36% APR Credit Card. Why is this legal?
Discussion
Can anyone justify this kind of thing? http://www.luma.co.uk/?m=tmy&cam=(CreditCardSp...
As it says I guess. For credit 'building'. No one in their right mind would actually borrow using it. But for those who can't get anything else, a couple of purchases a month and then paying it off in full each and every month will build them a more favorable history, regardless of the extortionate APR.
Either way, beats a pay-day loan.
Either way, beats a pay-day loan.
-Pete- said:
Can anyone justify this kind of thing? http://www.luma.co.uk/?m=tmy&cam=(CreditCardSp...
Who do you think applies for cards with these kind of rates?Possibly people with fairly shakey credit history perhaps?
Whats the alternative, Wonga at 2000%+ ?
-Pete- said:
I fail to see why it should be legal to fleece the financially inept.
I fail to see why it shouldn't.They're driving a hard bargain, but they don't appear to be doing anything disingenuous. If you're a high risk client (as their customers will be) then rates at that level seem pretty fair.
My APR on the credit card isn't much below that! I had my credit history destroyed by a vindictive b
h of an ex-girlfriend.. It took my nearly 5 years to get everything sorted and now I have to rebuild my credit history and its the only option i have! Has a low limit and i put my diesel on it through the month and pay all but £50 off each pay day.. Its doing its job i must say, gained some credit score points over the last 6 months!
h of an ex-girlfriend.. It took my nearly 5 years to get everything sorted and now I have to rebuild my credit history and its the only option i have! Has a low limit and i put my diesel on it through the month and pay all but £50 off each pay day.. Its doing its job i must say, gained some credit score points over the last 6 months!-Pete- said:
Do you think the type of people who'd need this kind of card would have the sense to pay off the debt every month? It's like giving someone suicidal a gun to prove he/she won't shoot themselves.
You've answered your own question in that post. No, they won't pay off the debt, many will default and so the cost of servicing those loans is far higher to this company; thus, the higher charges.SpeckledJim said:
Payday loans typically 2000%. Sick.
It is our duty as a civilised society to protect those too stupid to know better.
Yup - protect them. Ban payday loans. It is our duty as a civilised society to protect those too stupid to know better.
Just let them starve for a few days, fail to buy nappies for their kids or turn to illegal loan sharks.
That will protect them.
As has been pointed out - the risks with these loans are far higher than for regular credit - hence the high charges.
Read up some of the stories about mid-night shopping in WalMart for example.
It is often poverty line minimum wage mothers buying nappies and formula for their kids.
They simply don't have any other (legal) choice.
walm said:
SpeckledJim said:
Payday loans typically 2000%. Sick.
It is our duty as a civilised society to protect those too stupid to know better.
Yup - protect them. Ban payday loans. It is our duty as a civilised society to protect those too stupid to know better.
Just let them starve for a few days, fail to buy nappies for their kids or turn to illegal loan sharks.
That will protect them.
As has been pointed out - the risks with these loans are far higher than for regular credit - hence the high charges.
Read up some of the stories about mid-night shopping in WalMart for example.
It is often poverty line minimum wage mothers buying nappies and formula for their kids.
They simply don't have any other (legal) choice.
Their friendly neighborhood representatives are constantly encouraged (and incentivised) to push more debt onto those who pay a bit each week, but can't pay it all.
"you can have £1000 now, for just £35 a week..." (forever)
If people can't live on their income, then they can't live on their income less huge interest, can they?
Crooks.
While I applaud the sentiment - you aren't offering a practical solution.
If it were as simple as "that rate is usurious shut them down" even our beleaguered government would have managed it.
Without pay day loans, many would end up borrowing elsewhere.
i.e. Loan sharks.
I hope you agree that is worse.
You can't stop the financially challenged from borrowing money when they desperately desperately need it.
If you put a limit on the interest rates then you will force the legitimate lenders out of business since the impairment rate/default rates are so high.
There is no easy fix.
Although you are right about one thing.
Check out the name of the most famous doorstep lending company in the UK's name!
http://www.providentfinancial.com/index.asp?pageid...
If it were as simple as "that rate is usurious shut them down" even our beleaguered government would have managed it.
Without pay day loans, many would end up borrowing elsewhere.
i.e. Loan sharks.
I hope you agree that is worse.
You can't stop the financially challenged from borrowing money when they desperately desperately need it.
If you put a limit on the interest rates then you will force the legitimate lenders out of business since the impairment rate/default rates are so high.
There is no easy fix.
Although you are right about one thing.
Check out the name of the most famous doorstep lending company in the UK's name!
http://www.providentfinancial.com/index.asp?pageid...
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