rip off mobile phones

davek1

bloody hell (sorry for the swearing)

check this out scroll to the bottom of the page and look at the APR:

http://www.phonesonfinance.com/(S(rbtvtt45x4xugue2rqtgu255))/StaticPages.aspx?StaticPageId=HowItWorks

Yep you read right rates from : 92.2% to 100.5% APR

talk about taking the mick and abusing those already struggling. I really am lost for words on this one and that dont happen often

I wonder if they get much business

:mad: :mad: :mad: :mad: :mad:

pennylane99

this was in the Guardian couple of months ago....I think its the same group...

A phone for £135 ... unless you take up the £400 cold call offer
Despite signing up for the telephone preference service (TPS) to avoid junk calls, I was contacted by a company called Alpha Park Direct Credit which offered me a mobile phone. The sales person was insistent on my giving him bank account details. He said the whole thing was backed by Beneficial Group of Leeds. What do you know about this?
SP
Nottingham

Alpha Park Direct Credit claims to come from Leeds but there is no record of any UK company of that name. There is, however, a Park Direct Credit which specialises in selling mobile phones on ultra-high interest deals to those who would fail credit checks.

And this is what you were offered, although you had no need of a phone - let alone one on Park Direct terms where mobiles come without a contract or a sim card.

The phone, a Motorola Silv L7, sells in an unlocked form for around £135.

Park Direct claimed it was worth more than £200 and offered it to you for a £30 deposit and £9.46 a week for 40 weeks. That adds up to an astonishing £400 and an interest rate of 124.7%.

The company's website quotes lower rates - from as little as 92.2% to 100.5% - but these APRs all depend on whose valuation of a phone you accept.

Park says it is backed by the Beneficial Group, a US company with a UK office in Leeds. It has no connection whatsoever with Beneficial Finance, a UK lender which is ultimately part of banking giant HSBC.

Phoenix79_2

Absolute con. If anyone gets a phone from this company they need their head testing.

W810i at £546.09! Its less than £150 on Orange PAYG.

Lets hope this company gets no trade.

pennylane99

more about the company here...

Unique service provides mobile solution to people on limited credit
Brand new Leeds-based company the Beneficial Group is the first in the UK to offer finance for the purchase of sim-free and pre-pay mobile phones.

The Beneficial Group, whose brands include ‘Phones On Finance’ and ‘Phones on Credit’, was founded last year by mobile phone industry veteran Sally Hill. The company, which employs more than 75 people in Leeds and Gurgaon, India, offers a range of affordable finance plans to consumers with limited credit ratings who cannot obtain conventional network contracts.

http://www.ramedia.co.uk/cgi-bin/template.pl?t=npd2005&ID=89

davek1

i really am flabergasted at this but i guess someone must buy them otherwise they would be out of business. it just makes my blood boil that companies like this prey on the vulnerable. i have to question whether there should be some sort of legislation put in place to get rid of this type of selling.

Dave

Pan_3

davek1 wrote:

i really am flabergasted at this but i guess someone must buy them otherwise they would be out of business. it just makes my blood boil that companies like this prey on the vulnerable. i have to question whether there should be some sort of legislation put in place to get rid of this type of selling.

Dave

It is totally disgusting and morally repugnant but then what do you expect in the sort of society we now live in.

I live in a small welsh ex mining town and the town centre is expanding with stores like Brighthouse, Cash Convertors and Cash Generators etc etc all these stores are designed to appeal to the most financially disenfranchised in these communities.

It is really hard to see what incentive the Government have to legislate against companies like this that hawk their wares with massive APR's. The age old arguement will be trotted out that these companies are only providing a service and that the consumer can take it or leave it.

Ultimatly, IMO the main problem is that we live in a society that makes us believe that we have to own the latest Walkman mobile phone in order to be a valid person. As mentioned this company must have customers or it would not exist....the SE w810i can be bought sim free from CPW for £150 if you had the cash to spend, some people who do not have that money must have come to the conclusion that they are prepared to get into £550 worth of debt to own that phone. The mindset that comes to this conclusion and the society that accepts it go hand in hand with this cancerous companies that prey on the most vulnerable.

Kevicho

Recommend a friend for 25 quid!

Some friend you would be.

At the end of the day, mobiule phones are luxury items, no one should be desperate enough for one to pay these prices, especially when you can prob buy a decent second hand one for a tenner and then go payg

Kevicho

At the end of the day, this company is filling a need in the market.

While i do not agree with there ethics, fundamentally as davek said, there must be people buying these phones, for the company to make money.

Also note they hire 70 people in weeds and india, so customer support, and probably the cold calling will be done over there,

itsarichmansworld

Can I just point out to anyone who "needs" a contract phone that this is not a way to go

Although I know hate giving them business 02 cpw do not fail credit checks instead you will be asked for a deposit depending on you creidt score its'll be between £50 and £500 :eek: But its a deposit so you do get it back,

I know 1 customer who did pay the £500 as she needed it for her business she had and was spending £400 a month on pay as you go!