OMG is this for real???

meece

lazy&indebt wrote:

WHAT?!!!!!

re: Uncle Buck
I couldn't believe the interest rate either - so I've just double checked and its correct. They're loans for people who cant wait for payday, so they charge amazing interest for a short period- not that thats an excuse!

scotgirl2

wow i am so shocked i am speechless

Mrs_Arkwright

I do not in any way advocate any of these companies...but (and hear me out here!)

£100 over 23 weeks

You would repay £147.20 giving an APR of 497.4% (according to their site)

so you are repaying your £100 (which is fair and right) and then £47.20 for them lending you the money in the first place, and coming out to you 23 times to collect weekly payments. I don't think that's an unreasonable charge. I would bet that for those 23 visits, it costs them more to pay the rep his wages, his mileage etc etc than 47 quid.

So I don't think that the APRs give a true reflection of what you are actually paying for.

I'm bound to get totally flamed for that. But can you see what I'm saying? I probably haven't put it very clearly. I know what I mean

lazy&indebt

Mrs_Arkwright wrote:

I do not in any way advocate any of these companies...but (and hear me out here!)

£100 over 23 weeks

You would repay £147.20 giving an APR of 497.4% (according to their site)

so you are repaying your £100 (which is fair and right) and then £47.20 for them lending you the money in the first place, and coming out to you 23 times to collect weekly payments. I don't think that's an unreasonable charge. I would bet that for those 23 visits, it costs them more to pay the rep his wages, his mileage etc etc than 47 quid.

So I don't think that the APRs give a true reflection of what you are actually paying for.

I'm bound to get totally flamed for that. But can you see what I'm saying? I probably haven't put it very clearly. I know what I mean

I catch your drift Mrs A!
Rep wouldn't just drive to one persons house in one area though surely? So if there were like 5/6 people in one are then he would certainly mmake enough!

rog2

Mrs_Arkwright wrote:

I do not in any way advocate any of these companies...but (and hear me out here!)

£100 over 23 weeks

You would repay £147.20 giving an APR of 497.4% (according to their site)

so you are repaying your £100 (which is fair and right) and then £47.20 for them lending you the money in the first place, and coming out to you 23 times to collect weekly payments. I don't think that's an unreasonable charge. I would bet that for those 23 visits, it costs them more to pay the rep his wages, his mileage etc etc than 47 quid.

So I don't think that the APRs give a true reflection of what you are actually paying for.

I'm bound to get totally flamed for that. But can you see what I'm saying? I probably haven't put it very clearly. I know what I mean

On relatively small amounts, it is true that apr is of little consequence, as you are paying for the convenience (bit like buying a can of beans from the corner shop, for 90 pence when you know that you would have paid 25 pence if you had gone to ALDI) so for the odd loan it can be quite useful, in certain circumstances.
HOWEVER (study their website a bit closer) Uncle Buck will automatically open an account for you, so you don't need to fill in your details next time you require a loan. They offer, a bit complicated though, the option of monthly repayments and top-up loans, with loans of up to £1,000.00.
Starts to get a bit scary when you look at the FAQ section.

Mrs_Arkwright

lazy&indebt wrote:

I catch your drift Mrs A!
Rep wouldn't just drive to one persons house in one area though surely? So if there were like 5/6 people in one are then he would certainly mmake enough!

That is true, (I'm playing a bit devil's advocate here ) - but it's 2 quid a visit, which I think is acceptable, even if he is doing several a day.

Mr A is a plumber - if he fits one fire in a day, the customer gets charged £x - if he fits two in a day, both customers still get charged £x - he doesn't drop his charges just because he's doing two or three in the same day, even if they live on the same street. You get my drift again?:D

I do totally accept that these companies probably aren't doing it out of the goodness of their hearts though, and I wouldn't touch one with a bargepole.

In_Search_Of_Me

Incredible. I know that people use them. I fully understand WHY they use them in total desperation. It may seem to some value for money because they lend to the most vulnerable & desperate. I know all that but it still makes my blood boil. The most vulnerable yet again being screwed (dont get me onto rates for gas/electric meters!).
Its wrong & there should be some law that limits the amount of interest that can be charged. Start a crusade I say. Yes there will always be loan sharks but stopping supposidly respectable cos from doing this MAY help. And I thought the TV adverts were bad!!

ZTD

fishface-69 wrote:

Its wrong & there should be some law that limits the amount of interest that can be charged. Start a crusade I say.

They serve a function, and it's a pretty important one. The APRs do look horrendous, but APRs are misleading over short periods of time. Think of it this way: You borrow fifty quid off a mate a week before payday to tide you over. The next week, you repay it and buy them a drink as a thanks. Would you like to calculate the APR on that?

fishface-69 wrote:

Yes there will always be loan sharks but stopping supposidly respectable cos from doing this MAY help.

Ursury laws always drive people into the arms of the loan sharks. It's not like the provvy where they'll come back next week and nag you a bit more, the next week the sharks come back, your loan has doubled and they've brought a bat for company.

As long as they make their costs plain and transparent, I don't really have an issue with what Provvy-a-likes charging. Yes it's a lot, but if you're going to the Provvy, then you are by definition "high risk".

elantan

i used to workfor one of these companies a few years ago(needed the money for family) i used to beg people not to take loans out (i was on a set wage of £80 a week for 4 hours work) but to go to the credit union ..i had a few people beg me for the money and i would sit in their houses and explain exactly how much it was gonna cost and try and talk them out of it (can you tell i didn't last long in that job) but they would insist on getting it so they would borrow£1,000 and apy back£1,800 and something over the course of a year then spend the money on drink or going out...or toys for kids(it wasn't always at xmas time) then when i went to pick up their money every week they would give me £1 which in scotland stops the baliffs ..i didn't care either way if they only gave me a pound i still got paid ..sometimes i only collected £50 but still got paid £80 ..just had to share that story with you ....

Mike_St_Helens

:eek: I dont want to sound like im defending them. However when your credit rating is knackered and you need a small loan for a fridge, washer etc etc... for some people they are the only people who will lend to you and its a lifeline.

Yeah the interest rate is very high, but when you think its a cash business that is always much more expensive, they have to pay field staff, petrol each week for xxx amount of weeks...

As I said, Im certainly not glamourising them, but if desparate needs are there, then sometimes people have to come to desperate solutions.

P.S - no am not an agent, please go nice on me !!