship, plain and simple.

When was providing LESS information regarded as a better thing that providing more? I don’t particularly like these organisations, but there are lots of things that I don’t like, but that doesn’t mean that I should have the right to stop the rest of you looking at something. Sure, I get that they charge ridiculous amounts of interest, but it’s perfectly clear on (for example) Wonga’s website that if I want to borrow £100 for a week, it’s going to cost me £12.89 in interest and charges. It’s about as clear as it can get. I can then choose to accept that rate or not. Now, how much is it going to cost me if I want to borrow £100 against my credit card for a similar period of time. I have absolutely no idea, and credit card companies are not exactly falling over themselves to tell me either. What about pawn shops? They decide what they’ll offer, and what their charges are, but I don’t actually see their websites being banned from library terminals.

Wouldn’t it make more sense that instead of banning, blocking, filtering and censoring, we actually did the right thing – to provide access to websites and allowed adults to do what – you know – adults can do, which is *make up their own minds*. By all means, and I’d certainly encourage this – provide a page of content on the library website about ways of getting credit, links to lots of different resources, such as credit unions, banks, other financial institutions, websites that help people manage their money and so on. Because I’m sitting and looking at these articles, and these smug self satisfied politicians, who are in some way ‘protecting us’ from ourselves. If someone is going to want to borrow money, they’re going to do that one way or another, and quite frankly I’d rather that they felt safe and secure enough to do some research in a library to find different deals and options than end up down a back alley somewhere borrowing money from some thug. A library needs to be somewhere that anyone can go, safe in the knowledge that they can use it to research and find what they need. Not somewhere that’s making a moral judgement on them, not run by a Council that ‘knows best’ and not somewhere that seems to imply that censorship, rather than education, is the acceptable way to go.

I get that if you’re an employee of one of these Councils there’s not much that you can do, because quite frankly, if they’re prepared to block, ban and limit access to information, they’re not going to take too kindly to their employees thinking for themselves, or God help us – actually criticising the smug, self centred patronising councillors who claim to be working on behalf of the community, but instead are using their positions to impose their own will and bullying attitudes on the rest of us. If you’re in that situation, you have my entire sympathy.

I don’t like PayDay loan companies. I hate that they have to exist, and I hate the fact that they make money from poor, desperate and vulnerable people. But the solution isn’t to limit their access and freedom to information and options, it’s to provide them with help. The more we censor – for whatever reason, and however laudable it may initially seem, the more it becomes a sensible way of working, and the more we all, as a society get used to it. And that’s a worse crime than charging people thirteen quid to borrow a hundred.

[…]

Business Cash Advance Guru.com Launches New Resources for Small Business Loan and Bad Credit Business Loan Options …

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Grow Your Business with Business Cash Advance Guru

Eastern U.S. Expansion Allows Alternative Business Loan Lender, Business Cash Advance Guru, to Offer New Resources for Small Business Loan Options

Nationwide (PRWEB) July 12, 2013

Large banking institutions continue to hold literally billions of dollars of capital in their reserves, which has presented a substantial roadblock to small businesses across the country. For companies which have suffered during the economic downturn, credit blemishes have made it all but impossible to secure funds in order to forge ahead.

However, with Business Cash Advance Guru, rates are competitive, repayment terms are affordable, and there’s no collateral needed to secure these poor credit business capital loans.

This alternative lender has stated it seeks to be a go-to resource in its new expansion efforts to the North, forming a partnership with its client borrowers by offering bad credit business loan options which allow small companies to access anywhere from $5,000 to $500,000 in bad credit business capital.

Applications are processed quickly, and the majority of the bad credit business loans offered by the alternative lender are approved in as little as 24 hours. Funds are usually available within a week, which are deposited directly into the applicant’s banking account.

Business Cash Advance Guru, being a leading source of poor credit business loan options, reminds companies looking for a business bank loan alternative provider that not all lenders are created equal. Some hidden fees alternative lenders spring on applicants and do not offer flexible payment terms. However, this particular business bank loan alternative provider charges no such fees and gives its borrowers many repayment options.

Small companies, which attempt to get cash for expansion, increasing inventory or materials levels, to hire additional staff, to purchase equipment, or for other reasons all too often find that traditional lending institutions are quite reluctant to approve their loan applications. This means small companies have to seek out an affordable and reliable business bank loan alternative provider. That’s not necessarily a bad thing.

Small business owners looking for bad business bank loan options will be pleasantly surprised by the alternative loan process. The traditional loan process includes having to complete lengthy applications; reams of financial must be turned over for review, all over several weeks time. This means the applicant business has to spend an inordinate amount of time making efforts to qualify for a business loan. That does not include the fact that many of the large banks require the applicant put up substantial collateral and sign a personal guarantee.

Business Cash Advance Guru is an alternative lender offering many types of ‘bad credit business bank loan options with particularly low rates and flexible repayment terms. Funds approved and distributed to the applicant have tax benefits; what’s more, a full 97 percent of applications are approved. Business need only to accept credit cards and project future bank deposits in order to qualify. Business Cash Advance Guru offers a number of funding programs, which include start-up loans, grand opening cash advances, as well as an asset and equity based financing options. The alternative lender even has an option for invoice factoring, making it possible to secure cash even if a company has negative retained earnings or operating losses. Additionally, funds can be used for any purpose.

Common bad credit business loan services that Business Cash Advance Guru now offers, through their nationwide expansion include:

Restaurant Funding Business Cash Funds Fast Merchant Loans Unsecured Business Loans Merchant Cash Advance Small Business Loans Business Loans Unsecured Business Loans Business Loan Alternative Bad Credit Small Business Loan Franchise Business Loans Restaurant Loans Poor Credit Business Loans Business Working Capital

More services are available in addition to the above list through the website at: http://www.BusinessCashAdvanceGuru.com

The lending company’s Eastern U.S. expanded services are available in the following geographical areas:

Manchester-Nashua, NH
Burlington, VT, South Burlington, VT
Albany, NY, Schenectady, NY, Troy, NY, Binghamton, NY, Buffalo, NY, Niagara Falls, NY, Elmira, NY, Glens Falls, NY, Ithaca, NY, Kingston, NY, Nassau, NY, Suffolk, NY, New York, NY, Poughkeepsie, NY, Newburgh, NY, Middletown, NY,
Atlantic City, NJ, Bergen, NJ, Passaic, NJ, Camden, NJ, Edison, NJ, Jersey City, NJ, Middlesex, NJ, Somerset-Hunterdon, NJ, Monmouth, NJ, Ocean, NJ, Newark, NJ, Ocean City, NJ, Trenton, NJ, Ewing, NJ, Vineland, NJ, Millville, NJ, Bridgeton, NJ,
Allentown, PA, Bethlehem, PA, Easton, PA, Altoona, PA, Erie, PA, Harrisburg, PA, Lebanon, PA, Carlisle, PA, Johnstown, PA, Lancaster, PA, Philadelphia, PA, Pittsburgh, PA, Reading, PA, Scranton, PA, Wilkes, PA, Barres, PA, Hazleton, PA, State College, PA, Williamsport, PA, York, PA, Hanover, PA,
Bridgeport, CT, Hartford, CT, New Haven, CT, Meriden, CT, Norwich, CT, New London, CT, Stamford, CT, Norwalk, CT,
Providence, RI, Fall River, RI, Warwick, RI,
Bangor, ME, Lewiston, ME, Auburn, ME, Portland, ME, South Portland, ME,
Barnstable Town, MA, Boston, MA, Cambridge, MA, Newton, MA, Framingham, MA, Pittsfield, MA, Springfield, MA, Worcester, MA,

About TieTechnology

http://www.businesscashadvanceguru.com, a division authorized by TieTechnology, LLC. TieTechnology, LLC., specializes in service based solutions for businesses. Services provided by TieTechnology are merchant credit card processing, business service telecommunications, business cash advances on credit card processing platforms and web based visibility marketing. The advantages of doing business with TieTechnology is their commitment to their customer service excellence and the offering of one stop solutions to all business to business service product needs for the customers’ convenience. To learn more about their wide assortment of business services, please visit http://www.tietechnology.com or http://www.businesscashadvanceguru.com.

TieTechnology, LLC
813-856-0223 x150
888-809-9243 x150


[…]

Kerry Katona loan advert is banned

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Kerry Katona payday loan loan advert is banned by ASA

Page last updated at 14:35 GMT, Wednesday, 8 May 2013 15:35 UK

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An advert for a payday loan featuring Kerry Katona has been banned.

Some people complained to the Advertising Standards Authority (ASA), who said it suggested the money could help to fund a celebrity lifestyle.

Others complained it was irresponsible because it focused on her financial problems and encouraged people in similar situations to borrow cash.


The ad should not appear in its current form. We told Cash Lady to take care with the overall presentation of information of its loans

Advertising Standards Authority

The ASA said the advert promoted itself as an alternative to banks while offering an APR in excess of 2,000%.

The ad for PDB UK, trading as Cash Lady, featured Kerry Katona saying: “We’ve all had money troubles at some point, I know I have. You could see your bank and fill in loads of forms, but is there an easier way to get a loan.”

Cash Lady said Katona was chosen as its “face” because she had experienced money troubles in the past and their customers would be able to relate to her.

‘Particularly attractive’

It said its loans were limited to £300 and were therefore aimed at those experiencing relatively low-level short-term financial difficulties with a need to bridge a gap between paydays.

However, the ASA said references to Katona’s financial problems within the ad “had the potential to encourage vulnerable viewers with financial problems and/or restricted credit from seeking to resolve them through the payday loan service”.

It said some viewers with restricted credit may have found the product in the ad particularly attractive because of their identification with Katona and the references to her own past financial problems.

“The ad should not appear in its current form,” a statement said. “We told Cash Lady to take care with the overall presentation of information of its loans.”

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MP criticises Katona loan advert

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