Rip Off Britain again

big al · 10-06-2010, 23:00

Advert for short term loans on TV is posting an APR of 260.1%. I understood loan sharks were being forced out of business but heres one blatently preying on the vulnerable openly & on our tv screens. Many years ago I worked for a while for Provident & was embarrased at their charging 96% for a 2 year £1000 loan but this makes them look like Santa Claus in comparison. How on earth can this have slipped the ASA as such a rate is scandalous. I know the market targeted is high risk but there has to be a limit. Come on Graham, as new MP for the area in a traditionally renown low economy part of Britain show your teeth & show these rip off merchants we dont need them!

accyman · 10-06-2010, 23:16

theres a lot of companies opening up offering advancements on your nex wage packet as well , i forgetthe interest rate bit i think it was neat %1000 apr when worked out or somthing extreemly extortionate

shillelagh · 10-06-2010, 23:46

ive said it before .. join the local credit union .. and if you need a loan get it from them .. it works out a lot lot cheaper .. telephone number for the credit union is 01706 215082 ... and they do collections in hyndburn ...

Eric · 11-06-2010, 00:40

Quote:

Originally Posted by shillelagh

ive said it before .. join the local credit union .. and if you need a loan get it from them .. it works out a lot lot cheaper .. telephone number for the credit union is 01706 215082 ... and they do collections in hyndburn ...

Right on! I've been a member of the Kingston Community Credit Union ever since I've been in town. And as it is a Co-op, I get a vote, and I get dividends. And they take care of my insurance needs too, way cheaper than the big insurance companies.

Ken Moss · 11-06-2010, 06:16

Quote:

Originally Posted by big al

Advert for short term loans on TV is posting an APR of 260.1%. I understood loan sharks were being forced out of business but heres one blatently preying on the vulnerable openly & on our tv screens. Many years ago I worked for a while for Provident & was embarrased at their charging 96% for a 2 year £1000 loan but this makes them look like Santa Claus in comparison. How on earth can this have slipped the ASA as such a rate is scandalous. I know the market targeted is high risk but there has to be a limit. Come on Graham, as new MP for the area in a traditionally renown low economy part of Britain show your teeth & show these rip off merchants we dont need them!

There is another advert that my wife and I see every now and then in a morning while we're having breakfast and it's quite openly advertising an APR of around 2960% which boggles the mind.

The girl advertising it is smiling though, so it can't be that bad.....

jaysay · 11-06-2010, 09:21

Quote:

Originally Posted by Ken Moss

There is another advert that my wife and I see every now and then in a morning while we're having breakfast and it's quite openly advertising an APR of around 2960% which boggles the mind.

The girl advertising it is smiling though, so it can't be that bad.....

Ya Ken there are a few of these so called short term loan companies , their spiel is borrow £70 for 5 days will cost you £7-20p

as you say well over 2000% nice work if you can get it

Mick · 11-06-2010, 09:27

There is a certain shop in town ( no names)that's looks good but if you work it out you will be paying a fortune for there goods.

if your going to chat about this please do not use business names as it could cause the site problems ta

pipinfort · 11-06-2010, 09:40

Would you need to wear your sunglasses because of the orange glare from this particular home................?????

Agree fully its a major rip off.....stay well clear. with places like this no wonder people end up in debt.

big al · 11-06-2010, 22:45

Sorry bout the name slip Mick, not intentional. Trouble is these companies prey on areas that have no credit unions & where banks wont touch people living in designated black spot areas for lending. Even credit unions expect customers to pay in for so long before they can take a loan so protect themselves from potential defaulters. With interest rates as they are even banks & credit card rates are scandalous. If this government want to cut back then help reduce our daily costs by setting a fair maximum rate for lending money & shut these rip off merchants down. Its a sad reflection on society that we are living in a buy now pay later environment. What I wont do personally & cos I'm fortunate not to have to use such companies is pay for some fat bloater sunning himself off my hard earned money on his billion pound yacht ducking the flack from those of us who dare to complain & expose these charlatans.

BERNADETTE · 11-06-2010, 23:32

Sorry big al but the only people responsible for obtaining these ridiculous charges are the ones incurring them. I have never had very much in life but live by the maxim of "either save for it or do without". To much of "want it and want it now" for my liking and these companies will prey on that. If you can't afford it do without till you can!

garinda · 11-06-2010, 23:46

Quote:

Originally Posted by BERNADETTE

Sorry big al but the only people responsible for obtaining these ridiculous charges are the ones incurring them. I have never had very much in life but live by the maxim of "either save for it or do without". To much of "want it and want it now" for my liking and these companies will prey on that. If you can't afford it do without till you can!

I agree.

I don't think you can legislate against these companies.

It may be morally wrong, but it's not illegal.

If people are prepared to lend money, and others want to borrow it, so be it.

I'd much rather they be educated about not paying so much interest, or as Bernie said, realising that if you don't have the money to pay for something, you really can't afford to have it.

Mancie · 12-06-2010, 02:48

calm down ..calm down it will all be sorted by the coalition..

jaysay · 12-06-2010, 09:04

Quote:

Originally Posted by BERNADETTE

Sorry big al but the only people responsible for obtaining these ridiculous charges are the ones incurring them. I have never had very much in life but live by the maxim of "either save for it or do without". To much of "want it and want it now" for my liking and these companies will prey on that. If you can't afford it do without till you can!

My sentiments entirely Bernie, if to obtain anything you have to borrow the money (except a mortgage) then you can afford it.

big al · 13-06-2010, 01:59

Problem is that there will always be some who do not see the small print either by ignorance or desperation & then wrap themselves up in a life time of debt. Although trading legally the rates are illicit by way of entrapment. My point is that there should be better information available regarding what interest rates mean & not hidden in the small print. I am lucky to have worked for a short time in the industry so am aware of the meaning of APR but many caught in the web of these companies will not realise until it is pointed out to them by which time it is too late contractually. The addage of wait till you can afford is good for those not tempted but people using these companies are usually already on their way to trouble financially. As I noted before these people are usually unable to either wait & save or unable to borrow from conventional avenues at affordable rates. In the old days this led to people using the local loan shark, which has been addressed to some extent legally. A company is in business to make a profit at the end of the day but there is a difference between profit & ripping people off with exorbitant rates which I consider 200+% to be. I would welcome such companies to justify these rates. Likely they will decline as there is no excuse!

garinda · 13-06-2010, 06:59

There are clear explanations, and tips, on this site.

What is APR? : CFEB Moneymadeclear â€“ products explained

Perhaps learning practical arithmetics should be compulsary part of mathematic exams.