Unbelievable APR rates

[Dee Sa]

I have just recieved a mail shot from Provident and they state that their typical APR is 183.2 %.
how can they be allowed to legally charge this ? surely the authority concerned should shut them down ? they boldly print to borrow �300 will cost you �504.
its outrageous, I have used their reply envelope to say take me off your mailing list forever.
what do others think ? they obviously pray on the less fortunate.

[terambulan]

How much would you led me your money for?

[R1Geezer]

they can charge it because the world is full of brainless idiots who pay it!

Provident target total tw&ts who haven't the sense they where born with.

[bednobs]

thats not unbelievable - have you ever looked at "payday" loans? their apr is im sure in the 1000's

[jackthehat]

If anyone borrows money from such a company and agrees to pay this APR rate then it is an entirely legal contract between the two parties.

A Contract doesn't have to be fair.............it has to be legal. The 'morality' of such a contract, however, is an entirely different matter and in unfortunately not taken into consideration by the law.

These companies specifically target those who are unable to approach the more reputable financial institutes for help.

[Ethel]

Exactly so. Their customers cannot get loans from banks, they cannot get credit cards or have an overdraft because they are such a big risk.

Provident offset the risk by lending relatively small amounts of money and having a short repayment term with a high APR.

It is not outrageous - they are catering to a section of society that can't get help elsewhere. They give cash loans of �50 to �500 - �9 per week for a loan of �300.

The only alternative their clients have is to borrow money from people who are likely to break your knee caps if you miss a payment.

I have just looked at their website. The company is to be applauded. The very first page in big bold characters clearly states the APR - they are not attempting to deceive and make the charges so clear there can no possible misunderstanding

http://www.providentpersonalcredit.com/

[legrande758]

Definitely lower apr than mad jake the loan shark , and just as easy to get a loan from them when youre potlesss and in the gutter.

Its a high interest loan for high risk customers on low incomes im afraid.
But without the risk of a kneecapping.

Unless youd prefer a loan shark ??