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loan sharks

BuggiBuggi Posts: 674
edited December 1969 in Campaign
a couple of months ago i applied for a new credit card coz i wanted to transfer a balance. they wouldn't give me a "platinum" card but offered me one with a limit of œ400. [Pah! like that's gonna help] so i told em to shove it.

Seriously tho, i'm not in debt as such, i just had a big balance and sick of paying mostly interest, and i'm not gonna take on a card just for the sake of it. managed to get my balance transferred to another card anyway so no interest for me for 12 months.

anyway, this is my gripe. since then i've been getting loan offers through the door from some very unscrupulous companies. obviously they have seen somewhere that i got turned down so that's why they are sending me these offers, and the latest one is a loan offer with an interest rate of .... wait for it....














<b>
...only 177% APR!!!!!!!!!!!!! [:0][:0][:0]</b>

Is that actually lawful???? my god, i feel sorry for people who are actually in debt and can't see a way out and then o goody, a loan offer drops through the door just when they are at their wits end. i think it's disgusting that companies can do this!

one hundred and seventy seven fecking percent!!!!!! you may as well just commit harry carry now eh?

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To infinity... and beyond!
my epic adventure: www.action.org.uk/~Antonia
_____________________________________________

To infinity... and beyond!
my epic adventure: www.action.org.uk/~Antonia

Posts

  • gbyersgbyers Posts: 164
    Register with the mailing preference Service. that should stop the unsolicited mailshots.

    http://www.mpsonline.org.uk/mpsr/

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    Anyone expecting to see a witty and imaginitive signature here obviously hasn't seen my username.
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  • BuggiBuggi Posts: 674
    i'm not bovvered for meself like, i'm not that much of an idiot, i just think it's bad that companies can operate like this. isn't there someone you can complain to? feel like going on a crusade [:)]

    _____________________________________________

    To infinity... and beyond!
    my epic adventure: www.action.org.uk/~Antonia
    _____________________________________________

    To infinity... and beyond!
    my epic adventure: www.action.org.uk/~Antonia
  • gbyersgbyers Posts: 164
    I guess you're asking if they are doing anything illegal and therefore can action be taken to stop them trading. I don't know, but your first step in your crusade could be to ask either your local Citizen's advice Bureau or Trading Standards.

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    Anyone expecting to see a witty and imaginitive signature here obviously hasn't seen my username.
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  • ACcpACcp Posts: 655
    APRs of 177% tend to be driven by a high annual fee as well as a high interest rate, combined with a low limit.

    They have to quote a typical APR, which will be based on a typical balance, which in turn is driven by a typical credit limit.

    So if the average credit limit is 500, and the average balance 400, and say there was a monthly charge of œ8, (so about œ100), and the annual interest rate was 30%, then the APR is found by adding up the total charges for credit (100 + 30% * 400) = 220 and dividing by average balance (400) = 220 / 400 = 55% APR.

    Going into too much detail if I bang on about APRs for cash advances etc too, so I'll stop on that track...

    But I will say be careful about balance transfer fees. Card companies are seeing it as a huge revenue generator, and they don't have to include it in the APR (really don't know why the relevant authorities haven't jumped on them yet (probably because they are too busy looking at payment protection)) so a 0% / 12 month bt deal with a 3% fee, can be equivalent to a 5% APR when you take into account payment hierarchy, and the fact that you are paying down the balance. Outrageous really.

    I don't eat newly created species of marine life, or even newly discovered species of marine life for that matter, but if I did eat any sort of marine life, I would use this guide: -www.fishonline.org/information/MCSPocket_Good_Fish_Guide.pdf
    I don\'t eat newly created species of marine life, or even newly discovered species of marine life for that matter, but if I did eat any sort of marine life, I would use this guide: -www.fishonline.org/information/MCSPocket_Good_Fish_Guide.pdf
  • Buggi, no it's not illegal in itself but if the rate is grossly excessive a court may use its powers under the Consumer Credit Act 1974 to decide it is unenforceabe. Having said that, these powers are very rarely used because in a series of cases the loan companies have sucessfully argued that their lending is risky and they need to charge a high rate.

    If you need a bit more detail, send me an email.
  • alecstilleyedyealecstilleyedye Posts: 1,170
    sure it wasn't a typo? many people producing leaflets etc on the cheap rely on the spellchecker and save pennies rather than using a proper proofreader.

    if i had a better signature, i'd use that instead
    riding on my bicycle, i saw a motorcrash…
  • BuggiBuggi Posts: 674
    na, i've had them more than once, it's definitely not a typo.

    _____________________________________________

    To infinity... and beyond!
    my epic adventure: www.action.org.uk/~Antonia
    _____________________________________________

    To infinity... and beyond!
    my epic adventure: www.action.org.uk/~Antonia
  • redcogsredcogs Posts: 3,232
    Loan sharks, along with the financial institutions (banks etc), are the root of all evil.

    Simple rule, avoid em if you can, criticise em whenever possible, and overthrow em at the first opportunity.

    <font size="1">please look up to the stars.. </font id="size1"><font size="6"><font color="red">***</font id="red"></font id="size6">
    <font size="1">please look up to the stars.. </font id="size1"><font size="6"><font color="red">***</font id="red"></font id="size6">
  • <blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica" id="quote">quote:<hr height="1" noshade id="quote"><i>Originally posted by redcogs</i>

    Loan sharks, along with the financial institutions (banks etc), are the root of all evil.

    Simple rule, avoid em if you can, criticise em whenever possible, and overthrow em at the first opportunity.

    <font size="1">please look up to the stars.. </font id="size1"><font size="6"><font color="red">***</font id="red"></font id="size6">
    <hr height="1" noshade id="quote"></blockquote id="quote"></font id="quote">

    Apart from the comment about banks (we get very good deals from the local HSBC) I'm with redders on this.
  • Rigid RaiderRigid Raider Posts: 1,568
    You can understand why they do so well though.... my wife works for a mortgage firm that specialises in "sub-prime" borrowers. Very many of her clients are Nigerians living in the UK, who are paying around 11% apr for their loans. My wife gets at least one long phone call a week where she finds herself explaining to these people that when you take out a mortgage, even an interest-only mortgage, you do need to keep up with the repayments otherwise the interest does, kind of, accrue... most of her callers are furious because their mortgage has mysteriously grown in the months since they signed the contract. Last week she had a Nigerian woman who had taken the mortgage on the advice of a Nigerian IFA, her brother, who hadn't explained this point and when he came on the phone ranting and abusing my wife, he didn't seem to have grasped the simple principle either.

    Feckless muppest all of them and great fodder for the unscrupulous.

    Global TH1.5 Ti hardtail.
    Global TH1.5 Ti hardtail.
  • <blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica" id="quote">quote:<hr height="1" noshade id="quote"><i>Originally posted by Rigid Raider</i>

    You can understand why they do so well though.... my wife works for a mortgage firm that specialises in "sub-prime" borrowers. Very many of her clients are Nigerians living in the UK, who are paying around 11% apr for their loans. My wife gets at least one long phone call a week where she finds herself explaining to these people that when you take out a mortgage, even an interest-only mortgage, you do need to keep up with the repayments otherwise the interest does, kind of, accrue... most of her callers are furious because their mortgage has mysteriously grown in the months since they signed the contract. Last week she had a Nigerian woman who had taken the mortgage on the advice of a Nigerian IFA, her brother, who hadn't explained this point and when he came on the phone ranting and abusing my wife, he didn't seem to have grasped the simple principle either.

    Feckless muppest all of them and great fodder fo the unscrupulous.

    Global TH1.5 Ti hardtail.
    <hr height="1" noshade id="quote"></blockquote id="quote"></font id="quote">

    It doesn't surprise me in the slightest. Remember, that countless fall for, "Get out of debt by taking a loan with us."
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