A pound of flesh?

Broken_hearted

Tr&#64 wrote: »

Yes and if the risk is greater wouldn't that mean the risk of firms not getting repayment is EVEN greater from those least able to pay ?

You are missing the point, charging such high rates means they can afford it if some people fail to pay.

astonsmummy

Well as you can see by my sig, i have two of these extortionate loans, i got one for xmas, then my fridge broke so i got another one, at the time it seemed like a good idea, but now i regret it. my payments for them add up to £ 20 per week, and i have all my other outgoings. i'll never get them again. but they dont make it easy, yesterday i received a lettrer from provident offering me £300!!!!
luckily since joining this site my attitude with money has changed, but many more people arent fortunate enough and keep getting deeper and deeper, i know a lady who pays £80 per week in loans. madness!! :eek:

Tr@cker

No YOU are missing the point. If people dont pay it doesn't matter if the APR is 3% or 300%-the firms get nowt-those least able to pay are surely the MOST likely to default and if they are having to pay silly prices for credit even more so.

bizzy_lizzie

I had no idea that the APRs were this bad or that it was quite so common, I have had a complete change of heart & think it should be regulated. I agree that we are a market led economy etc but they are preying on the most vulnerable members of society, i.e. the desperate.

My car went into the garage with a water leak yesterday & needs £750 worth of repairs. I really didnt plan for that sort of expenditure. What would I do without savings & access to affordable credit, pay it off for the rest of my days ?

D&DD

Speak of the devil...just had a loan offer in the post from provi..only 177% APR :eek: :eek:

System

I got some junk mail from 'Vanquish' credit card ( I think) asking me to apply for a credit card at 39.5%. You do wonder about mailing lists. I have never had junk mail mentioning APRs that high. I wonder if somehow they have got wind of my current financial situation. 39% outrageous!

karenk857

I've got a provi loan (alas!). I borrowed £1500 from them last August, I can't remember the APR off the top of my head, but the total I'll pay back is £2800, which isn't paid off til May 07 at £140 a month. I don't work though, I'm a stay at home mum and my partner is completely unable to get any sort of finance. We really were stuck for the money, so it was our only choice. NEVER AGAIN!!!!

Karen

amosworks

suzieq wrote:

was pleased she had been accepted for a loan by Welcome finance. And whilst I'm not certain if this company is a doorstep lender, I was horrified to see her APR was 54.8%!! :eek: I can't believe these companies get away with this. It just seems that this is how people get themselves in deeper and deeper.

My housemate works for Welcome Finance and she and I talk a lot about what goes on in there (with absolutely no regards to data protection and/or customer confidentiality hehe). Fortunately she's quite a moral person (apart from telling me about all her customers lol) but she also has a job to do. She often tells me how stupid the customers are when she points out the ARP and tells them "You're going to be paying £2000 back for just a £400 loan" and the customers are like "Yeah whatever where do we sign?"

I have to agree, a lot of customers are stupid and I don't think it's ALWAYS the credit industry taking advantage of them. Doubtless the people after the £400 loan will be on the forum in several months saying how Welcome deceived them and "we had no idea they'd want £2000 back etc."

Funny story, she had one guy phone up saying he couldn't pay back interest because it was against his religion. Account defaulted lol.

D&DD

lennymfo wrote:

I got some junk mail from 'Vanquish' credit card ( I think) asking me to apply for a credit card at 39.5%. You do wonder about mailing lists. I have never had junk mail mentioning APRs that high. I wonder if somehow they have got wind of my current financial situation. 39% outrageous!

I got one of those too lenny..I must have MUG written in big letters on MY creditfile.. :rotfl:

Broken_hearted

It keeps the postman in a job.