Horrifying Email

glossyhair

dfh wrote: »

I have no sympathy for people who use such loans to purchase non-essentials like big TV's ,etc.But there should be some protection for vulnerable people on low incomes who have to borrow at these rates to make ends meet.

Exactly! Its not always about having the latest TV but often about buying food so they are not hungry or paying an electricity bill so they are not cut off or even getting a car repaired !!! Desperate, vulnerable people in desperate times that need protection and support.

Gorgeous_George

They also need a loan. Outlawing higher APRs would remove the opportunity for them to get credit.

It is because they are a poor credit risk that the rates are high. The smaller the loan, the higher the APR.

If someone needs a loan to eat or pay for utilities that they have used then a loan is not the answer to their problems.

The protection is the clearly visible APR. Maybe it should be coloured in.

GG

~Brock~

Gorgeous_George wrote: »

The protection is the cl;early visible APR. Maybe it should be coloured in.

.....in crayon.

nembot

Isn't there a limit in Europe regarding the maximum interest rate a company can charge?

Yet in Britain, these companies get away with murder, the goverment should step in and stop this now!

_Andy_

nembot wrote: »

Yet in Britain, these companies get away with murder, the goverment should step in and stop this now!

How are they 'getting away with murder'?
They clearly advertise a loan at X rate (in this case to reflec the higher level of risk to the sub-prime borrower). A borrower then decides to apply, knowing full well in advance what the interest rate and payments are.
I fail to see how the company is 'getting away' with anything.

inmypocketnottheirs

nembot wrote: »

Isn't there a limit in Europe regarding the maximum interest rate a company can charge?

Yet in Britain, these companies get away with murder, the goverment should step in and stop this now!

Oh my god. Terrible. Shocking. How can they? I mean......

Gorgeous_George

I guess we need a law that says adults cannot go out without a responsible adult.

Sometimes we complain about the nanny state and in the next breath we demand one.



GG

never-in-doubt

Why don't we just go one step further and invite Fidel Castro to live here - and as part of the deal, do what he does best!

dfh

Quite often,vulnerable people may have learning difficulties or mental health problems.These people risk being exploited.The elderly are particularly vulnerable.

StuTheDon

dfh wrote: »

Quite often,vulnerable people may have learning difficulties or mental health problems.These people risk being exploited.The elderly are particularly vulnerable.

So what is your solution? If you ban any APR higher than x amount then the banks will stop lending to sub primes.

And then you will have people in this group complaining they cant get a loan!