Dispatches, Christmas on Credit. Watch it on 4OD

kabayiri

PasturesNew wrote: »

I don't know, but I do know there aren't many. To start a credit union, you have to have a group of people that have something in common (e.g. all live on the same estate, in the same area), then there's proper setup procedures. Then everybody has to save for some time before they're allowed to borrowl.

It's amazing isn't it. We have thrown billions of tax payer pounds at the high street banks, and they will still turn their noses up at the poorest layer in society.

I'd tell the RBS bankers to swivel for their 1.5 bn bonuses and give it to credit unions.

wageslave

lemonjelly wrote: »

Saw part of this last night.

Bright House. 29.9% APR. Plus - prepare to be shocked - they add on all sorts of extra charges for stuff that you don't need & is in fact optional.

It is PPI all over again.

A quick look at Currys website shows that 29.9% APR seems to be par for the course for in- store finance. They offer a six months interest free option period if you spend over £250 but you are actually signing up to a four year agreement. Owe one single penny when the IFO period ends and you are locked in.

Part of me wonders why companies like Bright House are able to sustain themselves. Then again, I suppose they just manage by selecting the most vulnerable sectors of society who are less aware of their consumer rights, or less able to comprehend the implications of 29.9% APR. Or are just less likely to say "do I have to have that insurance, or is it optional?"

I would imagine they are just so grateful to be getting the washing machine/sofa/whatever they dont feel they are in a position to argue.

I very much doubt that, when it comes to optional warranties, sharp selling practices and slick talking is confined exclusively to Bright House.

One thing, the programme identifies that the goods are on a rent to buy scheme. What they actually are is a Hire Purchase agreement, which gives the consumer less rights & increases charges.

One other thing. rofessionally speaking I find Bright House to be scum. Unfriendly, at best they are less than honest, one of the quickest companies to add on all sorts of costs, soul-less, unsympathetic, and unreasonable.

If they went bust, I would jump for joy. & sorry to say it, but I have encountered their staff, and wouldn't shed a tear for them either.

I have never even seen a Bright House store let alone been in one but I would bet you my last tenner that Bright House pays its staff minimum wage plus commission on insurances and warranties.

abaxas

Quick question...

In the past people would save to buy things. Why now, do they need credit?

nearlynew

abaxas wrote: »

Quick question...

In the past people would save to buy things. Why now, do they need credit?

Because debt is the new wealth.

wageslave

abaxas wrote: »

Quick question...

In the past people would save to buy things. Why now, do they need credit?

I think money lending has been about for some considerable time.

I have heard it called the second oldest profession:cool:

ThrowingStonesAtYou

nearlynew wrote: »

Because debt is the new wealth.

Didn't you hear, there is no such thing as borrowing, it is now called 'investment'

lostinrates

abaxas wrote: »

Quick question...

In the past people would save to buy things. Why now, do they need credit?

In some cases it would make sense.

A washing machine was raised earlier in the thread...so if a washing machine conks out, you might chose a laundrette, I have no idea what that would cost per wash I'm afraid, but assuming, that at least three washes (coloures, darks and a whites) are going on, which is a conservative estimate I think, that might well equal the interest. Then there is the time....if your working thats an issue. If you have grubster children/more than one bed to strip and wash then you're going to find at some point it is easier and possibly as cheap or cheaper to get the finance.

Snooze

I don't really see what all the fuss is about.

NINJAs (No Income, No Job or Assets) should obviously not be entitled to the same credit terms as non-NINJAs quite simply because they are a MUCH higher risk.

People need to learn that you can't have stuff if you haven't got any money and all these companies cater for such people and charge interest rates accordingly to cover their !!!!!!. If you don't like the terms then get a job and save like the rest of us have to do. No sympathy for any of them.

R

abaxas

lostinrates wrote: »

In some cases it would make sense.

A washing machine was raised earlier in the thread...so if a washing machine conks out, you might chose a laundrette, I have no idea what that would cost per wash I'm afraid, but assuming, that at least three washes (coloures, darks and a whites) are going on, which is a conservative estimate I think, that might well equal the interest. Then there is the time....if your working thats an issue. If you have grubster children/more than one bed to strip and wash then you're going to find at some point it is easier and possibly as cheap or cheaper to get the finance.

You could buy a 2nd hand one, then start saving your £7 a week. Then when that breaks, you have money.

There is no reason for credit apart from large purchases, if there is, it's becasue people are stupid.

Maybe we are too scared that lots of us are stupid?

lostinrates

abaxas wrote: »

You could buy a 2nd hand one, then start saving your £7 a week. Then when that breaks, you have money.

There is no reason for credit apart from large purchases, if there is, it's becasue people are stupid.

Maybe we are too scared that lots of us are stupid?

Yes you could...and should...if you have the money for the second hand one.