Friend in debt with logbook loan
- Thread starter BoyceyLDN
- Start date
It makes me gag how people can be so stupid, I am taken aback when offered loans of 7-8% for being too expensive on the APR, anything over 10% is just an instant nope.
People do desperate things when they've just lost their job, have poor credit and the bills are piling up. These are people who don't feel like they have the option of just deciding not to borrow money.
Caporegime
Sounds like they’ve front loaded the interest, looks like he didn’t read the small print.....
Wow!
Wow!
Well they haven't as the settlement is way less than total payments remaining.
It sounds like a normal loan structure. The APR is just crazy high.
Caporegime
Aye true enough but still, who in their right mind borrows £4K @300% APR? Scary.
Associate
- Joined
- 19 Aug 2013
- Posts
- 17
Someone in dire need of some cash. It's sad that this is allowed to happen.
Soldato
When people are desperate, there's always vultures ready to take advantage.
Soldato
Check with CAB or free solicitor session as others have said.
Are they (cough) regulated by the FSA? If so, it sounds like they would be in beach of some regulation not to provide a loan schedule with the Apr & terms on. If the CAB or a solicitor can't help with wriggling out it then your friend needs to apply for a suitable credit card and shift the balance. At least then with the right card they'd have a period of interest free to catch up with paying it off.
Really ought to be a law against these outfits charging more than X above the base rate, they're really being allowed to take the ****.
Are they (cough) regulated by the FSA? If so, it sounds like they would be in beach of some regulation not to provide a loan schedule with the Apr & terms on. If the CAB or a solicitor can't help with wriggling out it then your friend needs to apply for a suitable credit card and shift the balance. At least then with the right card they'd have a period of interest free to catch up with paying it off.
Really ought to be a law against these outfits charging more than X above the base rate, they're really being allowed to take the ****.
Don
This.
For the OPs friend. He probably had two choices in his mind.. this loan or utilities cut off and no food.
You're a good friend for helping him out
Caporegime
- Joined
- 21 Jun 2006
- Posts
- 38,372
He could have sold the car or took some equity out his house or taken any job to get a loan whilst looking for a better job.
I would never take out a loan above 3% at current rates never mind 300%
Man of Honour
Hindsight is a wonderful and easy thing to point out from your high horses.
Soldato
Unless CAB or a solicitor can help him wriggle out give them the car and write it off as a ******* moronic mistake of epic proportions.
Permabanned
- Joined
- 11 Feb 2011
- Posts
- 2,136
These guys are amazing. My mate owes thousands through payday loans. One call to stepchange and they shut them all up with £10/£15 a month.
For the next 20 years or so, but still, they freeze the interest and do it for free. Unlike other debt management companies that would charge a couple of £100 a month to do the same thing.
Caporegime
- Joined
- 21 Jun 2006
- Posts
- 38,372
nothing to do with hindsight. only a moron would take out a loan at 300% with interest being charged at the start.
i would if i was extremely tight for cash just go on a mortgage payment holiday. as i have accrued enough over payments to do so for several years.
but if i never had that facility available there is no way i would go near any loan above 3%. i'd rather borrow money from someone i know and pay them 3%.
Soldato
Can he "sell" the car to a friend or family member?
IE, they give him £4,000, he settles the debt, gets his V5 back, transfer it to friend as collateral and continue to pay the current £500/month for 8 months to friend until cleared?
It's hard to go to friends or family for money but right now he's on a precipice from which he can recover, but he doesn't have long to make the jump before it gets much, much worse.
IE, they give him £4,000, he settles the debt, gets his V5 back, transfer it to friend as collateral and continue to pay the current £500/month for 8 months to friend until cleared?
It's hard to go to friends or family for money but right now he's on a precipice from which he can recover, but he doesn't have long to make the jump before it gets much, much worse.
Soldato
These loan sharks should be far more heavily regulated. Those interest rates are criminal. Anything over 50% should be banned imo. If a company can’t make money on that rate then there is something seriously wrong.