Jump to content

neither a borrower or lender be.


harry hayes
 Share

Recommended Posts

It's been there for quite some time Harry and every time I drive past it tends to rattle me and I've often thought of popping in to see how much they would lend me against my car and how much I would have to pay them back for the privilege.. :blink::oops:

 

There are a lot of similar ones about and they are just another type of company jumping on the bandwaggon to entice people who are desperate and who are struggling especially those with bad debts, ccjs etc who cannot borrow from anywhere else.

 

They run no credit checks on you but in the log book loan case they do retain your cars V5 log book so that you can't sell it etc until you have repaid them. You default... they have the right to take and sell your car, simples

 

I wonder how that works though as the V5 would be in your name so how could they sell it? I also wonder what happens if you have two V5 log books :wink:

 

Anyway I'm waffling again..........

 

These types of compaines as we all know charge an extortionate interest rate and are often rather unsympathetic but I guess for those who have no other way of borrowing it might seem a good idea.. but not if they read the small print or sit down and work out just what they are actually paying back EEK

 

There have also been recent calls for log book loan companies to be banned ....

 

http://www.bbc.co.uk/news/uk-12560883

Link to comment
Share on other sites

...which has now been replaced by three smaller one line ones about

24hr Debt Loan Decision, Paying Off Debst and Free UK Credit Checks :)

 

Given them their due they are prompt in asking eh ?

 

My add blocker may well be going back on soon 8)

Link to comment
Share on other sites

Passing down Mersey street I see a shop and sign which suggests they give loans against log books. In my jaundiced view against debt, that surely is not a healthy development.

 

Happy days

 

(lack of) Money is the root of all evil.

 

Nothing new here then Harry! many years ago there used to be a pawn shop (same principle as the one now offering money for car log books) in Mersey Street, if my memory serves me correctly I think it was Johnny Lee's, where there is poverty these greedy merchants will inevitably spring up. :(

Link to comment
Share on other sites

Good grief... that should not be allowed :evil:

 

Surely it's not right though as if you did take 12 months to pay it back that works out at £3595 a month which is three 1/2 times more (every month) than you borrowed in total the first month It's daylight robbery !!

 

Is wonga one of those short term ones though like the pay day ones where you only borrow for a week or so rather than long term.

 

I always get confused with APR... so if I borrowed £1000 for two weeks how would I work out how much had to be paid back :oops:

 

PS I'm not really borrowing... I just wondered.

Link to comment
Share on other sites

I should have looked before asking... wonga only lend upto £400 and only upto 38 days.

 

They have a slider which tells you how much you'd pay back.

 

So £400 over 2 weeks would cost me £461.49

 

and over 31 days would cost me £529.48 OUCH !!

 

and their interest rate is 360% pa (fized) APR like you said 4214%.... always confuses me so what is APR ??

Link to comment
Share on other sites

Annual percentage Rate, and if you didn't know that then you should not be interested in borrowing money Dizz.

I know what it stands for Algy... I just don't know what it actually means or how they work it out.

 

PS I've no intention of borrowing as the way I see it is that if you can't afford it and it's not essential, then either do without or save up for it.

Link to comment
Share on other sites

A Credit Union charges 12.64%APR. Not certain about the .64 but around there somewhere. This is a standard charge and does not change.

 

How many credit unions are there in Warrington/Chesire and can anyone use them ?

I know there's one in East Warrington with collections at Vulcan Close but that's all I know about them

 

Credit unions are used a lot in Australia but they seem to be used like banks/building societies for savings too I was told. Are the ones over here the same?

Link to comment
Share on other sites

How many credit unions are there in Warrington/Chesire and can anyone use them ?

I know there's one in East Warrington with collections at Vulcan Close but that's all I know about them

 

Credit unions are used a lot in Australia but they seem to be used like banks/building societies for savings too I was told. Are the ones over here the same?

 

They are very popular over most of the world. Yes, some are set up like proper banks, but locally there are collection points with trained volunteers who are there at certain times and days of the week. Not sure whether the latest one in town is still going, but the Credit Unions are, Fairfield,Howley and Latchford; Westy; Sankey; and the East Warrington one that you mentioned.

 

They are all run the same way under the rules of the FSA. They allow people and children to save as much or as little as they can afford/or want to and receive a dividend on their savings.

Anyone can join. Some save for a holiday or to buy a new washing machine etc. The loans are normally set on what the person has saved and what they can afford to pay back. The interest is added monthly on the reducing loan. Normally a small loan would be advisable so that both sides could see that it was affordable and would normally be set just above what had been saved. The person would also have to save for 13 weeks to show their ability so save.

It is all done by vetted volunteers and apart from material costs, all interest is returned as dividend apart from a varying sum set aside to cover loans.

The interest is what the banks pay but is increased by fund-raising. The last few years, Fairfield,Howley and Latchford (FHL)have paid interest in excess of what the banks have paid thanks to the fund-raising. PM me if you want further details.

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
 Share

×
×
  • Create New...