Omg is this really LEGAL? Provident!

[Ellybum 10]

I don't think borrowing money is in any way a right.

Everyone should have equal responsibility, maybe understanding basic finances should be one of them.

 

If they end up in that situation through their own failings, then they can expect to pay more than someone who borrows through choice (and with a good credit rating).

 

There should be laws to limit the APR's though in order to protect people from overly predatory companies.

 

Very harsh Cyclone. Get off your soap box and see the world for what it is. We all have different priorities in our lives. PT's last post says it all.

[fox20thc 10]

I think a point people are missing is that the shopacheck and provident reps also go door to door practically waving tenners in peoples faces saying sign now and you can have it today.

 

They regularly target low income housing estates where they know people are more needy/gullible and will waive the huge apr and see it as "at least somebody will lend me some money"

 

They tried it on with me not long ago, knocked on the door selling the features and benefits of high street vouchers for christmas in exchange for £1.50 a week they will collect from your door.

 

The rep didn't take kindly to my refusal to participate in doorstepping finance packages to people who cant afford it.

[Ms Macbeth 77]

Its a rip off on those who can least afford it There is a Sheffield Credit Union (sorry I havent any contact details)where after saving regualrly for a short time you can borrow money at a very low rate of interest They are in the process of setting up a credit union at the Terminus Cafe in Low Edges which is attached to the Sheffield Credit Union. You dont need to use the loan sharks Sheffield Debt Counseeling also will have the details also local advice centers. We can put these evil people out of business by not using them.

 

So glad you posted this Choirboy. I'm a big fan of Credit Unions, and was involved in setting one up in Rotherham. They are a fantastic way of offering loans to people on low incomes as well as getting people into the habit of putting even a little away. Anyone interested, have a look here http://dagda.shef.ac.uk/help_yourself/full_search_new.asp?name=SHEFFIELD+CREDIT+UNION+LTD

[fox20thc 10]

I think that should be our next project..

[Andy 10]

These people are the very worse end of the Financial Services industry. As PT says, legalised loan sharks is one term that can be used to describe them. Sadly some people have nowhere else to turn - high street banks won't lend to people with a poor credit rating. The cost of high risk lending (which this certainly is) is higher interest rates.

 

If they were banned from charging high rates, they'd stop operating. And if they did that, those people who do need to use their services probably wouldn't have access to credit at all.

 

So although I don't like the way they operate, I guess they do have a place.

[bensonhedges 10]

Well it's just capitalism isn't it? If there's a market for this type of loan (and there obviously is) then some enterprising company will fulfil that need. That's business folks. I'm not saying I approve of how these companies operate but take a minute to consider the alternatives to our capitalist society - I know where I would rather live.

[bagpuss29 10]

i have had the Provident for the last 13 years it makes u think about all the intrest i have paid back

[never wrong 10]

I seem to remember a case going through the courts a couple of years ago where the judge because the intrest was to high the judge cancelled the debt what does the law say is to high inlight of 177% what is the baseline

[Chumley 10]

You need to put this in perspective.

 

Although they charge very high interest rates, these companies do not make huge profits. As others have noted, they have to pay door to door collectors as their customers generally don't have bank accounts. They also have to write off 20-25% of their debts due to defaulters. Many of the customers live in rented social housing and don't leave a forwarding address when they flit.

 

If you think it's wrong to charge such high interest, fine, but take it out on those that really benefit - the customers that never pay it back.

[Plain Talker 11]

if you have the wherewithall to be horrified at the APR's - you've never been desperate enough to use them.

nope, I HAVE been desperate, been there, done that, got the t-shirt, bought a baseball cap.... in the past......but I have never, (like a fool) until recently looked carefully at, and taken notice of the total amount paid back.

 

as I say, cyclone.. what DO you do if you are desperate? if little sally needs shoes? you can't keep her of school... you can't send her to school in bare feet...

 

you're styymied, and they have you by the "short hairs"

[Plain Talker 11]

You need to put this in perspective.

 

Although they charge very high interest rates, these companies do not make huge profits. As others have noted, they have to pay door to door collectors as their customers generally don't have bank accounts. They also have to write off 20-25% of their debts due to defaulters. Many of the customers live in rented social housing and don't leave a forwarding address when they flit.

 

If you think it's wrong to charge such high interest, fine, but take it out on those that really benefit - the customers that never pay it back.

 

Dont make huge profits? you jest, surely?

 

if they weren't making decent money on the backs of the disadvantaged's poverty, they would not consider it worthwhile. these sharks aren't in it out of humanitarian ideals.

[NEWKID 10]

nope, I HAVE been desperate, been there, done that, got the t-shirt, bought a baseball cap.... in the past......but I have never, (like a fool) until recently looked carefully at, and taken notice of the total amount paid back.

 

as I say, cyclone.. what DO you do if you are desperate? if little sally needs shoes? you can't keep her of school... you can't send her to school in bare feet...

 

you're styymied, and they have you by the "short hairs"

There are cheap shoes to be had or even second hand from car boot, if you cant afford it dont have it,Buying it on money you havnt got is just plain stupid