Why is it allowed?

[Peter T]

There was an advert on Sky Sports today (several times) advertising available loans (for Christmas shopping?).

 

The APR was 2689%.

 

Why is this allowed to happen? It's ok taking the moral high ground and that people shouldn't borrow what they can't pay back, BUT the opportunity is there and as with all good intentions, people will think they can pay it back quickly and so will be tempted. It doesn't take much to go wrong and you are in one hell of a mess.

It makes the Banks look like angels.

[silverlady54]

It shouldn't be allowed, but unfortunately, when there are desperate people looking for any way to get some money, they don't or won't read the small print. More of the neighbourhood credit unions should be set up so people know there is somewhere reliable to go when they need a loan and would not have to go to these unscrupulous companies.

[Dizzy]

2689% I completely agree... they shouldn't be allowed.

 

The people who are so desperate that they have to go for such loans (I presume almost everyone is eligable despite their credit rating) are the very ones who will struggle to pay it back back and will get hammered for the massive interest... making it even harder to pay... leading to bailiffs, court action blah blah blah

 

Problem is though that most banks and other lenders are being so tight with 'our' money that what choice do some people have.

[Peter T]

It shouldn't be allowed, but unfortunately, when there are desperate people looking for any way to get some money, they don't or won't read the small print. More of the neighbourhood credit unions should be set up so people know there is somewhere reliable to go when they need a loan and would not have to go to these unscrupulous companies.

 

A shortage of volunteers who won't give an hour a week up, stops that from happening. (But you are right).

I just think that there should be a law to stop them from operating.

[P J]

bit rich Peter considering the ad banner above this topic as I type is for a payday loan company charging 1300% interest or there abouts. Their money is going into this sites pocket

[Peter T]

I agree PJ.

I think that these are put up by Google, NOT Gary. And I think they are word associated.

No doubt he will correct this if I am wrong.

 

Although perhaps we shouldn't point it out, he might put the snowflakes on.

[Mary]

YAY Snowflakes - and the adverts are up to Google!

[inky pete]

Any short term loan will always have a very high APR.

 

If I were to lend you ?100 for a week or so to tide you over until payday, and you then pay me back an extra tenner for my trouble, then the APR on that would come out at over 14,000%!!!

 

Annual Percentage Rate is a bit of a nonsense when applied to loans of less than a full year.

[Peter T]

It's ok if you pay it back, but it is a trap that the majority of those who use it don't see and only read the small print when it is too late.

[Sue Durnim]

Small print should be made more prominent and bigger and should be on screen a lot longer than a split second, too many businesses taking advantage in this current climate, taking opportunities to mislead.

 

My other pet hate are the cosmetic surveys that say in large type ?90% of women buy or use our product?, then in very small letters it reads ?45 people surveyed?.

[harry hayes]

I know debt is not a black and white issue, but I think Mr Micawber had it right. Income ?1 spend 99p and you're happy. spend more than the pound - unhappy.

 

There are plenty of almost immoral adverts preying on peoples weaknesses and my own view is that they should have very tight legislation placed on them.

 

Happy days