Horrifying Email

nembot

inmypocketnottheirs wrote:

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

_Andy_ wrote:

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.

Well it's pretty clear the lack of regulation has ultimately pushed us into the current situation, with greedy banks who started the ball rolling and now the subprime lenders offering loans with ridiculous interest rates to people who are obviously in dire need of help, it's clear to see why Europe is in nowhere near the mess the UK is heading towards.

We are the credit nation of the EU, which ultimately means the money going to these lender's is essentially taken from the retail economy as a whole. Yes they will be paying tax obviously, but the economy needs more than greedy lenders taxation to survive. It's a fairly rudimentary concept afterall, but maybe you'll both be happier when the only safe jobs are with the Provident and we have another two million people from the retail sector on the dole.

Judging by the recently released numbers, that's only a couple of years away at the current rate of job losses.

You can both then be very proud of how your companies who can do no wrong, are keeping five thousand people in a job.


Words fail me...

jamesd

nembot, what rate of interest do you think would be fair if a lender experienced borrowers defaulting so that 50% of the money borrowed wasn't repaid on their one year loans?

Snakeeyes21

LeedsBS wrote: »

Websites offering such loans are now being advertised on TV, attracting a much bigger market, with a much worse rate than the email.

Quick Quid advertises a horrible "TYPICAL 2356% APR."

These arent loans over a year, they are 1 month loans at around 25% interest, the APR isnt relevant for short term lending.
borrow £10 off a mate untill the end of the week, you pay him babk and buy him a pint for doing you a favour, now turn that pint in to an APR, your paying nearly 30.000% APR.
mabe the government should regulate or ban mates doing favours for each other due to the high APR

[Deleted User]

dfh wrote: »

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

Although I agree with some of the other posters in that nobody is forced to take out these loans I do get mad the way they target the most vulnerable.

For example I had a leaflet pushed through my door offering car finance. It was for a huge APR. Not huge in comparison to some of the others named here, however here lies the problem.......

I live in a fairly depived are of Liverpool. I can not name many in my street who work, most rely on benefits, have disabilities or are penisoners etc.

Included on this leaflet was a load of 'blab' about Capital of Culture & the it had the 08 logo. In my opinion luring (already deprived) people into believing this company had the permission and support of the 08 company and more importantly the council.

I found out the name of the marketing director of the 08 company and the council.
I made a 'complaint' about this company and their use of the 08 logo to lure already deprived people into taking out loans they could not afford, perhaps based on their use of the logo, who then may default and be even further deprived.

I'm pleased to say the city solicitor came to see me & assured me they did not give permission for this use of their logo, took the leaflet and the company was sued by the Council and the 08 company for using the logo

To date I've not received any more leaflets about car finance.

cyclingyorkie

well done you!

~Brock~

nembot wrote: »

Well it's pretty clear the lack of regulation has ultimately pushed us into the current situation, with greedy banks who started the ball rolling and now the subprime lenders offering loans with ridiculous interest rates to people who are obviously in dire need of help, it's clear to see why Europe is in nowhere near the mess the UK is heading towards.

What do you mean 'and now the subprime lenders offering loans with ridiculous interest rates..." - they have been doing it for years. Doorstep loans were a huge business in the 1970's !!!

The reason Europe is according to you, nowhere near the mess the UK is in would partly be because the typical population of Europe tends to grow up in a more stable and secure family environment, where the main aim of children is not to get away from their parents at the first opportunity thus racking up huge debts at an early age. Also the Europeans to not have the peculiarly British 'my home is my castle' mentality which assumes that you are some sort of 2nd class citizen if you do not own your own home.

nembot wrote: »

We are the credit nation of the EU, which ultimately means the money going to these lender's is essentially taken from the retail economy as a whole. Yes they will be paying tax obviously, but the economy needs more than greedy lenders taxation to survive. It's a fairly rudimentary concept afterall, but maybe you'll both be happier when the only safe jobs are with the Provident and we have another two million people from the retail sector on the dole.

Judging by the recently released numbers, that's only a couple of years away at the current rate of job losses.

So in your 'ideal' world there would be no ability to lend or borrow money? That would really help the manufacturing industries wouldn't it - having to wait until I've saved up for that new car!!

There is no doubt that the credit has been a non prescription drug, available over the counter, to the UK population over the last 10 years, and it is now having to go cold turkey.

Seeing as though you seem to like casting the finger of blame, why not also point it in the direction of this government, whose 'spend today worry about it tomorrow' policies have hardly been a beacon of responsibility to everyone else.

You clearly, however, have absolutely no grasp of economics if you cannot appreciate the essential part that credit plays in health of any developed economy.

You also, clearly, have no grasp of the essential element of any business - PROFIT. If you are from the tree-hugging lefty school of thought that any profit is bad then you also shouldn't be here on the internet wasting the planet's resources - get back to your commune, because sensible debate will obviously be impossible. If you do agree that profit is not a actually bad thing, then you do not appear to have a handle on the concept of risk, the ongoing costs of running a business, and the ludicrous measurement tool (APR) that carries nomeaning to short term lending.

nembot wrote: »

You can both then be very proud of how your companies who can do no wrong, are keeping five thousand people in a job.

Never let the facts get in the way of a good story eh?

nembot wrote: »

Words fail me...

Ditto.

inmypocketnottheirs

~Brock~ wrote: »

What do you mean 'and now the subprime lenders offering loans with ridiculous interest rates..." - they have been doing it for years. Doorstep loans were a huge business in the 1970's !!!

The reason Europe is according to you, nowhere near the mess the UK is in would partly be because the typical population of Europe tends to grow up in a more stable and secure family environment, where the main aim of children is not to get away from their parents at the first opportunity thus racking up huge debts at an early age. Also the Europeans to not have the peculiarly British 'my home is my castle' mentality which assumes that you are some sort of 2nd class citizen if you do not own your own home.



So in your 'ideal' world there would be no ability to lend or borrow money? That would really help the manufacturing industries wouldn't it - having to wait until I've saved up for that new car!!

There is no doubt that the credit has been a non prescription drug, available over the counter, to the UK population over the last 10 years, and it is now having to go cold turkey.

Seeing as though you seem to like casting the finger of blame, why not also point it in the direction of this government, whose 'spend today worry about it tomorrow' policies have hardly been a beacon of responsibility to everyone else.

You clearly, however, have absolutely no grasp of economics if you cannot appreciate the essential part that credit plays in health of any developed economy.

You also, clearly, have no grasp of the essential element of any business - PROFIT. If you are from the tree-hugging lefty school of thought that any profit is bad then you also shouldn't be here on the internet wasting the planet's resources - get back to your commune, because sensible debate will obviously be impossible. If you do agree that profit is not a actually bad thing, then you do not appear to have a handle on the concept of risk, the ongoing costs of running a business, and the ludicrous measurement tool (APR) that carries nomeaning to short term lending.



Never let the facts get in the way of a good story eh?




Ditto.

Fantastic post!:beer:

Gorgeous_George

I think the answer might be to require all borrowers to possess a certificate in financial awareness. Perhaps an NVQ or similar and for APRs and loans to be limited to (for example) 30% and £1,000 for all loans made to non-NVQ holders.

If you want a larger loan or a larger APR, you get the NVQ.

GG

nembot

~Brock~ wrote: »

What do you mean 'and now the subprime lenders offering loans with ridiculous interest rates..." - they have been doing it for years. Doorstep loans were a huge business in the 1970's !!!

The reason Europe is according to you, nowhere near the mess the UK is in would partly be because the typical population of Europe tends to grow up in a more stable and secure family environment, where the main aim of children is not to get away from their parents at the first opportunity thus racking up huge debts at an early age. Also the Europeans to not have the peculiarly British 'my home is my castle' mentality which assumes that you are some sort of 2nd class citizen if you do not own your own home.



So in your 'ideal' world there would be no ability to lend or borrow money? That would really help the manufacturing industries wouldn't it - having to wait until I've saved up for that new car!!

There is no doubt that the credit has been a non prescription drug, available over the counter, to the UK population over the last 10 years, and it is now having to go cold turkey.

Seeing as though you seem to like casting the finger of blame, why not also point it in the direction of this government, whose 'spend today worry about it tomorrow' policies have hardly been a beacon of responsibility to everyone else.

You clearly, however, have absolutely no grasp of economics if you cannot appreciate the essential part that credit plays in health of any developed economy.

You also, clearly, have no grasp of the essential element of any business - PROFIT. If you are from the tree-hugging lefty school of thought that any profit is bad then you also shouldn't be here on the internet wasting the planet's resources - get back to your commune, because sensible debate will obviously be impossible. If you do agree that profit is not a actually bad thing, then you do not appear to have a handle on the concept of risk, the ongoing costs of running a business, and the ludicrous measurement tool (APR) that carries nomeaning to short term lending.



Never let the facts get in the way of a good story eh?




Ditto.

Contrary to your opinion I do have a reasonable grasp of the economic situation, own my own property almost outright and ran my own business for a number of years (for profit) so I do understand the monetary system to an extent.

I was telling people 3/4 years ago about where the country was heading, much to their amusement - yet nobody is laughing now.

Obviously I am attributing blame here as due to the lack of regulation, the country is in a right pickle and the Goverment should undoubtably share the blame.

My experience comes from life, I do not apologise for my opinion - it is mine and I'm entitled to it - if you can't deal with it, that's your problem.

dfh

I understand that banks/loan companies are there to make a profit like any other business and they are entitled to profits as that is how they pay their costs and salaries.What I am concerned about is that some of their tactics border on exploitation.When a person defaults,some levy ridiculous charges like 8 pounds a day or 25 pounds for a telephone call/letter.Surely if the person cannot even repay the minimum how is he going to pay all of the charges? Surely the companies would stand a better chance of recovering their money if they negotiated something with the borrower so that they pay off whatever they can.I had a case of a person who kept telling his bank he was about to default on his mortgage.They kept saying that there was nothing they could do untill he actually missed a payment.When he eventually missed a payment,They slapped a charge of 200 pounds on him and told him to go to the CAB !
I have absolutely zero sympathy for people who try to wriggle out of repaying their debts but for people who are in diffficulty and trying to repay their debts there should be some respite.As a society,we do have to provide some protection to vulnerable sections.