Typical 343.4% APR

#2
FCUK ME! I thought this was a wind up...but it`s not! Are people really that desperate! It`s frightening.
 
#3
Nope! Not a wind up and they advertise in all the assorted Forces mags…
 
#5
Is legal as they have printed the rate but is it moral? Especially as they appear to be in magazines aimed at the military.
 
#7
I may be missing something here, but if you take £215 (Commitment fee) from the total repayable (£3120) and average out over 52 weeks then annual repayment is £2604 and you get total APR of about 74%. Still outrageous, but nowhere near 343.4%, unless my sums are wrong.
 
#8
Blimey! So that's where Gordon Brown got his loan from :lol:

The NHS will pay private companies £53bn for private finance initiative hospitals worth only £8bn, the Conservatives have revealed.
The figures emerged in a response to a Parliamentary Question tabled by Shadow Health Secretary Andrew Lansley.
PFI schemes 'to cost NHS £53bn'
 
#9
mnairb said:
I may be missing something here, but if you take £215 (Commitment fee) from the total repayable (£3120) and average out over 52 weeks then annual repayment is £2604 and you get total APR of about 74%. Still outrageous, but nowhere near 343.4%, unless my sums are wrong.

Methinks the sums may be off… they may be compounding the interest daily and that makes a loan VERY expensive.

All in all, they seem pretty nasty people…

http://www.consumeractiongroup.co.u...s-manufacturers/25749-log-book-loans-can.html
 
#10
 
#11
Not at all nasty - they can shove whatever rate they like on, as they have quite clearly posted the rate.

If someone's stupid enough to take such a loan, they deserve to be hit with a shovel. Repeatedly.
 
#12
According to my sums, using the amount shown in the advert.

£1500 borrowed, paid back at £53.80 for 58 weeks, you pay back £3120.40.

An increase of 208% and a profit margin for them of quite a fair amount me thinks.

Legal maybe, but shocking never the less.
 
#13
Yes, if I could get a guaranteed 100% profit return in a year on capital, I'd be a very happy bunny. However, the overheads must be high - leg breaking gorillas to collect the installments do not come cheap. However, if you are mug enough to sign up (and we all know people that are), you deserve all you get.
 
#14
I think you will find that all the comercial organisations that lend to people with poor credit histories charge high rates of interest though not many will advertised their worst case as this lot do. Why do they charge such high rates, well their customers have already demonstrated their ability to default on their loans in the past so it is fairly likely that a good proportion of their customers will default, the high rate of interest covers the fact that their chances of getting any cash from defaulters is low.

Many of their competitors show much more advantageous rates in their adverts and note that rates vary according to circumstances, covering themselves for the higher rate when you get a quote.

The best bet for most people with a bad credit history is a credit union
 
#15
mnairb said:
However, the overheads must be high - leg breaking gorillas to collect the installments do not come cheap..

I wonder if they advertise in Globe & Laurel? Potential for rent-a-thugs to come badly unstuck. :wink:
 
#16
This sounds like a company that's trying to get their hooks into one of my lads at the moment.
Provident Personal Credit www.providentpersonalcredit.com. Every couple of weeks he gets another offer for a loan at a stupid APR. The last one was for 177% and when you look on their website the example is even higher.

Thankfully, he's got the sense to shred these things without even thinking about them but I can understand why some of the poorest people in society fall for their crap when they see that can repay as little as £9 a week (and someone will helpfully pop round and collect it from them :roll: ).

I thought that loansharks etc... are illegal, but I suppose as long as they tell people up front that they're going to have the shirt off their back then that makes it alright.

At least Dick Turpin wore a mask!!! :evil:
 
#17
Oil_Slick said:
they advertise in all the assorted Forces mags…
That's outrageous. Why can't someone start a credit union for Forces personnel? If it can be done on a Welsh council estate to bollock the loansharks in can be done in a NAFFI.

Example:

Trustee Manon Davies is trying to get more people to turn away from the lending from loan sharks and join the credit union.

She says a £100 loan from the credit union would cost £3 interest over a 20-week period, whereas a loan from the Provident firm would cost £47 in interest.

The credit union is also lobbying for extra funds to try to redeem existing high-interest loans and break the cycle of borrowing

http://news.bbc.co.uk/1/hi/wales/3435979.stm
 
#18
annakey said:
Oil_Slick said:
they advertise in all the assorted Forces mags…
That's outrageous. Why can't someone start a credit union for Forces personnel? If it can be done on a Welsh council estate to bollock the loansharks in can be done in a NAFFI.

Example:

Trustee Manon Davies is trying to get more people to turn away from the lending from loan sharks and join the credit union.

She says a £100 loan from the credit union would cost £3 interest over a 20-week period, whereas a loan from the Provident firm would cost £47 in interest.

The credit union is also lobbying for extra funds to try to redeem existing high-interest loans and break the cycle of borrowing

http://news.bbc.co.uk/1/hi/wales/3435979.stm
I agree that credit unions can be a very good solution, but of course the MOD is in hock to the likes of 'Forces Finacial' etc
 
#19
maxi_77 said:
annakey said:
Oil_Slick said:
they advertise in all the assorted Forces mags…
That's outrageous. Why can't someone start a credit union for Forces personnel? If it can be done on a Welsh council estate to bollock the loansharks in can be done in a NAFFI.

Example:

Trustee Manon Davies is trying to get more people to turn away from the lending from loan sharks and join the credit union.

She says a £100 loan from the credit union would cost £3 interest over a 20-week period, whereas a loan from the Provident firm would cost £47 in interest.

The credit union is also lobbying for extra funds to try to redeem existing high-interest loans and break the cycle of borrowing

http://news.bbc.co.uk/1/hi/wales/3435979.stm
I agree that credit unions can be a very good solution, but of course the MOD is in hock to the likes of 'Forces Finacial' etc
It just seems a bit much that someone being shot at should also have to worry about a loan shark chasing his family at home for a 343.4% interest payment. But maybe I'm being a wet liberal...
 
#20
annakey said:
It just seems a bit much that someone being shot at should also have to worry about a loan shark chasing his family at home for a 343.4% interest payment. But maybe I'm being a wet liberal...
No I don't think you are being a wet liberal, even more to the point if I was being shot at I would be a lot happier if the guy covering my back didn't have to worry about being ripped of in that manner and could concentrate on covering me.

I am quite sure it is not outwith the wit of man to set up a proper Forces Credit Union to protect the vulnerable from these vultures.
 

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