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Saturday, December 29, 2007

The Provident.

Shame on for this email, which is neither a great offer, nor anything about savings.

The Provy, those bullying, preying-on-the-poor, knocking-on-the-door loan sharks, have offered me possibly the worst terms for a loan ever.

Have a look at the bottom right,
*Example. Cash loan amount £300.
56 weekly repayments of £9
Total amount payable £504

183.2% APR

183.2% APR typical. So some people presumably get even higher rates!

Let's have a look. CCJs, poor credit history, been turned down before, renting a home, unemployed... yep!

So you're perhaps not in the best financial situation? How can you almost guarantee to make it a million times worse? Oh yes, borrow from the Provy! Borrow £300, pay back £504. And that, of course, is if you make every payment every week. If not... well, higher interest, increasing your 'loan' amount to cover missed payments... add a bit more to the end cost. You're already buggered, why not?

I am furious that this was sent to my email. I *hate* these people.

Now, a good organisation is Church Action Against Poverty. A Church group putting their faith and efforts to the good (unlike some).

Their Debt On Our Doorstep campaign
is a national campaigning organisation made up of local activists and public organisations. We aim to end extortionate lending and ensure universal access to affordable credit and other financial services. To this end our objectives are to:

* Publicise the extent and impact of extortionate lending on low income groups

* Lobby Parliament, assemblies and other decision makers to end extortionate lending

* Research and promote models of affordable credit

* Provide a platform for people on low incomes to comment on the impact of debt

We are part of a growing international movement for responsible lending and have been involved in the planning of a series of national conferences throughout Europe which culminated in the launch of a European Coalition for Responsible Lending in Brussels in 2006.

Debt on our Doorstep was the first organisation in the U.K to call for a 'responsible lending' duty to be placed on lenders, and this has since been introduced into the new Consumer Credit Act. We are expecting a consultation exercise on the requirements for lenders in the near future. Unfortunately, our campaign for interest rate ceilings to be introduced has not been successful, although the Government has pledged to keep this matter under review, and our work to bring about a competition commission inquiry into the Home Credit industry has recently brought about a real possibility for price caps in that market.

We are also working to develop local financial inclusion partnerships, and are calling for requirements to be placed on the banking industry to disclose, and then improve, the level of financial services available in low-income communities. In this respect, our work has been informed by the National Community Reinvestment Coalition in the U.S, with whom we are closely involved in our international work.

Debt on our Doorstep is also calling for excessive default charges, made by credit card lenders and banks to be refunded to borrowers - a total of £1.8 billion has been overcharged in the past 6 years for credit cards alone - and is working with the Bank Charges Action Group to recover these..

Good on them.

Also, if you're in financial trouble yourself, I can't recommend National Debtline too highly. They are a source of great advice and support, they don't charge anything (unlike so many of those companies who advertise on TV to help with your debts) and have helped me consistently over a long period.

As for, gmail rightly put their shit into my spam folder, where it will stay.


Claire said...

Very good advice and also can I recommend credit unions to anyone in a similar position- great for saving and loans that won't get you further into debt. For more info see: