Loans

[Toureman]

I had a leaflet from Provident personal credit popped through my letterbox today offering personal credit no rates mentioned, as it had a web address I had a look, the apr for a �300 pound loan is 177%apr, total payback over 55 weeks, �9 a week, �495.

Is anyone stupid enough to get loans like this?

[Oneeyedvic]

What excatly makes it stupid? Is it the APR?

[Loosehead]

Yes, that's why provident exist. They pray on the "have it now" menatlity of people with poor credit rating. In your example they could save �10 a week for 30 weeks and have the �300 with no interest but they don't because the sorts of people that borrow have little money and even less discipline.

[jason1980]

I think most people less well off borrow it at times for their kids birthday or christmas presents because it's easy to take out and you get your money or vouchers instantly.

But the 'sorts of people' that borrow these loans don't have various bank accounts with �500 overdrafts, 6 different credit cards and cars on finance. Even though they may take out these loans, they're still more debt free than the rest of us...

[gammaray]

Are they related to Provident insurance? It may be from a loan shark using the word Provident in the title to gain trust.

It would only take you 34 weeks to save up �306 at �9 per week!!

[Toureman]

Hi gammaray,

Provident Personal Loans, Colonnade, Sunbridge Road, Bradford, BD1 2LQ. Nothing about Provident Insurance on the leaflet. www.provident.co.uk

[Whickerman]

They're the friendly face of moneylenders, and charge huge interest to people in dire straits.