James O'Brien 10am - 1pm
Payday loans: Caller tells James O'Brien about his shocking fall into debt
30 January 2020, 17:46
This caller opened up to James O'Brien in a shocking story of severe debt after he borrowed some extra money for Christmas from a payday lender.
James O'Brien called payday lenders "abominable" after administrators announced that people who were mis-sold payday loans by lender Wonga will get 4.3% of the compensation they are owed.
Joe, who is a self-employed physical labourer, broke his hand before Christmas so in desperation sought a loan for £1000 to support his family. He said his mistake wasn't reading the small print; he received an email saying he owed £4500 back to the lender.
"We had no money before Christmas, and now we've still got no money, how do I get round this one?" said Joe, telling James that the company are withdrawing £52 weekly from his account.
"Every time you don't pay, they do arrears and the arrears go up and up and up and up."
Joe confessed he didn't know how much he owes back to the company and doesn't know "what to do or where to go."
James, disgusted, said, "I thought this had stopped...here you are, first caller in telling me it's pretty much business as usual."
James urged the caller to seek a professional debt helpline and find out what his rights are.
"You played by the rules, you did what you thought was right, and you've ended up almost not knowing how much debt you've got," he said.