Provi... etc...etchics

astonsmummy

lynzpower wrote:

but dont charge them interest in that week!

Beanielou, my local credit union is 23% for loans. Erm no thanks. And you have to have saved something to join up.

Astonsmummy, personally, I would have gone for a catalogue instead, at least you get X amounts of weeks interest free.

I cant get catalogues, my cooker broke down a few months after and i ended up getting one off mum's friends one which was much cheaper! but if i didnt have her i would of been well stuck.

jamesd

It's a business providing a service people need. Make your terms clear, act only legally and with such compassion for the unexpected as the business allows and you're fine. Be sure that you undercut any local illegal lenders with illegal collection tactics.

Tassotti

Ok, I'm going to try an answer all posters in this post.

Lynz..'affordabilty'

We have quite a comprehensive application form, and included in this is Income, Outgoings (obviously not exact) and other loans from other lenders.

However, it is not unknown that potential clients will 'bend the truth' (blatantly lie) in order to receive a loan; We have clients who tell us they have no loans from other companies, and sometimes we wait in line, after the other agents, to collect the money.

Georgiasmum - Thank you. Hope we are the sort of company that can help you out in difficult situations.

Silvercar - for £100 it's thumbscrews...for any more ..baseball bats....:D

Joking...we initially try and offer a solution..ie reduced weekly payment if clients are generally in trouble...for those taking the proverbial, court and baliffs

As an aside, I had to visit a client who was in arrears the other day. As i approached the property, I thought no-one was in. However, it turns out the girl who has taken out the loan has been beaten up be her (ex) boyfriend) , he has all the money, she is living in a place with no gas, electric, cannot feed her kids and has no cigarettes.

This is why I am asking about ethics! I put her gas/electric back on..took her shopping and provied nappies for the kids, a packet of fags...etc

@beanilou : credit unions require a potenitial borrower to SAVE money before borrowing.....

This goes for all brokers who say'give me £50 and I'll find you a loan'.,It happens

Catalogues... didn't someone mention intertest free? Don't think so...these people are the sneakiest people.

Eg

Buy a leather jacket (Royal family fo any fans)

Cost £370 (£7.12 per week)

Just an example

@Astonmummy, happy to help

Tass

bluetimone97

Not all credit unions insist you put money in before taking out, we have one that advertises where I work (Southampton/Portsmouth) that does not and it charges alot less than provident etc.
It is aiming to fill the gap between people that cannot access regular bank loans and have to use provident.
An Example £800 would be about £13 a week, paying back £950, with provident that same £800 would cost about £1200/£1300.

Just to make it clear I am not against provident or said companies (as said they are providing a service and have a high risk market), but sometimes there are other companies that are less heard of.

http://www.part.org.uk/

lynzpower

the one you have stated there has APRs of 24% for less than a grand.

in the case of Astonsmummy ( appreciate your position hun)
Wants to buy a new cooker.
http://www.bennettsonline.co.uk/about_us/general_information.php
an interest free credit option is here with bennetts

Cheapest electric cooker is here
http://www.bennettsonline.co.uk/household/cooking/electric-cookers/beko-s512w-37105035

at 138

thus this would be a "put away per week of" 2.65 per week. I doubt any doorstep lender would charge less in interest of 2.65 per week over a year.

Clearly doorstep lenders or similar can enable people with poor budgeting skills to stick to a budget- if someones at the door, you know you have to pay them otherwise you wont get the credit as easily again ( maybe ) Much easier to avoid your responsiblities and get into bad credit situs with a more remote company.

Secondly of course, if credit ratings arnt up to it - the DWP offers both budgeting and crisis loans at 0%

In choosing one of these, the customer can get a cheaper cooker from a freind/ neighbour/ loot/ car boot sale/ house clearance etc.

Just to remind those who dont know, join your local freecycle, where electrical appliances regularly come up for free, as they cant be given to charity shops.

Additionally, there are furniture reuse/ recycling networks that often have white goods and furniture that are reconditioned.

http://www.frn.org.uk/ search for your nearest

Maybe TAss you could give a leaflet identifying
a) cheaper ways of getting the credit
b) waht to do/ helplines etc for people who have difficulty paying ( with the details of say CCCS/ CAB/ national debtline etc

Essentail repairs to a owned property for the vulnerable and low income ( eg elderly single parents. disabled poorly employed) can be undertaken after assessment by a partnership service from your local authority - in tandem with organisations like "staying put" This might be an option for some too.

this would help square the ethical circle.

Clearly these options wont work for everyone just suggestions to ease your conscience Tass

Tassotti

That's a very well thought through post Lynz.

You are truely a PURE MONEYSAVER.

With regards to your suggestion about advertising:-

Why not just say

"There are other options and if you wan't to take them, do so and put us out of business...we will become one of you"

At the end of the day, anyone offering a 'helpful' service is in it for themselves.

Not sure I can convince some people of the benefits of a moneylender on a forum like this, but have been encouraged by the previous posts.

I will admit that we do encourage good payers to refinance , but, still, affordability is taken into account. No agent will 'force' loans on people.

Tass

ASG_2

Tassotti wrote:

@beanilou : credit unions require a potenitial borrower to SAVE money before borrowing.....Shut up



Tass

Not all credit unions require you to save before you can borrow. Although the law changed earlier this year to allow cu's to charge upto 2% per month (25.36%APR) not all of them have upped their rates.

Tassotti

Hi pru

I suspect you are right. No one knows my business as well as I do.
However, see my previous post.

I am not a heartless !!!!!!.

I notice there are a few agents on this forum.

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Xbigman

And the only person thanked in this thread was the one who ignored the topic and brought in credit unions.
Regards



X

Icemoose

I used Provident once..... I hated the woman who collected I nicknamed her the Dwarf!

Eventually I stopped paying because I could not stand her calling at my house each week, I offer repayments by Direct Debit but they didn't want that....

Just as it was about to go to court my parents bailed me out and she was paid off in full...

I have written to Provident 4 times in 6 months to ask them to remove my details from there mailing list and to stop sending letters offering loans but they have not. Letter 5 was sent last week threating them with legal action if they didn't stop.

I've had 4 letters this month offering me £500 - £1000!

I always advise people who are desperate to try and get a Crisis Loan from the DSS which are avalible to all.... and it's intrest free.

I am working fulltime but I got one recently for a new fridge and they paid out in 5 days!