Banks - gotta love 'em

CJC

I had a letter from my bank this morning offering mea pre-approved loan of up to £3,000. Hmmm, I thought, bit of cash could be useful to clear my credit card. Reading further I find this loan was being offered at 22% APR or slighty more than my credit card - ouch!

So, lets get this straight banks are paying savers around 1% and lending money out at 22%. I wonder how many people even more hard up than I are getting this offer and taking on extra debt at exorbitant rates. Moreover, when challenged to justify their credit card rates, banks usually trot out the excuse that cards are only supposed for short term debt and not to carry large balances but here they are offering loan term loans at even higher rates.

As Brecht said, "It is easier to rob by setting up a bank than by holding up a bank clerk. "

SeanyBoy

CJC wrote: »

As Brecht said, "It is easier to rob by setting up a bank than by holding up a bank clerk. "

possibly one of the best quotes i have heard!

blobbyh

Well how about the Vanquis credit card, Chris? Currently standing at 39.9% APR (though as high as 54% a couple of years ago when I first saw it), it's advertised as the card that can "repair your credit rating" - how? - and clearly targeted at the less well off. There's also a Virgin one which advertises itself on Facebook and milks the same pits of despair - and there are some still thinking Richard Branson is a caring geezer.

You have to hand it to the government for finding a way to legalise loan sharking. But then as long as they can take a cut of the profits, I suppose they'd legalise cannibalism as long as Tesco endorsed it...

SeanyBoy

blobbyh wrote: »

Well how about the Vanquis credit card, Chris? Currently standing at 39.9% APR (though as high as 54% a couple of years ago when I first saw it), it's advertised as the card that can "repair your credit rating" - how? - and clearly targeted at the less well off. There's also a Virgin one which advertises itself on Facebook and milks the same pits of despair - and there are some still thinking Richard Branson is a caring geezer.

You have to hand it to the government for finding a way to legalise loan sharking. But then as long as they can take a cut of the profits, I suppose they'd legalise cannibalism as long as Tesco endorsed it...

Dare i mention the provident?

SeanyBoy

SeanyBoy wrote: »

Dare i mention the provident?

189.2% APR... however only on small amounts but again directed at people who dont have a good enough credit rating to borrow money in the first place!!

CJC

Another nasty little trick they do is giving out 'credit card cheques' which allow you to make cash withdrawals on your card six months interest free. Great if you've no balance on your card and can pay off what you've taken out on the cheque before the six months is up. Otherwise, you're stuck with the cash you've taken out staying on your CC balance charged at the higher cash withdrawal rate.