MSE news: The loan firm that charges 2,400% interest

PROLIANT

Solution - Don't use these companies, starve them of their life blood - your money and then simply watch them fold.
Of course it would be too much to ask our pathetic attempt of a government to ban these companies from trading wouldn’t it?

wizk1

michaels wrote: »

Was thinking of doing this but thought it might look a bit poor on my credit file

If anything, it should have the opposite effect. Having some form of credit, paid on time is better than no credit history at all.

ILW

PROLIANT wrote: »

Solution - Don't use these companies, starve them of their life blood - your money and then simply watch them fold.
Of course it would be too much to ask our pathetic attempt of a government to ban these companies from trading wouldn’t it?

There is a place for these types of loans as long as they are used as intended (less than a month). I think the government spend too much time and effort dictating what people are and are not allowed to do.

PROLIANT

ILW wrote: »

There is a place for these types of loans as long as they are used as intended (less than a month). I think the government spend too much time and effort dictating what people are and are not allowed to do.

I whole heartedly disagree; there is no place for loan sharking, pawn shops and similar business models, it is too easy for people who are refused bank loans, credit cards and overdrafts to use these shysters and end up in deep trouble.

What the government should do is offer low interest loans i.e. like the DWP Crisis loans to working people irrespective of their credit history.
This would solve so many problems and help so many genuine unfortunate people.

nomoneytoday

PROLIANT wrote: »

What the government should do is offer low interest loans i.e. like the DWP Crisis loans to working people irrespective of their credit history.
This would solve so many problems and help so many genuine unfortunate people.

Sorry, but I disagree.
If the government will offer cheap loans regardless of history, what incentive is there for people to pay back their original debts?

PROLIANT

nomoneytoday wrote: »

Sorry, but I disagree.
If the government will offer cheap loans regardless of history, what incentive is there for people to pay back their original debts?

The subject needs further elaboration/discussion before negatives can be written.
Ideas?

ILW

These massive APRs quoted are very misleading.
As has been quoted many times before, if I were to lend a mate a tenner and he paid me back tomorrow and bought me a pint, the APR would be someting like 10,000%
Sort term loans are fine as long as people do not abuse them and they know what they are getting into.

Jennifer_Jane

michaels wrote: »

Was thinking of doing this but thought it might look a bit poor on my credit file

I understand from the Quidco thread (on this Board) about Pay Day UK, that no credit check was done - just an ID Footprint (am still unsure what this is, but anyway, no credit check).

They ran this Quidco promotion last year and people seemed to have no hassle (providing they did everything correctly), I've done it too.

If you were in danger of having your direct debits rejected for the sake of £100 or so, then perhaps this would be a useful thing as a very temporary measure. Especially with the Quidco cashback which was £65 when I took this out (£80 loan; repay £100 next payday ie August; Quidco £65: profit £45)

Jen
x

Snakeeyes21

ILW wrote: »

These massive APRs quoted are very misleading.
As has been quoted many times before, if I were to lend a mate a tenner and he paid me back tomorrow and bought me a pint, the APR would be someting like 10,000%
Sort term loans are fine as long as people do not abuse them and they know what they are getting into.

If he paid you back after a week its around 28000% apr, after a day itll be over 150000% apr, but it is a great example to show how inflated the apr becomes when dealing with short term lending.
but a apr of 2400% makes a good headline, even if it is misleading.
i would have expected better reporting from MSE guy.

~Brock~

Snakeeyes21 wrote: »

but a apr of 2400% makes a good headline, even if it is misleading.

............and often a great opportunity for the Minister in charge of the Department Of Deeply-Concerned-About-Everything to pop up out of nowhere and slag off legitimate businesses.

Usually helps to deflect attention from certain other quarters for a few minutes.......:rolleyes: