Unbelievable!

Woodywizz · 22-09-2008, 7:07 PM

Was just on Facebook and saw an advert which I couldn't quite believe.

CLICKY

Look at the typical apr

Now, I'm a bank manager - but to me that is just plain scandalous and just goes to prove what robbing ***** some companies are. How to take advantage of the credit crunch...I am appalled.

**Steven** · 22-09-2008, 7:09 PM

I have been incredulous at banks that increase overdrafts to students with no viable means of repaying the money. I know friends with multiple overdrafts... everybody is sinking together...

Mr_Wistles · 22-09-2008, 7:11 PM

Looks like it is being run out of a flat also.

wormvortex · 22-09-2008, 7:13 PM

damn suddenly my credit cards 16.9% seems good

Suppose rates of 400+% are what you gotta face if you ruin your credit report.

Woodywizz · 22-09-2008, 7:13 PM

Quote:

Originally Posted by LFC_SL

I have been incredulous at banks that increase overdrafts to students with no viable means of repaying the money. I know friends with multiple overdrafts... everybody is sinking together...

But banks see students as a good bet...you are, after all, the professionals of tomorrow. Given that the average student overdraft is interest free then I do not see that as a problem. What is a problem is companies like the aforementioned taking advantage of people with poor credit and charging them 400%+ apr.....it is these sharks which exacerbate the problem.

**Iccz** · 22-09-2008, 7:15 PM

That's ridiculous.

I thought APR's so high were illegal?

Perceval · 22-09-2008, 7:19 PM

There was a case recently where a Welsh loan shark was jailed for charging...........

149000% interest

makes the above look like a bargain.

http://news.bbc.co.uk/1/hi/wales/7621251.stm

**Steven** · 22-09-2008, 7:23 PM

Quote:

Originally Posted by Woodywizz

But banks see students as a good bet...you are, after all, the professionals of tomorrow. Given that the average student overdraft is interest free then I do not see that as a problem. What is a problem is companies like the aforementioned taking advantage of people with poor credit and charging them 400%+ apr.....it is these sharks which exacerbate the problem.

True, but if somebody is in straits that dire to have to resort to such a loan would have meant their bank was not helping them

As I said, we are all sinking

JagoPlasma · 22-09-2008, 7:51 PM

well if you are a good bank manager then you are probably as ruthless as they are. if your not then you should be fired

had to say the idea of getting a loan from them is pretty tempting. as they dont do credit checks it would be so easy to fake who you are. and if they ever did catch up with you then take them to court for irresponsible lending. (isnt "no credit check" seriously frowned upon by the courts?)

only downside is you will prob have to go to court with no kneecaps

... i guess it may strengthen your case

GBDG1 · 22-09-2008, 8:50 PM

Quote:

Originally Posted by JagoPlasma

had to say the idea of getting a loan from them is pretty tempting. as they dont do credit checks it would be so easy to fake who you are. and if they ever did catch up with you then take them to court for irresponsible lending. (isnt "no credit check" seriously frowned upon by the courts?)

They just take your car.

Look at this company

"Depending on the loan term, typical APRs will range from 1351.7% to 9889.3%."

http://www.quickquid.co.uk/fee-schedule.html

**Kieron** · 22-09-2008, 9:25 PM

This "logbook loan" type firm tend to work out of places like "Cash Converters" etc. I bet most "pawn" shops are of a similar APR - as unbelievable as may be.

Quote:

Originally Posted by JagoPlasma

well if you are a good bank manager then you are probably as ruthless as they are. if your not then you should be fired

I think he'd be fired if he did offer such irresponsible lending. I'd rather deal with a loan from Matt than these unscrupulous individuals....

mrapbp · 23-09-2008, 12:39 AM

I have noticed a trend in Swindon towards more and more of these kinds of places. The town is now full of pay day advance loan places and places like Brighthouse etc.

I know Swindon is a Pikey craphole but its getting out of hand!!

Bill Hicks · 23-09-2008, 1:17 AM

It's political correctness gone mad! We're all going to hell in a handcart!

Oh sorry, wrong thread!

Desmo · 23-09-2008, 7:19 AM

Quote:

Originally Posted by Woodywizz

Now, I'm a bank manager - but to me that is just plain scandalous and just goes to prove what robbing ***** some companies are. How to take advantage of the credit crunch...I am appalled.

Was this thread created just to try and make your employer look better?

C225 · 23-09-2008, 7:22 AM

Quote:

Originally Posted by LFC_SL

I have been incredulous at banks that increase overdrafts to students with no viable means of repaying the money. I know friends with multiple overdrafts... everybody is sinking together...

Thats why i'm doing the course i am with a year in industry as you get great experiance and a pay

. By the end of the year i expect to have paid off all of my previous loans and over drafts and have enough for my final year at uni.

I only wish i got a job in america like one of my pals. His pay for the year is $45,000

Ian J · 23-09-2008, 8:21 AM

In general I think that "payday loans" serve a useful purpose and the interest rates will always be high because the risk is also very high but I am talking about the £100 loan to get the washing machine repaired or similar.

Bilbob · 23-09-2008, 9:48 AM

Was going to say that these 'payday loans' cannot be compared to 'normal' loans. The fact is that these loans are only meant for a short period, often a week, or a few days. If traditional APR's were applied, then the lender would be making pennies in profit,it wouldn't be worth it and they wouldn't exist.

Now you MAY argue whether they should exist or not, but you cannot knock the APR's when you are not comparing like for like. These loans are not meant to be taken out for months or years.

And no, I don't work for one, and have never taken one either! But I can see their use.

Mr_E · 23-09-2008, 11:36 AM

Quote:

Originally Posted by Iccz

That's ridiculous.

I thought APR's so high were illegal?

Nothing illegal about stupid APR as long as it's clearly stated.
You'd need to be insane to consider taking a loan from those boys though.

However, a lot of people are idiots.

Pecker · 23-09-2008, 12:09 PM

Where are all the usual suspects telling us the city should be unregulated, banks free to follow the market, and that anyone who disagress is a communist?

This is a prime example of why we need a mixed economy. The free market yes, but with checks and balances applied by law.

This is just sickening.

Steve W

Ed Selley · 23-09-2008, 12:21 PM

Quote:

Originally Posted by Pecker

Where are all the usual suspects telling us the city should be unregulated, banks free to follow the market, and that anyone who disagress is a communist?

This is a prime example of why we need a mixed economy. The free market yes, but with checks and balances applied by law.

This is just sickening.

Steve W

Why? The banks are in trouble in part because they were until recently lending to high risk individuals. This has come home to roost and they won't touch them. Therefore these organisations fill the gap.

Would I want to pay it? no. Do I believe the service needs to exist in extremis ? Yes. The last thing I want is either our sickly banks or heavily overborrowed government putting more capital at risk.

Ian J · 23-09-2008, 12:33 PM

Quote:

Originally Posted by Pecker

Where are all the usual suspects telling us the city should be unregulated, banks free to follow the market, and that anyone who disagress is a communist?

This is a prime example of why we need a mixed economy. The free market yes, but with checks and balances applied by law.

This is just sickening.

I don't find it sickening at all. The advert clearly states what is on offer and how much it will cost. There is no attempt to kid someone into believing that it is something that it is not so I don't see anything wrong with it.

aphex232 · 23-09-2008, 1:09 PM

Quote:

Originally Posted by Mr_E

Nothing illegal about stupid APR as long as it's clearly stated.
You'd need to be insane to consider taking a loan from those boys though.

However, a lot of people are idiots.

or not....theres people who i work with who take loans and have no intention of paying them back! will they getaway with it? id like to think they wouldnt, but with this government they probably will

**Iccz** · 23-09-2008, 1:38 PM

Quote:

Originally Posted by Ian J

I don't find it sickening at all. The advert clearly states what is on offer and how much it will cost. There is no attempt to kid someone into believing that it is something that it is not so I don't see anything wrong with it.

I agree, but they are clearly taking advantage of a bad situations when people have few places to turn to help them, instead of getting real help they just end up making things worse by using companies like these.
Sure it's stupid to take something like this up, but some people don't think before they take a loan out they just see it as a way of getting quick cash to try patch something else over.

I think morally offering such deals is wrong, someone desperate enough to take that obviously has problems, or they're just stupid.

I see both sides of the argument and agree with both, it's not wrong in the sense its advertising it 'as is' wether that's a fair price or morally right how they qualify people for it, it's not their problem, well until the payment isn't made back...

Ian J · 23-09-2008, 1:42 PM

Quote:

Originally Posted by Iccz

Sure it's stupid to take something like this up, but some people don't think before they take a loan out they just see it as a way of getting quick cash to try patch something else over.

I think morally offering such deals is wrong, someone desperate enough to take that obviously has problems, or they're just stupid.

It's also stupid to take up drinking and smoking and many other things beside but society allows people to make up their own minds whether or not to do stupid things like that.

**Iccz** · 23-09-2008, 1:45 PM

Quote:

Originally Posted by Ian J

It's also stupid to take up drinking and smoking and many other things beside but society allows people to make up their own minds whether or not to do stupid things like that.

I couldn't agree more, but it's just proof some people don't have the same ability to hold back from things than others, and that some people are more vulnerable to getting shafted by these companies than others, be it fault of their own or generally not knowing what they're getting into.

Pecker · 23-09-2008, 1:59 PM

Quote:

Originally Posted by Ian J

I don't see anything wrong with it.

Some people are educationally sub-normal. Not stupid (as in no common sense), just not all that bright.

Other people might be old and a little senile, or perhaps in absolutely desperate circumstances and not thinking straight.

The law should be there to protect the very weakest society in these circumstances.

Steve W

Squiffy · 23-09-2008, 2:05 PM

Quote:

Originally Posted by Pecker

The law should be there to protect the very weakest society in these circumstances.

So how would that work? IQ and medical tests before you can apply for a loan?

Pecker · 23-09-2008, 2:22 PM

Quote:

Originally Posted by Squiffy

So how would that work? IQ and medical tests before you can apply for a loan?

No, responsible lending limits.

Steve W

Ed Selley · 23-09-2008, 2:33 PM

Quote:

Originally Posted by Pecker

No, responsible lending limits.

Steve W

But again- in the original example, the sum loaned is £1500 which is not outrageous. If you are suggesting a cap on the APR, the result is to make any additional money impossible to secure for the most disadvantaged as nobody will loan to them at all.

Squiffy · 23-09-2008, 2:35 PM

Quote:

Originally Posted by Pecker

No, responsible lending limits.

So how would setting a limit on how much could be loaned protect the dim, old or senile, and not penalise everyone else who was bright, young and non-senile enough to take on a commitment such as this type of loan?