Loans on the media

ronk · Post by **ronk** » Fri May 18, 2018 11:10 pm

I’ve seen and heard adverts for loans - I don’t want nor fortunately don’t need to borrow but what has amazed me is the APR they want to charge. One on the TV this morning was 1299% and one on Classic FM was boasting 488% I’m sure there’s everything in between - it must be very easy to get in the financial brown stuff these days!

john-e89 · Post by **john-e89** » Fri May 18, 2018 11:24 pm

Bastards preying on the weak Ronk, scruples of a gutter snake.

Classic FM....no better than any other scum bag advertiser...

RustyZ4 · Post by **RustyZ4** » Fri May 18, 2018 11:34 pm

Unfortunately it’s for desperate people, makes my blood boil that these vultures can charge so much to the people who can least afford it

ronk · Post by **ronk** » Fri May 18, 2018 11:35 pm

The 1299% was the one that shook me,,!
There’s also a weekly pay place brighthouse ?? They also charge an arm and a leg. I suppose if you don’t need these deals you should count your lucky stars.

I dare say the rates are higher because of defaulters ?

john-e89 · Post by **john-e89** » Fri May 18, 2018 11:45 pm

Mind you having said that no one is holding a gun to anyone’s head and they do at least advertise the APR, but then they are preying on weak people who just see a weekly or monthly payment and think wow....I can afford that without looking further. Legally nothing wrong but morally.....I don’t know....I guess people need to stand on their own feet and take responsibility.....

......kinda wish I hadn’t posted now.......

TonyP · Post by **TonyP** » Sat May 19, 2018 7:03 am

Please please tell your kids to never take out one of these loans no matter how desperate they are for instant cash as it affects your credit scoring & makes it difficult to get a mortgage in the future.

buzyg · Post by **buzyg** » Sat May 19, 2018 7:56 am

Never did understand why someone would take out such a loan.

How desperate or gullible do you have to be.

Ewazix · Post by **Ewazix** » Sat May 19, 2018 8:08 am

buzyg wrote: ↑Sat May 19, 2018 7:56 am Never did understand why someone would take out such a loan. How desperate or gullible do you have to be.

If the alternative is a loan shark who will threaten to break your your kids legs when you inevitably miss a payment and offer drug running and prostitution as the alternative payment option, then 1000% APR with a worst case scenario of bankruptcy is an attractive deal. It's an unfortunate reality for a lot of people

buzyg · Post by **buzyg** » Sat May 19, 2018 8:24 am

Ewazix wrote: ↑Sat May 19, 2018 8:08 am
buzyg wrote: ↑Sat May 19, 2018 7:56 am Never did understand why someone would take out such a loan. How desperate or gullible do you have to be.
If the alternative is a loan shark who will threaten to break your your kids legs when you inevitably miss a payment and offer drug running and prostitution as the alternative payment option, then 1000% APR with a worst case scenario of bankruptcy is an attractive deal. It's an unfortunate reality for a lot of people

I was brought up by entrepreneurs in Liverpool. My parents did indeen go bankrupt at one point. I still don't understand.

TitanTim · Post by **TitanTim** » Sat May 19, 2018 11:38 am

Its just legalised loan sharking and these companies should be banned. The people who take out these loans are more than likely at their dire straights end financially and will do anything to get money. Once entrapped they will never escape from paying the interest.

I always watch a programme "Can't Pay We'll Take it Away" following the High Court guys who serve writs normally for unpaid debts, parking fines, unpaid child minding fees etc, and amazed how little money or savings people have. These are people living in expensive houses, all the mod cons, BMWs, Mercs etc sitting on the drive and they don't in some cases have any spare cash or savings to pay a cent. Some of the debts might only be a few 100 quid and these people in their luxury are unable to pay up. Just shows how people are living on the edge or over it and beyond their means.

Tim.

ronk · Post by **ronk** » Sat May 19, 2018 12:04 pm

I had a telephone call from a firm offering to wipe 95% off my debt - I don’t have any but they didn’t listen.

So it seems you can borrow borrow borrow then have it written off - probably with implications tho!

enzed4 · Post by **enzed4** » Sat May 19, 2018 12:35 pm

We have a similar rort running here, where 'entrepreneurs' drive into poorer neighbourhoods in trucks loaded with TV's, fridges, microwaves, toasters, even clothes and food, and offer them at regular payments with sky high interest rates. Again, they're preying on the poor and the desperate, many of them with poor English skills, who only see items they can't afford, offered at payments they think they can make. Once they default, the interest payments are crippling so they can never pay the items off. Even if they do make all of the payments without defaulting, they end up paying so far above retail the items might as well have been gold-plated...

markalp · Post by **markalp** » Sat May 19, 2018 12:50 pm

ronk wrote: ↑Fri May 18, 2018 11:10 pm I’ve seen and heard adverts for loans - I don’t want nor fortunately don’t need to borrow but what has amazed me is the APR they want to charge. One on the TV this morning was 1299% and one on Classic FM was boasting 488% I’m sure there’s everything in between - it must be very easy to get in the financial brown stuff these days!

I have always though that loan rates should be tied to the bank of england rate plus a risk add on between 5% and 20%

These 1000%+ apr rates are just immoral.

mcbeee · Post by **mcbeee** » Sun May 20, 2018 12:58 am

It’s called usury and we have laws against it.

noiseboy72 · Post by **noiseboy72** » Sun May 20, 2018 9:04 am

The majority of these payday loans are designed to be short term - a month or so at the most. The problem is that many of the people taking them out live so hand to mouth that they cannot afford to pay them back without defaulting on other regular payments.

Mobile phone contracts can be some of the worst. £1200 for an iPhone 8 over 2 years was one I saw. The problem was the person that took it out thought that if she sold the phone and cancelled the contract she wouldn't have to keep paying for the phone. She got a nasty shock and a ccj for her lack of knowledge about how these things work!

Brighthouse have a lot to answer for. Overpriced furniture and electronics and pushy salesmen suggesting they buy more stuff while extending the current repayment terms on existing agreements so the monthly outgoings go up slightly but the term often doubles. 7 years to pay off a TV is not uncommon. Who even keeps a TV for 7 years these days?

I feel genuinely sorry for people on very low incomes. It doesn't need much of an unexpected bill to tip them into a debt spiral, but I have much less sympathy for those that borrow for luxury goods they don't need. Anyone remember that advert for the couple with loads of debt who consolidated it and then buy a tractor mower?? Totally irresponsible and all too true.

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