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'Wonga offered me a payday loan of more than my monthly salary': Borrower had to fight to escape from a spiral of debt

/li> 19 shares 30 comments Steve Doran took out a payday loan in March 2011 and cleared her debts only  at the beginning of this year. She first borrowed about £170 but after paying it back took out another, bigger loan, and then eventually borrowed more than three times the original sum. Steve, 26, from Dartford, Kent, feels that young people need to be alerted to the dangers of payday loans.  ‘My outgoings matched my incomings but there was  little room for an emergency,’ she says. VICIOUS CIRCLE: When Steve Doran repaid her loan she had nothing to live on so she had to borrow again ‘When I repaid the first loan  I no longer had enough money to get through the month, so I took out another loan and so  the cycle went on.’ Steve, who works as an activities co-ordinator at  a residential care home, borrowed from payday  giant Wonga, which operates  a ‘trust rating’. This means that borrowers  who repay on time are often rewarded with the chance to borrow more n

Millions scupper chances of getting the best mortgages and credit cards by deliberately skipping loan repayments

/li> 7 comments Millions of cash-strapped Britons are damaging their credit records by skipping loan repayments because they can't afford them, a study has claimed. One in five British adults have admitted to occasions in the past six years when they have found themselves unable to afford a debt repayment, while more than a quarter say they have missed payments because they 'forgot'. The Experian CreditExpert research not only shows how many have bitten off more than they can chew, but also how difficult people are making it for themselves to get mortgages, loans and credit cards in the future as each missed payment becomes a black mark on their credit record. Falling behind: Nearly half of UK adults admit to having missed a debt payment in the last six years. Peter Turner, of Experian Consumer Services, said: 'It is no surprise so many of us admit to having lived beyond our means at some point, but what many might not yet realise is the possible imp

Applying for a credit card? You'll pay 9% more than advertised for a patchy credit score

/li> 0 comments Banks are routinely charging credit card customers up to 9 per cent more than the advertised interest rate. When you apply for a credit card, only the very best customers get the top deals. While some banks will refuse your application outright if your credit rating is less than squeaky clean, others will offer you a card with a higher rate than the one you originally applied for. In fact, banks only have to offer their headline rate to 51 per cent of customers they accept. This means the remaining 49 per cent of customers may get a worse deal, paying up to 9 per cent more than they were expecting, according to research by financial website Moneycomms. Different rates: On a £2,000 balance, an extra 9¿per cent in interest would cost customers £180 a year more American Express, Halifax, Lloyds, Nationwide, Royal Bank Of Scotland and Tesco Bank are among those who deal out credit cards in this way. They each publish the minimum and maximum rates they of

Longest balance transfer Barclaycard 26 months after Tesco move

/li> 15 shares 5 comments Those struggling with credit card debts can now buy themselves 26 months of time to pay back what they owe without accruing any extra interest. Barclaycard has once again outstripped the competition by increasing the 0 per cent interest period on its Platinum balance transfer card by an extra month. It wrested back the mantle of 'market-leading 0 per cent balance transfer card' from Tesco Bank, which held it for a matter of hours yesterday when it revealed a 25-month 0 per cent period with a lower fee than Barclaycard's on its Tesco Clubcard Credit Card. Balance transfer: Barclaycard is offering its longest-ever interest-free balance transfer period at 26 months. Barclaycard's 26-month card comes with a 3.5 per cent fee, meaning you would pay £35 to transfer over £1,000 from other credit cards. Any amount you transfer must not exceed 90 per cent of the credit limit on the card. Tesco Bank's comes with a 2.9 per

More women turn to credit cards and loans to make up for their lack of income

/li> 14 shares 12 comments More women are turning to credit cards and even payday loans to get from one month to the next as they cope with shortfalls in their income, a study has claimed. A survey of more than 2,000 people by credit report company Callcredit found that 72 per cent of women have applied for some form of credit in the last 18 months, compared to just 28 per cent of men. Worryingly, the main reason women cited for applying for credit was to make up for shortfalls in their income. Debt spiral: More women are turning to credit cards and loans to make up for their lack of income. But while women are more likely to have taken out one form of credit in the last 18 months, more men than women took out multiple forms of credit, at 50 per cent of those surveyed compared to 41 per cent of women. Graham Lund, Callcredit managing director, said: 'It's clear...that the financial pressures of day-to-day living are continuing to increase which

Wonga raids 15-year-old's bank account to recover debts, BBC Watchdog

/li> 159 shares 68 comments Payday lender company Wonga raided a 15-year-old schoolboy’s bank account after it allowed criminals to take out a loan using his details in one of the most serious cases of fraud among hundreds to have plagued the lender. Legally borrowers must be 18 years old in order to obtain a loan but Wonga failed to check the details of Simon Oliver, now 16, from East Sussex, when they were used by a fraudsters. The case, highlighted in a report by BBC Watchdog last night, echoes those reported by This is Money in the past year and brings into question once again the checks Wonga performs before it grants loans. Wonga fraud victim: Simon Oliver was 15 when Wonga raided his bank account for a loan that he did not take out. He is one of nearly 400 victims reported to BBC Watchdog. A report on the issue is being broadcast at 8pm on BBC One tonight. The first Simon knew of a problem was when he tried to withdraw money during a school trip to Sw

Payday lenders accused of irresponsible lending by failing to check borrowers can afford loans

/li> 10 shares 5 comments Payday lenders are pushing people in to debt by failing to check that borrowers can afford to repay loans, the Citizens Advice Bureau said today. In a survey of 1,270 payday loan borrowers, with loans from 87 payday lenders, 65 per cent of people did not get asked about their financial situation when taking it out, according to research by the CAB.   The CAB said that during the four months that it collected the data that over 11,000 sought help online from Citizens Advice about payday loans. Debt: The Citizens Advice Bureau has accused payday lenders of lending irresponsibly by failing to carry out adequate affordability checks on borrowers. Some of the issues it has identified included trapping customers into a spiral of ‘never ending debt’. One borrower repaid £57 a month on a £500 loan over a six month period – but the debt still stood at £437. Another customer was pestered at work and one even received phone messages on Christmas

Half of adults don't know their credit card interest rates

/li> 5 shares 11 comments Almost half of people who own a credit card are running the risk of being shocked at their bills as they do not know what interest rate they are on, a new study has claimed. The Moneywise Consumer Opinion Survey of 20,000 people found that 46.5 per cent of credit card holders had no idea of the rate on their card. Given that interest rates vary from the advertised rate, with the best rates generally given to those with the best credit records, being unaware of the rate can mean unknown added costs for those who do not pay off their bills on time. Unaware: Half of us don't know what interest rates there are on our credit cards. Credit cards typically carry interest rates of around 18.9 per cent Representative APR, and providers have to give the best advertised rate to 51 per cent of successful applicants under EU law.   More... Why were we charged £16.69 interest on our credit card bill when our balance was just £100? The gender

Two payday loan firms surrender credit licenses and three more could be shut down as OFT ramps up action against lenders

/li> 12 shares 14 comments Two payday lenders have surrendered their trading licences after a crackdown by the Office of Fair Trading (OFT). The OFT said that it is also currently investigating three more payday loans firms for bad business practices and they too could be shut down. The OFT could not name them for legal reasons. The Payday Loan Company Limited – which operates under a number of names including Cashnet and Paydayloans.co.uk - and Anfield Cheque Cashing Centre have both given up their consumer credit licences and will no longer be able to trade. Update: The OFT said that two payday firms had now surrendered their licences and three were still being investigated as part of its action on the sector. It comes after the consumer body last month sent letters to 50 leading payday lenders asking them to take immediate action to overhaul their businesses. The OFT accused firms of failing to conduct adequate assessments to see if applicants can afford

JEFF PRESTRIDGE: End this plague of payday loan adverts

/li> 12 comments Why is it easier to promote debt rather than savings? Am I the only person to notice that while there are adverts everywhere exhorting us to borrow – often at punitive rates of interest – there are far fewer encouraging us to save? One answer has to be that current regulations perversely make it easier to promote debt than to encourage long-term saving through, for example, a tax-friendly Isa or a flexible self-invested personal pension. If you are a payday lender offering short-term loans at rates of several thousand per cent APR, as long as you make that clear you can more or less advertise where and how you please – you can even ridicule the elderly as Wonga does with its sad puppet characters Betty, Earl and Joyce. Student campuses, Tube trains, bars –  you name it, you can be sure a payday lender will be pushing  its expensive wares.   More... How to get out of debt: Your ten-step plan to getting your finances back under control The best balance t

I gave my relatives money to improve their career prospects, and now I'm being crushed by debt repayments

/li> 7 shares 23 comments One good turn: I used credit cards to help two family members pay for university courses, now I'm struggling to pay it back. I am an aged widower in good health with credit card debt as a result of helping two members of my family. They had a laudable ambition in their 40s to work for useful mature student degrees while cutting down to part-time jobs. They were very successful and now have far better jobs. I can service the monthly payments to the credit card companies in excess of the minimum but am finding the rates of interest a disgrace. How can I come to some sort of deal to pay off this debt? G. P., Suffolk. Tony Hazell, of Money Mail, says: My first thought is that you should ask the two family members to help you to repay the debt. They, after all, have benefited from your generosity, so it seems wrong that you should be struggling now as a result. My second thought is that credit cards are possibly the worst way to hand

Expansion credit union industry target payday lenders

/li> 29 shares 9 comments More than 30 credit unions are taking the fight to payday lenders by signing up to a landmark expansion project that is hoped to save Britain's low earners £1billion in loan interest repayments. It is hoped that the Association of British Credit Unions-led project will attract a million new members over the next five years, with the help of a £35.6million investment previously pledged by the Government to transform the sector. More are expected to join the first wave of 31 credit unions that have signed up, with customers expected to benefit from the 'economies of scale' that will allow the unions to offer lower interest rates on loans, better rates on savings, and an improved online and smartphone presence. Fighting payday lenders: Manchester-based Voyager Alliance Credit Union services Britain's passenger transport industry, and is one of the 31 organisations involved in the expansion. Credit unions are community-bas

FA Cup final tickets rocket to £115 each

/li> 0 comments   Ticket prices for next month's FA Cup final have smashed through the £100 barrier for the first time, sparking outrage among supporters. Final insult: Tickets prices for the FA Cup final, which could feature Wayne Rooney if Man Utd beat Man City this weekend, have soared Prices for the most expensive tickets to English football's end-of-season showpiece will cost £115, an increase of 22% on last season, despite the financial crisis gripping the nation. Fans of semi-finalists Manchester United, Manchester City, Bolton and Stoke will travel to Wembley this weekend, and the followers of two of those sides will be expected to make the journey again next month, hitting them hard in the pocket. Kevin Parker, secretary of the Manchester City Supporters' Club, said: 'If you can afford £115 for what will be our first FA Cup final since 1981, you will pay it but the reality is some people just can't afford it. Paying that amount of mone

Tout fines for those selling unwanted Olympic tickets

/li> 0 comments   Sports fans hoping to sell unwanted Olympic tickets could be fined £20,000 for ticket touting. Costly: If you end up with more Olympics tickets than you want- you must wait to sell them on The clampdown will come as a blow to those who might end up with more Olympic tickets than they need because of the lottery process for buying. Anyone who wants to sell or exchange a ticket must do so through the official website - but this will not be set up until next year. It means anyone with extra tickets will have to wait at least eight months before trying to recover their money. Applications for Olympic tickets closed last night. Payment will be taken from bank accounts some time between May 10 and June 10, although applicants will not be told which tickets they have secured until June 24. Organisers are determined to ensure that no one profits from the Olympics by selling on their tickets. The Government recently increased the fine for ticket t

Is it time to limit reselling tickets?

/li> 0 comments   Reselling websites are a forum for those selling on tickets to events they had no intention of going to at high prices, but why is this a problem and can they defend themselves? Tara Evans investigates Fair deal: Tickets to Adele in London are selling for three times the price on reselling website GetMeIn. The problem with ticket reselling Last month we reported on the proposal to put a cap on the rate of profit that secondary ticketing websites. Secondary ticket websites claim to be a forum for fans to resell tickets to gigs that they can no longer attend. But, as This is Money has found in the past, it's not that simple. Fans are often denied seeing their favourite band or artist because people buy up tickets to popular events and then use a reselling website to legally and legitimately sell them on at a profit. Websites, such as Seatwave, Viagogo and GetMeIn (owned by primary selling website Ticketmaster), argue that they provide a s

How to avoid online event ticket rip-offs

/li> 0 comments   More than half a million people will be fleeced by fraudsters selling fake tickets to high-profile events this summer: here's how to avoid being one of them. • Always pay by credit card. The Consumer Credit Act allows you to claim back your money from the issuer, as long as the transaction is at least £100. Debit card users are covered by the charge-back rules. • Be wary if sold-out tickets are on sale. • Use online consumer forums to research the ticket company and check if it is registered at Companies House at www.companieshouse.gov.uk. • If you are buying tickets for music festivals such as Reading or Glastonbury, go to the official festival website to find out where tickets are being sold. • Tickets for the 2012 Olympics can be bought only from the official site at www.tickets.london2012.com. It is illegal to sell on your Olympic ticket once tickets are released, except on the official resale site which is being set up early ne

Viagogo staff accused of trading tickets with company credit cards

/li> 0 comments   Ticket resale website Viagogo has used company credit cards to buy tickets to popular events which it then sold at inflated prices, a former worker has alleged. Not the ticket: An ex-employee has said Viagogo has not acted in the best interests of customers The member of staff, who wishes to remain anonymous and worked at Viagogo last year, contacted This is Money with complaints about how the website operated to the detriment of ordinary ticket-buying fans. He said staff snapped up popular tickets from primary sellers, using company credit cards, to sell on at inflated prices and worked with external brokers who regularly sell large numbers of tickets at more than face value. Viagogo's stated aim is that: 'Our mission is to bring efficiency and transparency to what has traditionally been a murky market place, thus allowing consumers to buy and sell tickets in a safe and guaranteed way.' Viagogo charges both ticket sellers and buyers

£2,700 a second: The price of an Olympics 100m final seat

/li> 0 comments   Good news for sports fans who failed to get any Olympics tickets: Another batch is available. Top draw: King of sprint, Usain Bolt The bad news? You might need to remortgage your house to afford one. The cheapest price now quoted by London 2012 for a guaranteed seat at the men's 100m final is £27,000 per person for a corporate hospitality package - equivalent to £2,700 per second of the iconic race. It also emerged that more than half of sports fans who applied for Olympics tickets have been unsuccessful. About 1.8m people made 20m bids for the 6.6m tickets available. Some 55% of applicants - around a million - missed out completely in the public ballot. Those who were unlucky will get priority in the next release of tickets. As if the £27,000 price tag for the men's 100m final was not painful enough, you have to place an order for a minimum of ten people, which adds up to £270,000 - though you will get some top-quality wine thrown

Channel 4's Dispatches beats injunction attempt by Viagogo to air 'great ticket selling scandal' on TV tonight

/li> 3 comments Channel 4’s Dispatches programme has defeated an attempt by ticket reselling website Viagogo to get a High Court injunction against broadcasting its investigation into how ticket reselling websites work. The show exposes how customers are paying the price for hidden practices used by the 'fan-to-fan ticket exchange'. The current affairs programme went undercover and found that major promoters allocate hundreds or even thousands of tickets to be sold at well above the face value. Enlarge   Scandal: Coldplay was one of the acts that Dispatches found major promoters allocating hundreds or even thousands of tickets to be sold through Viagogo at well above the face value. Tickets for recent gigs and tours by Coldplay, Rihanna, Westlife, Take That, and the V Festival have been allocated by the promoters in this way. The probe also found large scale organised ticket re-selling. In May last year This is Money exclusively revealed allegations fro

Ticketmaster to launch face value reselling website after artists and management demand tickets are not resold at higher values

/li> 3 comments Ticketmaster is developing a face value ticket exchange where customers will be able to resell tickets after it buckled to pressure from fans, event organisers and artists to stop tickets from being resold at much higher values. The ticket selling website launched a ‘paperless’ ticket service earlier this year for some events, such as Radiohead and Michael McIntyre, where organisers requested a system to prevent ticket reselling was put in place. When a customer buys a 'paperless ticket' it means that they cannot resell it, but in order to collect it they need photo ID and the card used to purchase it.  Cleaning up: Ticketmaster has introduced a 'paperless' ticket system to stop the reselling of tickets at a higher than face value price. Michael McIntyre is one of the events for which 'paperless' tickets were sold for. It is now developing a face value ticket exchange for paperless tickets after some customers complained a

Are Ticketmaster's paperless tickets really a bad idea?

/li> 1 comments A new paperless ticket system from Ticketmaster which prevents customers from reselling them is punishing fans when they can't make the event. Today in the Guardian Lisa Bachelor wrote an article about Radiohead fans who are annoyed by the new system from Ticketmaster which means people cannot access the event without the card or card holder present and are unable to sell them on. It’s very annoying for those genuine fans who can no longer make the event and want to sell the tickets on at face value. But in the long term could this help fan get lower ticket prices? OK computer: Thom Yorke from Radiohead who have put paperless tickets in place for it's UK gigs. Ticketmaster told me last month, when I covered the same issue, that it was developing a face value ticket exchange where customers will be able to resell tickets. The website has introduced the system after pressure from fans, event organisers and artists to stop tickets from being

Should re-selling website sell primary tickets that fans have never had the chance to buy?

/li> 0 comments Ever wondered why you couldn’t get a ticket to that gig you want to go to? Well that’s because the chances of you getting one are a lot harder than you think. A couple of weeks ago CEO of Seatwave, Joe Cohen, told me over a rather large bowl of coffee that, sometimes, nearly 70 per cent of tickets are allocated before they go on general sale. This figure is made up of pre-sale tickets (offered to newsletter subscribers or fan club members), corporate tickets and those allocated to promoters and sponsors. This means that if you want to buy a ticket to a popular event, like the Rolling Stones or Take That, then the chance of getting one at face value are often slim. I can't get no satisfaction: Fans often left sad and angry when they can't get tickets to a popular event. But if they knew how many tickets were on sale they might have realistic expectations. This is where re-selling websites come in. Websites like Viagogo, Seatwave and GetMeIn re