Simplybe charges

_pony_l

How can they get away with charging 69.9 percent interest rate, absolutely crazy. There should be some sort of law that they cant charge charge way over the top interest rate .

fatbelly

I guess most of their customers don't care/don't understand

I would never use credit at that rate but plenty of people do. Doorstep lenders would charge 200-300% and payday lenders maybe 2000%, in the good old days.

MEM62

By the time you are in the realm of 69% interest rates you know that the mainstream lenders won't lend to you anymore.  Rather than legislating interest rates, it would be far more useful for individuals to wake up to the fact that this is the point at which they should stop borrowing.      

Ebe_Scrooge

There is no reason why any lender can't charge whatever rates they wish - there's nothing to force you to use them.  If you're unable to obtain credit with a more mainstream lender, perhaps you should stop using credit.

And anyway, if there were legislation to place a cap on the APR that can be charged, this would potentially result in a lot more people borrowing money from that well-known East-End company The Kneecap Brothers.  They will lend to anyone - but you'd better be damned sure you never miss a repayment.

sourcrates

There not getting away with anything, they are providing goods, at a specific price and rate of interest, defined by risk, its clearly displayed what you will pay.

Its up to the individual to decide if they want to pay what is being asked, or not.

Acceptance criteria for catalogue accounts has always traditionally being at a low bar, in order to attract the kind of customer who would be unable to obtain mainstream credit.

Simply be goods can be bought over 3 months interest free, and there usual rate of interest is 29.9%APR so I don`t know where you get 69.9% from ?

TripleH

The rates are high because Simply Be borrow from elsewhere and pay interest on that.

The issue is that the money they borrow has to be paid back, that's fine when everyone pays, but when people don't, they still have to finance their loans. The extra interest you pay goes towards covering the couple at no.46 who don't pay.

The higher the likelihood of default, the higher the interest charged to cover operation costs. (Simplified version).