I can have a loan ... but at 189.2% APR !

incher

I'm not in the market for a loan at all, but got a letter in post today from xxxxx Personal Credit, offering me cash loan up to £800.

They provide a handy example: Cash loan amount £300. 57 weekly repayments of £9. Total amount payable £513. typical 189.2% APR.

"Remember Ms XXXX, even if you're unemployed or in rented accommodation, you could still get a loan."

I'm horrified tbh. I'm just glad I don't work for loan sharks masquerading as proper credit companies like this one. Not sure my conscience could stand selling extortionate loans to what must already be desperate people. Makes me want to cry thinking of the circumstances of anyone who takes up such a loan.

Surely it's immoral and the government should put a stop to it? What do you think?

ps2659

incher wrote: »

I'm not in the market for a loan at all, but got a letter in post today from xxxxx Personal Credit, offering me cash loan up to £800.

They provide a handy example: Cash loan amount £300. 57 weekly repayments of £9. Total amount payable £513. typical 189.2% APR.

"Remember Ms XXXX, even if you're unemployed or in rented accommodation, you could still get a loan."

I'm horrified tbh. I'm just glad I don't work for loan sharks masquerading as proper credit companies like this one. Not sure my conscience could stand selling extortionate loans to what must already be desperate people. Makes me want to cry thinking of the circumstances of anyone who takes up such a loan.

Surely it's immoral and the government should put a stop to it? What do you think?

Should try https://www.Zopa.com

mdean

incher wrote: »

Surely it's immoral and the government should put a stop to it? What do you think?

Letter is the standard one from the Provident.
However if you look at the research people in deprived areas who cannot borrow from anyone else like the Provi
Mainly because when the washer breaks or they need a new pram they give them the money and come and collect it weekly in person.
If the govt banned the Provi or capped APRs then this service would only be provided by criminals....real loan sharks

Zopa is not an alternative for these customers, but credit unions are

Robert_Sterling_3

There are in the financial market place "Lenders of last resort". They lend where other lenders fear to tread.
They take higher risks and charge higher rates.
Horses for courses.

Pobby

It`s so sad that people don`t use their local credit union instead of these door step lenders.

[Deleted User]

incher wrote: »

They provide a handy example: Cash loan amount £300. 57 weekly repayments of £9. Total amount payable £513. typical 189.2% APR.

The shorter the Loan term, the higher the rate will be. Question why you would need £300 over a year term. Thats less than a weeks pay so you would have to be pretty desperate for that. There is a high chance of defaulting, hence why the rate is high.

I disagree with lenders offering these loans because usually whoever they are offered to are stupid/desperate enough to borrow it.

Robert_Sterling_3

Having an APR of 189.2% is not the same as having an interest rate of 189.2%.

cd36uk

Pobby wrote: »

It`s so sad that people don`t use their local credit union instead of these door step lenders.

Sorry that i am a late comer to this thread but i have been searching through for information on credit unions, and found this thread. I know very little about them and in the process of doing a bit of research to see if it is a possibility for me but I am struggling to find one that is in or covers my area.
I live in what would be classed as a greater london area, not out in the sticks or anything like that and so am really amazed that I am having so much trouble in locating one. I have googled like mad and am getting nowhere!

Thriftysaver

Try www.abcul.org. and fill in your area.

Hth

cd36uk

Thriftysaver wrote: »

Try www.abcul.org. and fill in your area.

Hth

Thank you for your help with that, sadly it seems the london boroughs surrounding where i live have credit unions but none that cover where I am :rolleyes:
amazing but true!
Thanks anyway

Livingthedream

189.2% the Mafia only charge 200%