I love Argos-they sales cheap good- but I heard this morning that they are launching a new store card...call 'Easy Shop' in partnership with Provident Faniance and they come up with a card for the crunch period - you know you want to spend...but you can't get credit. So here is the solution - the card has 227% APR.You borrow £100 and pay £35 for interest if paid back over a year.
Store claims it isn't selling enough and end up like another Woolworths with hawkish and worried banks.
I though the whole lesson on the credit freeze is curb spending and if need be go on DMP,IVA or Bankrupt. Instead what do we have here - a respected store lending irrresponsibly. Now I would normally would say the buck stops with the debtor with Bank loans and CC. But since this is Argos and they have said they are having trading problems.Do we want to create more indebted individuals.
Turning credit taps off by legit lenders seems to be so hard.The extend of the need for more credit on top of credit is self serving. I cannot see things getting better for UK consumer PLC
I heard about this today too and I was equally appalled.
The fact of the matter is that there always has been and will always be companies offering credit like this. They lend to the most needy and desperate section of our society who are unable to get credit elsewhere. They justify their high interest rates as, due to the type of person who will take up the offer of credit, their risk of not getting paid back is very high.
Kind regards, Elizabeth Pywowarczuk, Insolvency Practitioner.
If you would like me to advise you about an IVA and if appropriate propose one for you, please visit my website at www.liberta.uk.com
Unfortunately the whole of the UK plc economy relies upon consumer spending, and if consumers do not spend then we really will be heading for a deep recession.
Whilst I do not agree with high APR lending, it is important to understand that individuals in serious debt still represent a very small proportion of the overall population.
I wonder how many struggling people will get one of these in the months up to Christmas.........
The Provident will lend to anybody but the interest is very high, I used to know a girl who was always getting money from them and it was a vicious cycle she could not seem to get out of.
She also used to get everything for the house on weekly payments like carpets, tv's and all sorts.
Sadly I can see Provident/Brighthouse and all these pay day loan shops making a fortune in the comming months.....
Be positive & look after yourself, there are more important things in life than debts....
I can remember Size 5 a few months ago making a valid point about these types of lenders, in saying that notwithstanding the interest is very high, they have traditionally provided a very good service for relatively low income families over a number of years - almost becoming part of the community in deprived areas of the country.
I'm not saying that this is right or wrong, but there has to be responsible borrowing as well as responsible lending - and it is not always the creditors fault. I absolutely councel, however, that when customers are struggling, there ought to be more understanding from creditors in a practical way to try an help their customers work through their difficulties.
I think its ok if you borrow what you can afford and can pay it back.
But the friend I knew was a single mum of two in difficult circumstances and they do not check if she can afford to pay these loans back, I know ultimately the responsibility was hers to borrow what she could afford to pay back. But when her tv broke that was added on another loan and it all spiralled and left them with very little to live on the majority of the time.
I really do think they should get people to do something similar to an income and expenditure to check they can afford the repayments, as as you say they are dealing with the lower income families.
Be positive & look after yourself, there are more important things in life than debts....
My SIL and MIL (God rest her soul) swore by the Providential. They've used them for years. Borrow a little. Lady comes round every week. Pay it back. Borrow a bit more. Melanie described it exactly, she is like part of the community!
I absolutely agree Emma - no one should lend money without checking that there is a realistic prospect of repayment. I can remember by Grandma talking about the Provvie man - so they have been around for years.
And in the old days, before women really went out to work and earned their own money, sometimes it was their only change of getting a new dress or pair of shoes! How times change - my hubbie complains now that I don't give him enough shopping money!
Can I just say that I had one of these loans once and never again. I had crashed my car into a barrier, trying to avoid a red light jumper. I needed my car in the worst way as I was moving house. I didnt have the money to fix the car, it was just terrible timing
A freind recommended her to me. I paid every week for nine months until the brown stuff and all his mates hit the fan. She was not very friendly at all, she made my life hell, staring at me, threatening me with court. They are not so friendly when you cant pay them back. Having said that, they work on a self employed basis, usually they lend out £100 to £200 pounds at a time, I had £1000. I didnt really need that much but it took the pressure off while I was moving. She did ask me what I earned and said I could have that much, so they must do some checks. Never again would I use this kind of thing.
I can see why people use them. The position I have been in, in the past few months could have easily led me to taking one of these loans, and the only reason I havn't is because of this forum.
It's so easy to get caught out and it's such a shame that people have to use these types of loans at such a robbery APR, but these companies know that people in desperation will resort to borrowing like this.
I will not get one of these loans, I would rather go without
Last edited by LoneRanger on Tue Oct 28, 2008 9:12 pm, edited 1 time in total.
And lets not forget of course, that as well as the legalised high interest loan companies, there are still the illegal loan sharks who charge extraordinarily high interest rates and pray on the very low paid, or on benefits who will be desperate for money at this time of year.
They may try and get rid of them, but as long as people are willing to pay the interest,they will be around.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Emma - he is a far better shopper than me. One of those rare breeds who actually prods and pokes all of the veg to see if it is fresh, and packs the shopping bags into various categories - dairy in one, meat in another, tins in another - and woe betide anyone who puts washing powder in with food.
Me... Well as you can probably gather shoves it all into the same bag, so consequently we do not go together very often!!!!
The illegal ones tend to prey more on the people in social housing who are on very low income and have a few kids, and lets face it, this time of year they will be wondering where to get money from to buy the kids presents.
It's not as prevalent as it used to be, but they are still out there.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
