Loans at 2689% APR

[Ken Moss]

My wife and I have nearly just choked on a wonderful cooked breakfast at Rishton Towers after seeing an advert for loans at 2689% APR. Another one followed shortly afterwards at much the same rate.

Surely it's time for a bit of government intervention to stop scams like this?

Discuss.

[garinda]

I've seen the adverts.

They make it all seem very user friendly, as a short term loan, until they are forced to give the APR.

Probably worth finding out how much your local, unoffical Mrs. Shylock is charging first, before signing up for anything.

[flashy]

Originally Posted by Ken Moss

Discuss.

since when have we on Accyweb needed prompting to discuss things?

tis a discussion forum Mossy....take note

[garinda]

Originally Posted by flashy

since when have we on Accyweb needed prompting to discuss things?

tis a discussion forum Mossy....take note

Oi!

Stop talking, and don't turn your paper over, until he tells you to.

[flashy]

Originally Posted by garinda

Oi!

Stop talking, and don't turn your paper over, until he tells you to.

yes sir

[jaysay]

Originally Posted by Ken Moss

My wife and I have nearly just choked on a wonderful cooked breakfast at Rishton Towers after seeing an advert for loans at 2689% APR. Another one followed shortly afterwards at much the same rate.

Surely it's time for a bit of government intervention to stop scams like this?

Discuss.

Not to worry Ken I'll give you a lone and I'll only charge you 250% APR

[Margaret Pilkington]

The very high Annual Percentage Rate is purely because the loans are short term.
You really wouldn't borrow on a long term loan with rates like that.......personally, I try very hard not to borrow any money from anyone.

[jaysay]

Originally Posted by Margaret Pilkington

The very high Annual Percentage Rate is purely because the loans are short term.
You really wouldn't borrow on a long term loan with rates like that.......personally, I try very hard not to borrow any money from anyone.

Same here Margaret, I've never had any debt (except a mortgage) never had HP, have always saved up until I could afford whatever I wanted, I always pay off my credit card in full every month, if I use it, took notice of my mother who did exactly the same

[gynn]

Originally Posted by Margaret Pilkington

The very high Annual Percentage Rate is purely because the loans are short term.
You really wouldn't borrow on a long term loan with rates like that.......personally, I try very hard not to borrow any money from anyone.

Its nothing new. My late dad told me about the moneylender on his street, who used to lend hard-up neighbours 3 half crowns on a Monday, to be paid back as ten bob on payday on a Friday. That works out as an APR of 3,041%. It made him determined never to borrow money, and as far as I know, he never did, other than his mortgage. With one or two blips, I've generally managed to follow suit!

As well as dealing with loan sharks, the government should also look at how easy it is for people to run up debts. Retailers are too ready to give credit if it boosts sales.

[jaysay]

Originally Posted by gynn

Its nothing new. My late dad told me about the moneylender on his street, who used to lend hard-up neighbours 3 half crowns on a Monday, to be paid back as ten bob on payday on a Friday. That works out as an APR of 3,041%. It made him determined never to borrow money, and as far as I know, he never did, other than his mortgage. With one or two blips, I've generally managed to follow suit!

As well as dealing with loan sharks, the government should also look at how easy it is for people to run up debts. Retailers are too ready to give credit if it boosts sales.

Reading your tale about your Father gynn, reminds me of a guy who used to frequent my local, he was on the dole. He came up to me one day and asked cold I lend hi a couple of quid until he got his Giro, I gave him two pound coins, the day he got the Giro, the first thing he did that night was gave me back the two quid, the only thing was this became a regular thing every week in fact until one day he came to give me back the 2 quid and I said no you keep it then you'll never need to ask me again, he never did

[Vicbfc]

Originally Posted by Ken Moss

My wife and I have nearly just choked on a wonderful cooked breakfast at Rishton Towers after seeing an advert for loans at 2689% APR. Another one followed shortly afterwards at much the same rate.

Surely it's time for a bit of government intervention to stop scams like this?

Discuss.

I agree with you, it's scandalous.

It's just making money out of vulnerable people.

Same as Brighthouse shops, the French Government banned them.

They should simple be banned

[Vicbfc]

Originally Posted by jaysay

Same here Margaret, I've never had any debt (except a mortgage) never had HP, have always saved up until I could afford whatever I wanted, I always pay off my credit card in full every month, if I use it, took notice of my mother who did exactly the same

Me too i awlays try and save up to buy something.

I use my credit card but that is for protection just in case i don't get the items and can get my money back.

Mind you my car was paid with part cash and part loan, but wish i had saved up now for it

[Margaret Pilkington]

BrightHouse is different, they rely on the fact that folk who are hard up and probably have a poor credit rating can get credit at exorbitant prices without any credit checks being done.

The Wonga.com loan thing is purely for a short term loan....where you know you are going to pay back the money in just a few days.......not months or years.
It is a business and businesses need to make money.

Yes Jaysay, I think we went to the same school of economics.......where the motto is 'If you can't pay, then you can't go'.
This method of financial prudence has served me well......and the credit card company make no money from me.......I pay up the whole amount the month it was spent.

It is soooo easy to get into debt though, and I am grateful that I have steered clear of that particular pitfall in life.

[setayas]

Wasn't usury illegal in the middle ages?

[jaysay]

I see Wonga are Blackpool FC's Shirt Sponsors