Quote JerryChicken="JerryChicken"Its really difficult to calculate the repayments though, as illustrated ... [urlhttp://www.huffingtonpost.co.uk/2013/01/16/wonga-henry-raine-maths-public-accounts-commitee_n_2488079.html?utm_hp_ref=uk-politics[/url
Reading through that report though he does make some valid points and the MP's quizzing him make some rather naive ones (or try to), I hope their interview with him has enlightened them a little.'"
A couple of months ago, I did an interview with a debt counsellor. Pay-day loan companies turn her from a very well-spoken rather posh, middle-aged lady to someone nearly biting their tongue to stop themselves saying naughty words.
She was telling me how debt problems are increasing for a variety of reasons – parents supporting children who are unable to find work and move out, people finding that their hours have been cut and so on.
She's been seeing an increasing number of people who, in a panic that they can't pay the mortgage one month, take out a pay day loan to pay it, and then find they need a bigger one the following month to pay back the original loan.
Another thing that's happening is that companies are also threatening legal action and even bankruptcy over very much smaller amounts than in the past, and for debts that were not incurred a long time ago.
For which I actually have a personal example.
A few months ago, I had paid off everything that was outstanding on a credit card I had. Thought that was the end of it. However, it turned out that I had some payment protection (didn't remember that) and they continued to bill for that. Less than a month later, got a letter threatening legal action for something like £25.
Eventually got letters from them acknowledging that both the card and the protection scheme accounts were closed and that no more charges would be made. Final payment was thus made instantly.
