Ridiculous Credit APR

**VRStu** · 04-07-2008, 22:52

I saw this as a scrolling banner on another website, couldn't believe my eyes when I saw it!!

Kaiserb_uk · 04-07-2008, 22:56

Reminds me of the Spitting Image sketch...

"We coudln't afford all our loans and mortgage, so we took out a loan to pay them off, then we couldn't afford that loan, so we took out a loan to pay THAT one off, then we couldn't afford the repayments on that one....now we owe 3.1 million pounds..."

devonutopia · 04-07-2008, 23:01

They've mailshot'd me with the same bloody offer! I did

at the APR % though.

fatty5000 · 04-07-2008, 23:04

Yeah but when you have knocked everyone else who you gonna call, and there's a very high chance that you will knock Provident, they have every right to charge that much. If nobody knocked them they wouldn't have to charge as much to cover the 5hit.

Kaiserb_uk · 04-07-2008, 23:06

Quote:

Originally Posted by fatty5000

Yeah but when you have knocked everyone else who you gonna call, and there's a very high chance that you will knock Provident, they have every right to charge that much. If nobody knocked them they wouldn't have to charge as much to cover the 5hit.

They're not offering some sort of public service - they are profiteering off of poor people's greed and stupidity.

fatty5000 · 04-07-2008, 23:09

Quote:

Originally Posted by Kaiserb_uk

They're not offering some sort of public service - they are profiteering off of poor people's greed and stupidity.

Name a large international business that isn't (Co-Op not allowed as an answer)

Makefish · 04-07-2008, 23:23

That is a very bad rate, almost as bad as your spelling mate!

Edit: Couldn't stand it anymore so changed it

Kaiserb_uk · 04-07-2008, 23:35

Quote:

Originally Posted by fatty5000

Name a large international business that isn't (Co-Op not allowed as an answer)

True, but my point is more that in response to your statement "who you going to call?" the reason it's called a 'credit crunch' is because people have become so used to spending money they don't have...if you've run out of money perhaps the answer ISN'T another loan....

fatty5000 · 04-07-2008, 23:39

Quote:

Originally Posted by Kaiserb_uk

True, but my point is more that in response to your statement "who you going to call?" the reason it's called a 'credit crunch' is because people have become so used to spending money they don't have...if you've run out of money perhaps the answer ISN'T another loan....

I totally agree

Borrow your way out of the 5hit, it's the way of the world I'm afraid, besides you don't have to payback Provident ....................no-one does do they ????

Blade404 · 05-07-2008, 03:10

I've seen worse... infact I used to work for the company that offered them.

corradoboy · 05-07-2008, 03:57

2334%

Very short term loans have to carry a profit somewhere. They make a tiny bit of sense when you look at their examples, especially when compared to an unauthorised bank overdraught....

147359739444%

Captain Sisko · 05-07-2008, 08:41

183%

I did read about one guy looking for a loan to buy a BMW.
One company did but with a stupidly high interest rate (Do people actually read stuiff before they sign for it)

Also if you go on moneysupermarket.com and have a look at loans you see the interest rate varies.

Good credit profiles - under 10% APR
Fair and poor - up to 64% APR on a 7k loan with a 3 year repayment period.

**mannyo** · 05-07-2008, 09:09

I have a current personal loan took out 3 years ago with my bank, APR on my loan is 3.9%.

I can understand the high rates, even today a typical store card is still around 30% apr or higher.

devonutopia · 05-07-2008, 10:09

3.9 is below the base rate!

Last time, I got 6.9% which I thought was pretty good.

daiking · 05-07-2008, 10:22

3 yrs ago the base rate was 4.75% and then dropped to 4.5% in Aug 05 but they could offer those sorts of rates as the carry trade and debt securitization was in full flow - you could get intro mortgage rates below that (although they tried to get their pound of flesh in other ways).

Last time I borrowed like that I paid 7.9% on the loan but then they gave me 25% of the interest I paid back at the end of the term

Don't know why they just didn't charge 6ish% in the first place.

As to the Provi-loans, well you can't legislate against stupidity. If through little fault of my own, it meant the difference between feeding my family and starving, I would take out a 183% APR loan. If you needed money for fags and booze though, you'd be stupid to do it, no sympathy there.

There was one of those whistleblower programmes on the BBC a couple of years ago and the Provi did use a number of dodgy tactics to increase the interest. Something to do with takking out new loans to pay off the existing ones. You eneded up paying twice the interest you should have - or something like that. They're mentioned in the press release - "rollover loans"

BBC - Press Office - Whistleblower on Yes Car Credit

04-07-2008, 22:56	#2
Kaiserb_uk Why I oughta... Join Date: Nov 2004 Location: Leighton Buzzard Posts: 1,284 Thanks: 7 Thanked 39 Times in 33 Posts	Re: Rediculous Credit APR Reminds me of the Spitting Image sketch... "We coudln't afford all our loans and mortgage, so we took out a loan to pay them off, then we couldn't afford that loan, so we took out a loan to pay THAT one off, then we couldn't afford the repayments on that one....now we owe 3.1 million pounds..." __________________ MCSA:M CompTIA:Security+ Mods:Nearly enough My last.fm page

04-07-2008, 23:01	#3
devonutopia Mongreller Join Date: Apr 2003 Location: Ooo-ar, Oi be from Devonshire Posts: 29,221 Thanks: 60 Thanked 288 Times in 234 Posts	Re: Rediculous Credit APR They've mailshot'd me with the same bloody offer! I did at the APR % though. __________________ Jason - Mongrel owner! WOOOOF! Grrrrr Custom Fabia Bonnet Lifter Kits - £45! Click Me. See the mongrel's 260bhp Dyno Video!

04-07-2008, 23:04	#4
fatty5000 Why So Serious Join Date: Jan 2006 Location: "What" ...What ain't no god damn coutry Posts: 4,764 Thanks: 213 Thanked 141 Times in 127 Posts	Re: Rediculous Credit APR Yeah but when you have knocked everyone else who you gonna call, and there's a very high chance that you will knock Provident, they have every right to charge that much. If nobody knocked them they wouldn't have to charge as much to cover the 5hit. __________________

04-07-2008, 23:23	#7
Makefish Ex-Moddy Join Date: Jul 2005 Location: Hampshire Posts: 7,994 Thanks: 152 Thanked 227 Times in 168 Posts	Re: Ridiculous Credit APR That is a very bad rate, almost as bad as your spelling mate! Edit: Couldn't stand it anymore so changed it __________________ Black magic Octy II vRS MY2008 with Maxidot ~ Xenons ~ Cruise ~ Light Assist ~ Dual Zone Climate Control ~ Rain Sensing Wipers ~ MFD2 Satellite Navigation ~ VAG Bluetooth Phone Kit ~ Milltek Exhaust with 2.75" Downpipe ~ EVOM Ram Air Intake ~ Nuespeed Shortshifter ~ Eibach Rear ARB ~ Koni FSD Dampers ~ Eibach Springs ~ Forge Front Mounted Twintercooler ~ Nuespeed Hi-Flo Intercooler Pipe ~ Nuespeed Hi-Flo Turbo Outlet Pipe ~ Eurojet PCV Valve ~ Forge DV ~Autotech Hi Volume Fuel Pump ~ Nuespeed Torque Arm Insert ~ NGK Iridium Spark plugs ~ REVO Stage II+ Software ~ Matt Black Viper Stripes! Last edited by Makefish; 05-07-2008 at 10:08.

05-07-2008, 03:10	#10
Blade404 ASBO Join Date: Jan 2006 Location: The land of smoke & mirrors Posts: 3,173 Thanks: 53 Thanked 78 Times in 51 Posts	Re: Rediculous Credit APR I've seen worse... infact I used to work for the company that offered them. __________________ Smoke me a kipper, I'll be back for breakfast! Ford Focus ST-2 in Performance Blue For information about joining the briskoda.net folding team click here..

05-07-2008, 03:57	#11
corradoboy Briskodian Join Date: Jan 2007 Location: West Yorkshire Posts: 616 Thanks: 6 Thanked 42 Times in 29 Posts	Re: Rediculous Credit APR 2334% Very short term loans have to carry a profit somewhere. They make a tiny bit of sense when you look at their examples, especially when compared to an unauthorised bank overdraught.... 147359739444% __________________ Diesel - Goes like stink

05-07-2008, 08:41	#12
Captain Sisko Friskodian Join Date: Nov 2007 Location: Deep Space 9 Posts: 1,867 Thanks: 39 Thanked 111 Times in 108 Posts	Re: Rediculous Credit APR 183% I did read about one guy looking for a loan to buy a BMW. One company did but with a stupidly high interest rate (Do people actually read stuiff before they sign for it) Also if you go on moneysupermarket.com and have a look at loans you see the interest rate varies. Good credit profiles - under 10% APR Fair and poor - up to 64% APR on a 7k loan with a 3 year repayment period. __________________ 98 Felicia 1.6 GLXI 109000 miles

05-07-2008, 09:09	#13
mannyo BRISKODA Staff Join Date: Nov 2002 Location: Stevenage Herts. Posts: 10,758 Thanks: 26 Thanked 266 Times in 249 Posts	Re: Rediculous Credit APR I have a current personal loan took out 3 years ago with my bank, APR on my loan is 3.9%. I can understand the high rates, even today a typical store card is still around 30% apr or higher. __________________ Manny 2005 Octavia 2.0TDi Elegance combi my skoda website http://www.octaviars.co.uk Join the briskoda.net folding team click Here for more info

05-07-2008, 10:09	#14
devonutopia Mongreller Join Date: Apr 2003 Location: Ooo-ar, Oi be from Devonshire Posts: 29,221 Thanks: 60 Thanked 288 Times in 234 Posts	Re: Ridiculous Credit APR 3.9 is below the base rate! Last time, I got 6.9% which I thought was pretty good. __________________ Jason - Mongrel owner! WOOOOF! Grrrrr Custom Fabia Bonnet Lifter Kits - £45! Click Me. See the mongrel's 260bhp Dyno Video!

05-07-2008, 10:22	#15
daiking DILLIGAF? Join Date: Mar 2006 Location: manchester Posts: 2,091 Thanks: 59 Thanked 68 Times in 56 Posts	Re: Ridiculous Credit APR 3 yrs ago the base rate was 4.75% and then dropped to 4.5% in Aug 05 but they could offer those sorts of rates as the carry trade and debt securitization was in full flow - you could get intro mortgage rates below that (although they tried to get their pound of flesh in other ways). Last time I borrowed like that I paid 7.9% on the loan but then they gave me 25% of the interest I paid back at the end of the term Don't know why they just didn't charge 6ish% in the first place. As to the Provi-loans, well you can't legislate against stupidity. If through little fault of my own, it meant the difference between feeding my family and starving, I would take out a 183% APR loan. If you needed money for fags and booze though, you'd be stupid to do it, no sympathy there. There was one of those whistleblower programmes on the BBC a couple of years ago and the Provi did use a number of dodgy tactics to increase the interest. Something to do with takking out new loans to pay off the existing ones. You eneded up paying twice the interest you should have - or something like that. They're mentioned in the press release - "rollover loans" BBC - Press Office - Whistleblower on Yes Car Credit Last edited by daiking; 05-07-2008 at 10:25. Reason: linky

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