39.9% APR a Disgrace

inmypocketnottheirs

kenshaz wrote:

The trouble is some people are vulnerable and perhaps not as alert as others ,that does not mean that the should be taken advantage of,better in our pockets and not in theirs.
Perhaps like bank charges.
I do not like some of the adverts recommending consolidated debt,but I want my voice heard ,so it is not simple.;)

But also, does that mean that people who are trying to re-build their credit, and can not get accepted by mainstream card providers at 'standard' rates should be excluded? You are absolutely correct, it is not that simple.

rhig

I agree that there is a legitimate market for these cards, as has been stated if someone needs to rebuild their credit this is a useful tool if they are not accepted anywhere else. 40% is very high but if someone needs to pay for food or bills to make ends meet this could be a lifesaver, besides it is lower than any check cashing company or cash loan shark.

I believe the lenders in this market should also adhere to stricter rules to ensure these cards do not build long term debts though. This could be helped by having a relatively low credit limit on the card - the £2000 here is huge, (£2 interest per day if the card is maxed out). Having a higher minimum payment e.g. 5% of the balance is a great idea as it reduces the use of revolving credit.