The NEW Provident Visa Card

Zebedee69

Im not going to knock provident at all. They offer options to parts of society that to be honest dont realy have any. Life is harsh once you fall through that mainstream net and many people depend on the provi for a reasonable living standard.

If provident went bust tommorow there would be many a low income family next christmas without a tree let alone presents!

I worked in Brighthouse once and id say 95% of people who shop there would never cope with the complex nature of mainstream credit cards, loans, mortgages or overdrafts due to lack of education (Reading, Writing, Maths) and their outlook on life in general.

Therefore companies like the Provi or Brighthouse offer simple, easy to understand solutions and as they dont lend too much people never get into bad debt. Its easy for MSE's to look at the APR but many Provi or Brighthouse customers wouldnt know what APR was anyway or have the skills to do the math........ Its far easier to say this costs £5 per week than to say 149% APR.

The simple truth is these companies provide a lifeline for those who the likes of Egg, American Express, MBNA and all the banks would laugh at..... before giving them a Solo card.

Here's another thought, the way society works both here and in most developed countries is that once you fall through "the net" no one wants to touch you. People believe they are being helpful calling for companies that offer products for these "vunerable" people to be banned, however what your doing in effect is withdrawing even more facilities for these people. If this happened you could end up with a real 3rd world system where you have people who have and people who are left hungry on the streets.

Its sad but thats the system we have to work with..............

UK007BullDog

Zebedee69 wrote: »

I worked in Brighthouse once and id say 95% of people who shop there would never cope with the complex nature of mainstream credit cards, loans, mortgages or overdrafts due to lack of education (Reading, Writing, Maths) and their outlook on life in general.

Therefore companies like the Provi or Brighthouse offer simple, easy to understand solutions and as they dont lend too much people never get into bad debt. Its easy for MSE's to look at the APR but many Provi or Brighthouse customers wouldnt know what APR was anyway or have the skills to do the math........ Its far easier to say this costs £5 per week than to say 149% APR.

Understand what you are saying, however I get a lot of customers in who are in a worse situation because of brighthouse and co. I see people paying £5 for months or actually to be more realistic I see people paying around £50 and more per month for years and years for some TV or washing machine which has been paid off like 5 times over. I think that is a ripoff and people like that need to be protected. I dont mind hire purchase schemes but they have to be fair and not just how much profit can be squeezed out of a person.

Hence I feel the FSA should look at it as the customer is "not treated fairly".

Trinian you might think I am wrong or you might laugh at me but I feel that the vulnerable customers are being taken for a ride. An expensive ride!

Each time I work out for the customers how much they actually paid for their TV they are shocked and feel angry and used. :mad: And rightly so!

I also do not agree with tiered interest rates for loans and credit cards. Top earners get cheaper new loans, new CC's and new mortgage rates. To hit someone who is on their knees with higher rates is just not right as it makes it even harder for them to get back on their feet. Wanna bash me on that? LOL. :rotfl:

CannyJock

Zebedee69 wrote: »

I worked in Brighthouse once and id say 95% of people who shop there would never cope with the complex nature of mainstream credit cards, loans, mortgages or overdrafts ...

Yup, it can be confusing, especially to explain how 6% over 20 years costs you more than 12% over 10 years.

That's why the best thing to highlight is the TOTAL AMOUNT TO REPAY.

I've spent years in sales, and when you're selling you're always talking up the small numbers e.g. for only 1% per month, only £ 5 per week, less than the cost of a daily newspaper. And you also bring out the pain involved in them not having whatever your selling. Like to think on myself now as poacher turned game keeper

We should be encouraging people to look at two things:
1. total amount they need to pay back and what else would they be able to do with that money?
2. do they really need it in the first place? how long would it take them to save the money and how they can do without it until then even if it means a level of hardship

mrmajika

UK007BullDog wrote: »

I also do not agree with tiered interest rates for loans and credit cards. Top earners get cheaper new loans, new CC's and new mortgage rates. To hit someone who is on their knees with higher rates is just not right as it makes it even harder for them to get back on their feet. Wanna bash me on that? LOL. :rotfl:

Yes.
The business of lending has to be tangible and quantifiable. Therefore it is necessary to group individuals based on their past behaviour (in other words 'credit history').

A customer who has a long established bank account, several well paid cards and loans is far less likely to bounce payments or declare bankrupt and so is far less risk to the lender. This 'group' causes the lender very little bad debt and so losses are minimised, hence the best rates.

At the other extreme, a customer who is poor with money management and has existing borrowing is far more likely to be unable to pay and then enter and IVA or declare bankrupt. Therefore the rates offered to this group are higher to compensate for the higher level of bad and unpaid debt that this group bring. It's all about profit and offsetting risk.

Wanna bash me on that? LOL. :beer:

Zebedee69

Also you can add Brighthouse and Provi to this one:

I always remembered the accountant at Brighthouse used to make his rounds each week to collect those who never pay! This incured about 10-15 hours a week not to mention letters sent out and everything.

29.9% Is to pay for this.............. If you forced them to offer 9.9% they would quickly be out of business due to chasing debt.

I know its harsh but they are higher risk than your average 0% intro offer guy with a great track record.

rog2

Have just seen this thread, and whilst I do not wish to get into any argument about the 'service' that Provident provide, albeit at a very high cost, in the sub-prime lending sector, I would just like to say that there really is nothing 'new' about this card - Provident have been offering the 'Vanquis' credit card (apr 66+%) for many years. Seems they have now 'combined' it with their loan business in order to make even more money from those who can least afford it.

Tirian

Seems like you didn't actually look to see what the product was mate. It's not the Vanquis credit card at all. It is a prepaid card, which entirely different from a credit card - and as such it is new, since AFAIK they've never offered a prepaid card before now.

rog2

Tirian wrote: »

Seems like you didn't actually look to see what the product was mate. It's not the Vanquis credit card at all. It is a prepaid card, which entirely different from a credit card - and as such it is new, since AFAIK they've never offered a prepaid card before now.

Why so abusive, Tirian? I am PERFECTLY aware what a pre-paid credit card is, as I use one myself. Vanquis is a 'Credit Card' issued by Provident and Provident have seen an opportunity to make even more money through this 'new' card.
And, please, do not tell me that I did not look to see what the product was - the first thing that I did was to click on the link.

boredofbeingathome

JF77 wrote: »

Interesting thread. I grew up in the knowledge of what my mum referred to as Provi cheque's. She would get dead excited about receiving them as it meant we could all have a better christmas and yes, I believe it was the weekly amount that she would pay back that interested her most being a single parent on low income and not the total amount payable. Having no bank account meant this was really her only option and without it she would have struggled. Oh and I only remember having to hide behind the sofa a couple of times when the provi man knocked at the door lol!

You must have lived in our neighborhood then, we took it in turns hiding from Provi and the D.E.R. TV rental man. Depending on when dad was paid, we also used to answer door for mum and would not let them in or tell them our ages- apparently he could come in and take telly back if we were 16.:rolleyes: No one thought anything of it though because we were all in the same position.I wouldn't get one of the cards though.

boredofbeingathome

UK007BullDog wrote: »

Understand what you are saying, however I get a lot of customers in who are in a worse situation because of brighthouse and co. I see people paying £5 for months or actually to be more realistic I see people paying around £50 and more per month for years and years for some TV or washing machine which has been paid off like 5 times over. I think that is a ripoff and people like that need to be protected. I dont mind hire purchase schemes but they have to be fair and not just how much profit can be squeezed out of a person.

Hence I feel the FSA should look at it as the customer is "not treated fairly".

Trinian you might think I am wrong or you might laugh at me but I feel that the vulnerable customers are being taken for a ride. An expensive ride!

Each time I work out for the customers how much they actually paid for their TV they are shocked and feel angry and used. :mad: And rightly so!

I also do not agree with tiered interest rates for loans and credit cards. Top earners get cheaper new loans, new CC's and new mortgage rates. To hit someone who is on their knees with higher rates is just not right as it makes it even harder for them to get back on their feet. Wanna bash me on that? LOL. :rotfl:

I think you make some very valid points about vulnerable customer's being hit in their pockets long term. I have an old neighborhood friend of the family who comes to me for help filling forms in etc. I wouldn't dream of betraying her trust in me, but sometimes i want to scream at some companies for the way they treat her. She has what she refers to as a 'viser card' with one of these companies and is happy to get goods for it for family and grandchildren. she has numerous loans with the various door knockers and seems to accept that she will be paying for the rest of her life in one form or another. I suggest different things for her, but as another poster pointed out, she is happy to sign up unquestioningly for their products and for her it is the only option. She is a lovely person, has a heart of gold and i wish i could lead her out of it all,