Spot the mistake

graemer

graemer

graemer

Associate
Joined
21 Apr 2004
Posts
536
Location
South Shields
I got this junk mail through the door today.

I telephoned the company and asked them to remove me from their mailing lists.

I asked if there was a mistake in the interest rate example given and to my horror the answer was "NO this is the rate we charge"

How can companies get away with this. You would have to be very desperate.

http://i40.photobucket.com/albums/e215/Graemer1/File0001.jpg

sorry fro the rubbish scan.
 
Wardie said:
People must be pretty desperate...
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and companies like this exploit them, once they snare folks into being a customer they some really dodgy methods to get them to take out more and more credit
 
Steameh said:
surely not.....

shouldn't that be 17.7%

Like you say, you'd have to be desperate and there are some desperate people out there.
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no 177% is correct and some of there loan deals have much higher rates than that
 
I personally don't see the problem with it. If you haven't got a good enough credit rating to get a better deal elsewhere then there is probably a very good reason for that. Companies offering credit to people with extremely poor credit ratings need some assurance that they will get a fair share of their money back before said customer run's off without a trace...
 
*Shakes Head*

Thats just evil. And I mean that in the truest I think they must be actually be able to sleep at night having caused people genuine misery!
 
While it is an enourmous rate, the lons offered are short term, low value loans. While they do attract that rate and are, imo, extortionate, the total repayable isn't as huge as you would think since the loan term is typically 20, 32 or 55 weeks.
 
I get the point about the loand being short term and also that people can be a risk but there are better places to go for loans.

I guess its the same everywhere but where I live there is a credit union run by the council that help people out like this and their rates are a lot less. I guess the downside of them is you have to have some money to borrow against in the first place.

Looking into it further someone comes round to your house each week to collect the payment as well. Dont they call them loan sharks?
 
graemer said:
I get the point about the loand being short term and also that people can be a risk but there are better places to go for loans.
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If people are silly enough to not shop around then in all honesty they haven't got a leg to stand on if they moan about the rate. If people voted with their feet a little more places like this wouldn't be able to get away with charging such a high percentage.
 
malfunkshun said:
While it is an enourmous rate, the lons offered are short term, low value loans. While they do attract that rate and are, imo, extortionate, the total repayable isn't as huge as you would think since the loan term is typically 20, 32 or 55 weeks.
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Perhaps though if you are desparate enough to need to get a loan from these people, it would be a lot of money for you.
 
There was a program over a year ago on the BBC about this and its genuine, undercover they found that they actaully sold other loans to existing customers to pay of their old loans!

The Pvident group also own Yes car credit and Yes insurance......
 
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