Grumpier Old Men and their ilk
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Author:  Old Grumpy [ Mon Apr 18, 2011 7:23 pm ]
Post subject: and their ilk and their ilk.
Adverts on the TV saying how 'helpful' they are if you just need a few quid to tide you over till the end of the month... They can have the wonga in your bank in a flash!! 15 minutes and off you go!

Wonga: Typical 360% APR (Representative APR: 4214%)
Quick Quid: Typical APR: 2278%
Tooth Fairy: Typical APR: 2689%

How can they be allowed to charge such usurious rates when interest rates are relatively low?

Author:  Roscoe Rules [ Mon Apr 18, 2011 7:29 pm ]
Post subject:  Re: and their ilk

Just proves there are a lot of fools out there who are easily parted from their money as they seem to be able to spend a wad on advertising.

These internet loan companies are no better than the loan sharks who prowl the streets of this country.

Author:  Jim Morricow (c1971) [ Mon Apr 18, 2011 7:48 pm ]
Post subject:  Re: and their ilk

I am not a supporter of these apparently new financial 'services', but the figures you quote are APR, not daily interest rates. Some of the more reputable companies do state in their TV ads that these services are for short term or 'too much money at the end of the month' borrowing only and not long term borrowing solutions.

Taking the worst case of 4214% APR, this works out as a daily percentage rate of 11.5%. So if you borrow say £500 for 2 days you will pay back a fee of £115. With Quick Quid this is a more reasonable £62. Doesn't seem too harsh given this is a quick turnaround, short term loan. At least the service is regulated and a whole lot better than borrowing money from 'Arry the Bastard who will remove your wobbly bits if you are a day too late in paying back?

That said this service is a symptom of modern day borrow now pay later culture which still seems to be prevalent amongst some folk.

Author:  Grumpy the Viking [ Mon Apr 18, 2011 7:55 pm ]
Post subject:  Re: and their ilk

I remember 20+ years ago providing finance to a company that specialised in lending to people with CCJs and mortgage arrears. At the time the MD of the company said he could not charge more than 3.25% per month for fear of the loan being challenged in court as an unfair contract.

Seems like peanuts compared to what these sharks charge.

Author:  Old Grumpy [ Mon Apr 18, 2011 7:58 pm ]
Post subject:  Re: and their ilk

But how many of the people likely to use these companies understand the difference between Representative APR, Daily APR and annual APR. All they want is some money to pay a bill before they 'get into trouble' with those they owe money to.
I've been in the situation of some month left over at the end of the money. It is not nice, I can assure you.

Author:  vocal [ Mon Apr 18, 2011 8:41 pm ]
Post subject:  Re: and their ilk

Lets face it if you have to go to this bunch of crooks you can't borrow from anywhere else, so you will (or not) pay whatever they ask. Only in our culture of have it all now could a company like thsi do well.

Author:  disident2 [ Tue Apr 19, 2011 8:14 am ]
Post subject:  Re: and their ilk

Do these companies show the way this country is going? Once the poor were their target. Now it seems they are after bigger fish.

Author:  CJ [ Tue Apr 19, 2011 8:31 am ]
Post subject:  Re: and their ilk

A quick search of shows it lost around a million quid in 2009. The company is so small it doesn't need an audit and it files abbreviated or "cut down" accounts.

I think this demonstrates how small a player it is in something of a niche market. The loss could indicate the risky nature of its loan book.

At the end of the day no one has to use these companies. It's a cultural thing - going without or cutting your cloth accordingly - is so yesterday.

Author:  Old Grumpy [ Tue Apr 19, 2011 8:45 am ]
Post subject:  Re: and their ilk

There are the door knockers as well in this industry. Mutual and Provident seem to be the main ones. They are quite happy for people to run up a huge tab on the promise of low weekly repayments. They were at about 1177% APR a while ago. No Credit Checks are made, and the loans are not visible on Experian etc

Author:  CJ [ Tue Apr 19, 2011 8:56 am ]
Post subject:  Re: and their ilk

Provident seem to be around 270% APR!!!

That said, they've never knocked on my door - I guess it depends on where you live.

I remember years ago I was in a house share and one of the girls used Provident. There was a chap came round every week and collected the weekly installment - in cash.

I presume the APR is so high to cover the defaults, the processing costs, the security risk etc.

But again - no one HAS to take these loans. The trouble with a free market is you can offer any product and if the demand is there some mug will take it.

Rather like Ben Sherman shirts and Ted Baker shoes - no one needs them, but the market's there - no doubt funded in part by the sharks we're talking about :shock:

Author:  whostolemyhair? [ Tue Apr 19, 2011 2:29 pm ]
Post subject:  Re: and their ilk

You can protect people from everything but themselves.

If Tracey wants to buy little Chlamydia a new pram made by Porsche, and Wayne is banged up trying to steal one,then 4000% interest is not going to stop her.

Author:  GixxerBlueNose [ Tue Apr 19, 2011 2:44 pm ]
Post subject:  Re: and their ilk

A lot of these places would be out of business were it not for the punitive fines imposed on people by banks for exceeding an overdraft limit - you could easily get stung for over £100 by some banks for bouncing even two small Direct Debits. Lesser of two evils, unfortunately.

Author:  El Tel [ Tue Apr 19, 2011 3:37 pm ]
Post subject:  Re: and their ilk

It should be government policy to ensure that Credit Unions are available everywhere. I doubt that millionaires Cameron, Osborne et all would want to do that.

Author:  D P Dance [ Thu Apr 21, 2011 7:32 am ]
Post subject:  Re: and their ilk

I have posted elsewhere about Brighthouse, (formerly Crazy George's).

Along with Provident, Cash Converters, webuyanycar, sell your gold, t these companies specialise in exploiting the poor and profiteering from poverty. Crazy George’s made headline news in 1995 after being dramatically “thrown out” of France due to its over-inflated prices and unfair credit terms
which were deemed to be extortionate and ruinous to low income consumers.

Why is UK legislation so weak!

Author:  Jigglypuff [ Thu Apr 21, 2011 10:07 am ]
Post subject:  Re: and their ilk

I saw an ad for one of these companies this week while I have been off work with the kids... quick quid or something similar,

The people in the ads always look well dressed, smart, and well to do and "just need a little extra to get them by this month"

Its daylight bloody robbery and they prey on the skint and the ignorant. Brighthouse is the same.. cheesy adverts showing these two "housewifes" who both love "Jeremy Kyle" type shows and do their shopping at Brighthouse. (Top tip to the housewives.... There are no housewives these days, we all have to work kids or not. Get a job, you will be able to afford that sofa).

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