Quote:
Originally Posted by Accyexplorer
I find most (if not all) "loan sharks" and "loan companies" disgusting, how can it be legal to charge folk 1500%+ interest?
While the folk that use them may of fallen on hard times and found themselves in a 'desperate situation', If their stupid enough to give consent to take on a loan with over 1500% interest and/or forfeit their motor, they deserve to lose their car etc.
That being said though,
It doesn't excuse these companies for exploiting folks naivety/stupidity.
Modern Society doesn't deserve to suffer the problems caused by the (careless) actions of the desperate folk these kind of 'schemes' create in the name of profit.....
... In my IMHO they may as well go the whole hog and get Italian mobster's with steroid freaks to dish out these 'loans'.  |
It's ok quoting figures of 1500% and saying it's wrong but you have to look into deeper than that. That figure is quoted as a per annum figure but the loans are often only for a week or two.
I just went to the Wonga site and picked a loan of £100 for 7 days. It says I have to pay back £112.89. If I want the £100 to pay off a bill and I get paid in 7 days it could be a good deal. What does your bank charge for a missed direct debit or the company you owe it to? If it is more than £12.89 then you have saved money.
The interest on that loan is 365%pa with a fee of £5.50. Yes the apr is high but so is the risk to the company but that loan could save you money.
I am not saying these companies are good or bad just that sometimes they can help you out of a hole or if you abuse them can get you in a hole.
The big problem with credit is that there is no national register showing how much credit individuals owe and to which company. Having one would be a massive breech of privacy I suppose but it would also let loan companies instantly see if you had loans already and if they should accept you or not.