Sheffield people trapped in debt.

[L00b]

That can't be correct.

It is (regardless of whether x1.33 or x2.33 applies) , depending on the loan (or 'credit resource') type

 

Respective usury thresholds are set for various types of loans and amounts. The 133% ratio or factor is a standard (the "usury factor" or somesuch), but the APRs to which it is applied are not (who would take on a mortgage at 20%? )

 

The 6% example is e.g. for a mortgage. Look at the top part of the table in my link ("Prêts aux particuliers entrant dans le champ d'application des articles L.312-1 à L312-36 du code de la consommation (prêts immobiliers)" = mortgages, max fixed rate is 6.23%, max variable rate is 5.61%).

 

France has credit resources at around 20-21%.

 

A credit card APR will be around 16% to 21%. Look at the second (main) part of the table in my link ("Prêts aux particuliers n'entrant pas dans le champ d'application des articles L312-1à L312-36 du code de la consommation (crédits de trésorerie)" = consumer finance, overdrafts, credit cards, etc. which varies according to type and amount, anywhere between 10% and 21%).

 

Making sense?

[upinwath]

"They are forced into much more expensive ways of borrowing simply to afford day-to-day necessities."

 

Let me see. They can't afford to live but take out loans at daft rates that they can't afford to repay so they can live.

Poor household management I think.

 

The rather silly BBC link also suggests;

they cannot borrow from the high-street banks.

 

So the banks are expected to give loans to people who can't

afford day-to-day necessities."

 

How do they expect to pay back the banks if they can't afford to live without the loan in the first place?