Sunny Credit. Caution - Rant alert.

[Palfrem]

In our area this mob are doing a lot of TV advertising.

Mrs P even had a letter from them today.

Turns out if you borrow £350 for 12 months you repay.....










£1267.80! A £917.80 charge for credit or 1971% APR!


How can this be allowed? It's preying off those least able to afford it.
I hope the Directors of Think Finance UK Ltd can sleep a t nights.


Rant over!.

 

[markjay]

The government has plans to regulate the Pay Day loan industry and Sub-Prime lending in general.

However the counter argument is that the high APR is proportional to the risk involved in Sub-Prime loans, and that these loans have a high default rate.

The lenders claim that as result their profits are in fact quite moderate, with the high APR paying for the bad debt, most of which is uncollectable anyway.

If this is true, then 'regulating' the Sub-Prime finance industry will simply mean that the poorest people in our society will lose their only opion for raising finance, albeit an expensive option.

I don't have a view either way, however I learnt all this from a retired gentleman whome I met - apparently he started a Sub-Prime loan business as a charitable enterprise - to provide sources of finance to poor people.

The interests rates that his organisation charges are well above those of banks or other established credit providers, reflecting the high risk - and yet it is still considerably lower than your average Pay Day lender.

The obvious difficulty is that most lenders actually do this for financial gain, and might stop altogether is forced to reduce their profit margins. Will this be better or worse for poor people?

 

[neilrr]

Don't like the interest rate?

Don't borrow from them!

What could be simpler?

 

[Spin_bowler]

Don't like the interest rate?

Don't borrow from them!

What could be simpler?

Desperate people who get themselves into dire straits do stupid things, so can't/don't always make the informed choices others can/do. Pay-day lenders and the like prey on and profit from their vulnerability.

I think they're scum and should be legislated out of business.

 

[def90cars]

I remember a story on the BBC news (i think) where some local loan-shark woman was arrested and she charged as much 250% APR..(said with disgust by the news reader)..... clearly they ignore the 2000%+ APR from "legitimate" companies.

 

[neilrr]

Yes indeed.

I was desperately hungry the other day & very nearly bought a pack of salami form the local supermarket. But before I bought it, being a shrewd & experienced shopper, I checked the price & noticed it was £3.30 for 100 grms or £33 a bleeding kilo!!!!

Luckily, I put it back on the shelf & bought some cheese, thus saving me from having to write my local MP a letter demanding a Parliamentary inquiry into the pricing of cold cuts & her a considerable amount of bother when she's particularly busy kicking the Police Federation's ar5e all over town, figuring out a way to become more UKIP & working on her plan to be the next Tory leader.

Phew.

 

[developer]

Yes indeed.

I was desperately hungry the other day & very nearly bought a pack of salami form the local supermarket. But before I bought it, being a shrewd & experienced shopper, I checked the price & noticed it was £3.30 for 100 grms or £33 a bleeding kilo!!!!

Luckily, I put it back on the shelf & bought some cheese, thus saving me from having to write my local MP a letter demanding a Parliamentary inquiry into the pricing of cold cuts & her a considerable amount of bother when she's particularly busy kicking the Police Federation's ar5e all over town & working on her plan to be the next Tory leader.

Phew.

Bugger - I spend 20 seconds of my life reading this .

 

[neilrr]

And more C & Ping it to post a reply.

Why bother if it's not to your liking?

Can we look forward to you commenting on it on any other forums?

 

[grober]

This is Shylock territory without the anti semitism . First thing is that many of people who find themselves in these situations will be barely literate [ to read and understand any advert] or numerate [ able to calculate what an APR of 1971% actually means] their lack of numeracy already illustrated by the fact that they have got to a situation where they actually need a pay day loan in the first place . So pay day loans = high risk finance both for the borrower but also for the lender-- on balance probably a good idea to "actively" discourage them. Bit like the Merchant of Venice really.

 

[krisby]

Whats ironic is that a high risk loan makes it even more unaffordable and even more high risk.

I too received a letter from Sunny with the same example loan this week, I will be demanding how they got my information.

I noticed a contradiction on their letter too, they gave the example Palfrem posted above, yet in the main blurb it says loans are for no longer than 5 months, not 12 months. So all of a sudden that £350 loan is looking even more filthy.

 

[def90cars]

And Jesus entered the temple and drove out all those who were buying and selling in the temple, and overturned the tables of the money changers and the seats of those who were selling doves. And He said to them, "It is written, 'MY HOUSE SHALL BE CALLED A HOUSE OF PRAYER'; but you are making it a ROBBERS' DEN."

Anyway.....