evildrneil Posted January 29, 2011 Share Posted January 29, 2011 I got a letter yesterday offering me a loan for a mere two and half thousand percent APR. Much play was made of the fact that CCJs and the like wouldn't affect your application. Obviously these people (and the many others that are proliferating) are targeting people already who already have problems with debt and appear to be little more than formalised loan sharks. Is it time that we followed France and Germany and imposed a maximum APR that can be charged on loans? Link to comment Share on other sites More sharing options...
chem1st Posted January 29, 2011 Share Posted January 29, 2011 Yes it is. Shame on the forum for letting wonga advertise all over it. Average 2000%+ APR. Link to comment Share on other sites More sharing options...
galaxy-m Posted January 29, 2011 Share Posted January 29, 2011 if there's a market for it then people will always supply it - whether its legal or not. are we not better off keeping it legal so al teast there is SOME regulation and monitoring... else we'll just have more and more illegal loan sharks. and anyway, if you're dumb enough to actually lend off these people then you deserve all you get! Link to comment Share on other sites More sharing options...
ricgem2002 Posted January 29, 2011 Share Posted January 29, 2011 Yes it is. Shame on the forum for letting wonga advertise all over it. Average 2000%+ APR. but thats revenue for the forum whether its immoral or moral . i wonder what it will charge to become a member soon ? Link to comment Share on other sites More sharing options...
chem1st Posted January 29, 2011 Share Posted January 29, 2011 but thats revenue for the forum whether its immoral or moral . i wonder what it will charge to become a member soon ? I very much doubt it. It's more likely it will launch a free newspaper and be the leading news source of the city. IMO Link to comment Share on other sites More sharing options...
Alex C. Posted January 29, 2011 Share Posted January 29, 2011 No usury shouldn't me made illegal. Rules governing displaying APRs should be clarified to acknowledge that they do not suit any loan with a duration of less than 1 year. Link to comment Share on other sites More sharing options...
dave_dave Posted January 29, 2011 Share Posted January 29, 2011 Why on earth should they make it illegal? Do people not have a choice? Are they forced into taking these loans? No. Link to comment Share on other sites More sharing options...
evildrneil Posted January 29, 2011 Author Share Posted January 29, 2011 if there's a market for it then people will always supply it - whether its legal or not. are we not better off keeping it legal so al teast there is SOME regulation and monitoring... else we'll just have more and more illegal loan sharks. I think a lot of the problem with loan sharks is that it's very difficult to do anything about them until they do something like demanding money with menaces, at which point you have to convince the menaced individuals to testify. If charging an APR over a given level was illegal then you can stop them before they start? and anyway, if you're dumb enough to actually lend off these people then you deserve all you get! Many people just aren't financially aware or forward thinking enough to be able to resist the spiral of debt - is it really fair to allow them to be preyed on by predatory lenders? Link to comment Share on other sites More sharing options...
galaxy-m Posted January 29, 2011 Share Posted January 29, 2011 Many people just aren't financially aware or forward thinking enough to be able to resist the spiral of debt - is it really fair to allow them to be preyed on by predatory lenders? 'arent financially aware' - they should learn the hard way then! bearing in mind that we aren't discussing children here but fully grown adults with a brain, and hopefully a calculator! there are many ways of becoming more financially aware including free newspapers and the internet (free from the library) so how anyone can be financially unaware in this day and age suprises me greatly! and its not preying - clients contact them asking for money, and their rates are clearly stated... if you dont have the common sense or general knowledge to be able to work out that 2500% is a tad on the high side, especially as the 0.5% base rate is always mentioned on the news, then you do deserve everything you get! Link to comment Share on other sites More sharing options...
Plain Talker Posted January 29, 2011 Share Posted January 29, 2011 Why on earth should they make it illegal? Do people not have a choice? Are they forced into taking these loans? No. 'arent financially aware' - they should learn the hard way then! bearing in mind that we aren't discussing children here but fully grown adults with a brain, and hopefully a calculator! there are many ways of becoming more financially aware including free newspapers and the internet (free from the library) so how anyone can be financially unaware in this day and age suprises me greatly! and its not preying - clients contact them asking for money, and their rates are clearly stated... if you dont have the common sense or general knowledge to be able to work out that 2500% is a tad on the high side, especially as the 0.5% base rate is always mentioned on the news, then you do deserve everything you get! Many people are financially illiterate, and only see the "just £5 a week" bit of the ads, not the small print, which says "To be paid for the rest of your natural life, and we also take your first-born child!" And yes I totally agree with EDN's comment, that usury should be outlawed. I pay no interest on my bank account, which is Shariah compliant, and I receive none, either. Link to comment Share on other sites More sharing options...
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