Unscrupulous lenders
23 January 2007, 08:12 PM
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Unscrupulous lenders
I was looking at moneysupermarket.com and after a couple of threads on here, I thought I'd see what the loans were going for.
Scary.
If you have a good gredit profile, you can borrow 10,000 over 5 years at an APR of 5.9%. This gives monthly repayments of 192 and a total payback of 11,520.
If you have a poor credit profile, there is a lender on there willing to lend you the same amount over the same term at an APR of .....
65.2%
That's monthly repayments of 465
and it gets worse when you work it out....
Total repaid -
27,900
Lending money at those rates to those that can least afford to pay it back seems a bit unscupulous to me...
Scary.
If you have a good gredit profile, you can borrow 10,000 over 5 years at an APR of 5.9%. This gives monthly repayments of 192 and a total payback of 11,520.
If you have a poor credit profile, there is a lender on there willing to lend you the same amount over the same term at an APR of .....
65.2%
That's monthly repayments of 465
and it gets worse when you work it out....
Total repaid -
27,900
Lending money at those rates to those that can least afford to pay it back seems a bit unscupulous to me...
23 January 2007, 08:51 PM
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23 January 2007, 08:53 PM
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Borrow £20k at silly percent interest, go bankrupt after you've spent it and another couple of loans worth, no problem!! 
Even if a lot of people do that, the lenders will still turn a profit from the ones who do manage to pay (for a couple of years payments at least) for a while when they're charging that sort of interest.
Even if a lot of people do that, the lenders will still turn a profit from the ones who do manage to pay (for a couple of years payments at least) for a while when they're charging that sort of interest.
23 January 2007, 09:30 PM
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