Governments to Impose Tougher Sanctions on Payday Lenders?

New regulations under fire New government measures intended to protect those unable to repay unmanageable debts to payday loan companies have come under fire from MPs, who say that the new rules are of "limited value". 

The new regulations have already been agreed by trade associations representing the vast majority of payday lenders, but as MP Stella Creasy points out, the new rules are voluntary, not statutory. 

"Anyone who has seen the way these companies are targeting UK consumers will know that asking them to police themselves is like Red Riding Hood asking the wolf to babysit Grandma" Ms Creasy said, adding; "we know self regulation is of limited value in an industry with so many different companies and growing so rapidly." 

The agreement states that loan providers will freeze charges for those who are struggling to repay them once a viable alternative has been found, and the payday lenders will also freeze interest on debt once 60 days have passed since the borrower has stopped making payments. 

What does this mean for people wanting to take out payday loans?

 Should someone need to take out a short term loan of this kind, they will still be able to, which has drawn criticism. Regulations in other countries; such as those proposed in San Jose, California in the USA; aim to protect the vulnerable by limiting the lenders' reach into the poorest neighborhoods, as USA Today reports. 

When used responsibly, payday loans can be a viable source of emergency income, which can provide people with necessities they would be otherwise unable to access on a week by week basis. The news that measures are being taken to protect people who should steer clear of payday loans should be welcomed, as this does not eliminate a valuable service that many people need access to daily. 

Limited value 

Payday loans providers such as Wonga.com are among the only companies willing to lend at the moment; something which the government wants to encourage; so it makes sense that the regulations are not designed to impede those organizations like many proposed in other countries, but rather to protect borrowers, which is only fair. 

Borrowing of this kind is on the rise, and the government has been forced to concede that giving people access to emergency funds in this way is necessary. The criticism from MPs won't impact the agreement, since it is on a purely voluntary basis, and many have welcomed the move as a step in the right direction. 

Stephen writes about payday loans whenever they are in the news for alternative provider Wonga.com.

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5 Reasons You Could Lose Your Job

In today’s competitive workplace, you have never had to work harder to secure your job. There are a number of reasons why you could lose your job, including permanent disability, poor performance, company closure and unauthorized use of the internet. If you were to lose your job, for whatever reason, would you be able to support yourself and your family financially? Income protection insurance can guarantee that you and your family are taken care of, should you become sick or injured. Income protection will cover up to 75 percent of you salary and has a very broad spectrum as to what is covered, making it easier to claim if there is something that is preventing you from working. There are many simple reasons as to why you could lose your job and it is important to know, so that you can adequately prepare, in case of the unfortunate event in which you can no longer work.

Company Closure

With the current economic situation for many countries being quite dismal, more and more organizations have had to close their doors due to recession or lack of profits being made. When a company is struggling financially and has ultimately hit rock bottom, one of the first options that is visited for cutting costs, is reducing the amount of employees which will in turn reduce the amount of salaries that need to be paid. 

Permanent Disability

Acquiring a permanent disability may force you to lose your job because you are physically or mentally unable to work again. There are a number of medical reasons why someone may be left permanently disabled, such as mental illness, brain injury or a severe medical condition such as a heart attack or stroke. Many of the reasons why you can become permanently disabled are unavoidable and unpredictable; meaning insurance such as income protection insurance could save you the added stress and anxiety in an already difficult time.

Providing Misleading Information

Lying or providing misleading information to your company can often be grounds for instant dismissal. You should never lie on your resume when applying for a job, or lie to your company once you have been employed. Falsifying records and paperwork is illegal and is a valid reason for losing your job.

Unauthorized Use of Computers

In today’s ever growing world of technology, most companies are now computer based. When using your computer for 8 to 10 hours each day at work, it can be tempting to use the internet for purposes other than work. Inappropriate use of computers and the internet, such as using the internet for personal reasons, social networking or browsing employment advertisements whilst at work, can all potentially lead to termination of employment.

Poor Performance

Although we often try our best to be successful in our workplace, other outside issues may cause us to have poor performance. Missing deadlines, turning up to work late or producing poor quality work are all reasons why you could potentially lose your job. When you are not performing well for your company, you stop being an asset and start becoming a liability, often leading to termination of your working contract.

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Choosing a Reliable Debt Consolidation Company

With so many financial institutions claiming to have all the solutions to our financial problems, it is often hard to know where to turn for reliable, professional help. When you are already struggling with debt, you do not want to be concerned with giving your finances to a fraudulent debt consolidation company that could possibly put more strain on your already tight budget. Unfortunately, there are companies who are not professional and could cause you more financial heartache, so it is vitally important to do your research and find out which debt consolidation companies are reliable. So how do you even begin researching if a debt consolidation company is reliable? Where do you start? Here are some tips for helping to find a reliable debt consolidation company.

Trust your Instincts: Avoid Red Flags

When researching a company, you will often visit their website to discover the history of the corporation and to find out all of the services that they offer to consumers. If a website does not provide detailed information about the company and include specifics, such as contact details and their Australian Business Number, be wary and always proceed with caution. Many fraudulent companies also require large upfront payments or deposits, which later turn out to be you simply giving your money away to a company and receiving nothing in return. Also take caution with companies who cannot be reached during regular business hours. As a customer of a legitimate business, you should be able to reach a debt solutions consultant during normal business hours. If in doubt, always research thoroughly before choosing a company to handle your debt consolidation. 

Do They Comply with Fair Trading & Consumer Protection Laws?

The ACCC monitors company’s within Australia to ensure that they are complying with the Commonwealth's competition, fair trading and consumer protection laws. It is the main responsibility of the ACCC to make certain that both businesses and consumers are abiding by these laws. If you are in doubt that your prospective debt consolidation company is adhering to these laws, or feel as though you have been treated unfairly in any way, you can lodge a complaint with the ACCC to attempt to have the matter resolved. All companies providing a service should abide by the laws of the Commonwealth of Australia, with your debt consolidation company being no exception. Finding a reliable debt consolidation company that you feel comfortable enough to hand over your money can be a time consuming process. Always trust your instincts when choosing a debt consolidation company – if they look untrustworthy, then they probably are. Debt consolidation can be a great solution to a tough financial situation; however, it is important that you find a reputable company, who is reliable and professional, before signing any documentation. Reliable debt consolidation companies are out there, you just need to be cautious and mindful and you will find the right company for you. 

Tara Blair writes for a number of leading websites and online news sources covering finance, personal wealth management and other topics that are close to her heart. Tara always recommends Fox Symes debt consolidation as a reliable debt consolidation company.

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