Halifax 'Aqua' Card Rip-off 35.9% apr !

lou_martin

Yesterday I received some junk mail in the post addressed to me inviting me to apply for an 'Aqua' card. I was disgusted to see that their typical interest rate for purchases and balance transfers is a whopping 35.9%!!!!

How on earth do credit card companies get away with charging these extortionate rates?! I think there should be serious limitations for how much they should be able to charge, i'm not that stupid but there are plenty of desperate people out there who would take them up on their offer and then suffer the consequences for years to come.

After reading the small print it turns out the Aqua card is part of SAV Credit Ltd which is issued by Halifax Plc.

Willsnarf1983

because unfortuantly some people feel there is no other choice aailable for them, i think its a disgrace, there should be some sort of interest charge capping system

but hey ho whilst people feel desperate enough these cards will continue

Will

grumbler

lou_martin wrote:

How on earth do credit card companies get away with charging these extortionate rates?! I think there should be serious limitations for how much they should be able to charge

This was discussed recently in 'Great Champagne 'highest Apr' Credit Card Hunt! ' thread...

MarkyMarkD

Yep, good idea wills. Cap interest rates, and encourage people to borrow money from illegal loan sharks instead. That'll improve the lot of the poor :S

mark_jones13

Its called rate for risk. If people paid their debt off on time in the first instance then they wouldn't need a card like this. I understand that it is never that simple though and the rates just reflect the extra risk that companies take when accepting a bad payer.

CTT_2

I was offered one of their micky mouse Aqua cards and was amazed they should market me with this crap card. especially when my credit rating is excellent and have the very best of the credit card deals around. Then I noticed that Halifax the crap bank were behind it and to me this spoke volumes. Why didnt they just stick to cementing bricks for houses and leave the serious players in the market to offer decent cards.

skylight

I got one too yesterday!

It amazes me - we are in negotiations with our other creditors and one has issued a default notice too. (Who is surprisingly the Halifax!) And still, people want to lend us money!

So after I fell on the floor laughing at mine, it got shredded.

Mind you, the card is a pretty colour and it does match my purse............

Willsnarf1983

MarkyMarkD wrote:

Yep, good idea wills. Cap interest rates, and encourage people to borrow money from illegal loan sharks instead. That'll improve the lot of the poor :S

If these people are needing to borrow on these credit cards because they have a poor rating they are just as likely going to have to borrow from loan sharks in the end!!!!

capping the interest will not make it more likely that people will borrow from loan sharks

Will

grumbler

Willsnarf1983 wrote:

...capping the interest will not make it more likely that people will borrow from loan sharks...

No, it will - because nobody will give them a card with low (capped) interes rate.
And loan sharks charge much more than 40%. What about 180%+?

'Should a Passport ever be given for a loan? ' recent thread.

Willsnarf1983

grumbler wrote:

No, it will - because nobody will give them a card with low (capped) interes rate.
And loan sharks charge much more than 40%. What about 180%+?

'Should a Passport ever be given for a loan? ' recent thread.

very compelling reading and i feel for the OP, what i am trying to get across though is that the people that feel the need to use a card with such high interest are nearly as likely going to go to a loan shark in the long run, i ahve no proof just a thought and if i can be proven wrong then i will be glad. If there was a capping system then it would a) stop people being silly with money or getting into AS much trouble as the can with the 40% card or b) get them to the loan shark stage earlier instead of prolonging it and thus ending up with alot more debt. It would hopefully make the lenders have a bit more responsibility in their lending.

just a thought...

Will

MarkyMarkD

Grumbler's quite right, which was my point. If rates are capped for legitimate lenders, they just won't lend to bad quality risks like these. So, as you say (reiterating what I said) they'll get pushed into the hands of loan sharks sooner, rather than later.

The idea that being with loan sharks will mean they get out of debt quicker, is a rather strange one. Most loan sharks are very happy to keep their customers in just enough debt that they keep on paying ... but can never quite manage to pay the debt off.

Capping rates WOULD make lenders more responsible in their lending, if you consider responsibility to mean saying no to people who have worse credit histories. I would consider that restriction of individuals' right to make their own decisions about borrowing.