Christmas on Credit??

[Punched]

Just seen the programme on TV and i'm shocked that, in the western world they put a cap on what these payday loan companies can charge you. In the US they've capped it by law to 36% APR, In most of Europe its the same, But here in the UK there are several Pay Day Loan companies that charge in excess of 2000% APR.

Why is it that we let these companies pray on the most vunerable, and why don't we cap the max a company is allowed to charge for Interest.
Strange to see that the reply from the Government was, that if they did cap it, people would go to Loan sharks

Can't see the logic in that statement, mind you with 12 years of this government have they ever got anything right??

So tonight i'm setting a challenge, For fun only, to see who can come up with the company with the highest APR for a Payday type loan.

I found one company [**snip** with an APR of over Typical 1355% APR (30 day loan).

Can you get one higher??

Edit: Just found one even higher **snip** Typical 2356% APR

[Indizine]

If they are so bad, why do them a favour by promoting their link here?

[Punched]

If they are so bad, why do them a favour by promoting their link here?

Its a challenge to show who charges the most, Its a rip off and in the UK legal to do

Just out of interest, its be fun to see the highest APR we can find

[Indizine]

I know what you intended the post for, but you didn't answer my questioon

I'm not sure what is fun about finding out who is crippling people though, or maybe it's just me.

[bsfweb]

In parts of India, for the lower castes it is entirely possible if they fall into debit for an entire family to be sold into slavery for a loan of less than £100 sterling.

Luckily it is not the same in the UK, but interest rates of over 500% also has devastating consequences.

On TV tonight a UK Govt Minister (or representative) was interviewed saying that UK Consumers has requested no capping......I didnt catch the excuses......presumably the argument of poor families with the poor credit ratings wont get the loans they want. Perhaps that is a good thing.

UK State benefits are sufficient for families to survive, so why are loans necessary, except when there is abuse. Flagging up these 'situations' by being unable to borrow might actually send these families to better solutions - the gift of desperation, as it is sometimes called.

I am not trying to be political, or condescending, and I apologise if I have come across as insensitive, ignorant or naive.

[Punched]

On TV tonight a UK Govt Minister (or representative) was interviewed saying that UK Consumers has requested no capping......I didnt catch the excuses......presumably the argument of poor families with the poor credit ratings wont get the loans they want. Perhaps that is a good thing.

If UK Consumers could chose to pay a company 36% APR or 2500% i think they would go for the lowest, The Government has a policiy of blaming others despite how stupid it may sound.

What they actually said was that if they capped it at 36% the poorest would fall to the mercy of the loan sharks, so for that reason, they let companies charge what they like 2500% +

To me that don't make sense??

but you didn't answer my questioon

I'm not promoting them but demoting them, Pointing out the ones with the highest APR isn't going to get members signing up in a frenzy.

Modern day loan sharks own, websites just like these, and with the governments excuse that people will fall pray to these crooks, well it says it all really

[Indizine]

but it would help none the less if you didnt unwittingley promote them ....you may not fall into this trap but consider who might be reading this and might do.

You're still doing them a favour adding the link. Still don't get your point of the fun in pointing them out. Just seems a bit strange to me.

[seanstevens]

There needs to be a balance between sensible lending and sensible borrowing.

If someone is desperate for money then they will take a loan out no matter what the %, to me this is not sensible borrowing. Some people who use this type of company would not think of selling some furniture or taking a job to clean something somewhere and then just moan a year down the line once they finally work out how much they will be paying back.

There needs to be clearer rules on both sides. It is OK moaning at companies like this, but it they act within the laws of the country as they currently stand then it is up to the consumer to ignore them so they go out of business.

[Punched]

but it they act within the laws of the country as they currently stand then it is up to the consumer to ignore them so they go out of business.

Sad thing being that these companies will give credit to those that can bearly afford it and they make it so easy when your desperate, you have no choice.

The Sad thing about all this is that they've capped payday loans in the states and all Europe, But that donkey from the government last night said, that if we capped the max apr to 36% it would make people go to the loan sharks???

So basically what he's saying is its OK for these companies to charge 2500% apr ?? I for one would not wish that government minister anywhere near my company, total idiot They can't work out basic maths, how can they work out their expenses?? Oh i forgot - they can't

[alby]

As someone who has worked within the finance market, i fully agree with comments made about high APR loans being detrimental to the financial well being of families and individuals. My work involved dealing with many who had got themselves into financial trouble through excessive APR. The excuse many lenders ( if that is the right term to use) is that it is rate for risk, meaning those who tend to obtain these loans will not be able to get them anywhere else as the are a high risk. ( ie, defaulting on the loan payments ). The problem is that at such high rates they never get themselves out of the problem. I believe the FSA is now looking at putting some sort of rule in place to stop this, which is about time.