Loans targeting teens/students/those with debts.

Mrs_Arcanum

I was appalled to see a letter to my daughter from Provident Personal Credit offering cash loans for £100 to £500 (representative 399.7 APR :eek:). She got her first proper pay slip last week and is planning on University in September.

Fortunately she has a good MSE head on her shoulders so will not be taking them up on their outrageous offer.

However, this sort of marketing could catch the unwary out especially as it mentions all the usual reasons for being turned down are likely to be accepted.

One to add to Martin's list perhaps?

CKhalvashi

Provident have been around for years, and this is nothing new.

Whether I think they should be banned, and whether they're a properly licensed company that won't break peoples legs if they don't pay are two different ways of looking at it, and if absolutely necessary, it's better for people to use these guys than someone who will, surely?

Mrs_Arcanum

CKhalvashi wrote: »

Provident have been around for years, and this is nothing new.

Whether I think they should be banned, and whether they're a properly licensed company that won't break peoples legs if they don't pay are two different ways of looking at it, and if absolutely necessary, it's better for people to use these guys than someone who will, surely?

My main issue is targeting 18 year olds who are already facing a huge debt which confusingly may never be paid back.

CKhalvashi

Mrs_Arcanum wrote: »

My main issue is targeting 18 year olds who are already facing a huge debt which confusingly may never be paid back.

IMO, the student loans system should not be viewed as debt, but as a 'graduate tax.'

In fact, a career average of something like £80k is needed to pay the 'loan' back in full, which really emphasises the point.

Provident have probably asked a company for data on people whose credit profile hits the criteria they wish to lend to, which as you're probably aware is those with little/bad credit history.

An advert doesn't need to be acted on.

Not saying it's morally right (on the morals I agree with you), but legally, that is the case.

Much better to get an Aqua/Cap1/Vanquis card and pay in full each month, but that's life.

Mrs_Arcanum

CKhalvashi wrote: »

IMO, the student loans system should not be viewed as debt, but as a 'graduate tax.'

In fact, a career average of something like £80k is needed to pay the 'loan' back in full, which really emphasises the point.

Provident have probably asked a company for data on people whose credit profile hits the criteria they wish to lend to, which as you're probably aware is those with little/bad credit history.

An advert doesn't need to be acted on.

Not saying it's morally right (on the morals I agree with you), but legally, that is the case.

Much better to get an Aqua/Cap1/Vanquis card and pay in full each month, but that's life.

As you can see from my sig, I have been down the bad debt route and really do not want my children to go the same way.