Immediate Payday Lenders and payday loans! This subject has been chased all the way around the Wild West and back and we still question: who’s the Bad guy here?
The old western movie, we watch from the couch avidly, chomping our popcorn, watching the Bad guy kill everyone in his path, anticipating the arrival of the dreaded Good guy who was to haul our Bad hero off to jail. Ride Billy, ride. We were hoping the Bad guy would win!
Let’s start with a young single Mother in Wiltshire. Karen lives on benefits and has two children to support. Come Christmas Karen wanted more than anything to show her children a great time. She wanted to buy them a new TV, a new bicycle, a DVD player, and some computer games among other things. Included in the celebration were a traditional meal and a tree of course. They had a wonderful family Christmas, and no one should begrudge them that. Karen borrowed around 2000 pounds to pay for this celebration.
She began before Christmas trying to raise the cash. She ended up taking out loans from several Immediate Payday Lenders – in total eight – knowing full well that her benefits would never cover the amount she would need to pay back timeously before the loans would get out of hand. She took absolute advantage of the fact the lenders do not always perform credit checks or take much interest into her personal affairs. Easy money. Quick money. Get it now and think about what to do about it later. Now she is banging down the doors of the Office of Fair Trade, complaining that these lenders have taken advantage of her vulnerable situation and should be help responsible.
Is she the Good guy or the Bad guy?
Next we examine the Payday lenders themselves, because if Karen is the Bad guy and we are still in the Wild West we should be on her side and wanting her to get away with it. The Payday guys come along with a service and rocks basically. Hey, here is a gun slinging guy who has a great offer. He’s not going to check up on you, he’s not going to ask anyone if you have debt with them, in fact he’s just going to hand you a handful of cash and tell you to pay it back quickly within the next month or you are going to have a problem with him and his guys. He tells you the longer you leave it the longer him and his guys are going to stick around and wait. You ask him why, and he tells you, “Doll, I’m takin’ all the risk here. What if you never pay me back? What if you disappear on your horse to some other town? How am I gonna find my money? I have to cover my interests here.”
Is he the Good guy or the Bad guy?
There are always two sides to a coin, but is seems that it is so much easier to waltz into a Payday lender and get yourself a fistful or cash to buy fancy Christmas presents than to actually save for them or get a second job, or even apply for a proper loan that you know you will be able to pay off.