# Loans for people with poor credit rating



## Exclaim (3 Nov 2010)

Has anyone taken a loan out like this ? Any advice ?


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## Protocol (8 Nov 2010)

Don't.

Is it not like giving an alcoholic more drink???


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## Time (9 Nov 2010)

The usual suspects have gone out of business. They got burned big time.


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## TheShark (9 Nov 2010)

Provident will give anyone a loan.
http://www.providentpersonalcredit.ie/
But at 157% APR you would be crazy to touch them.


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## Crugers (10 Nov 2010)

Or WONGA.com who have a typical(sic) APR of *2689%* (And eh no, there is no missing decimal point!!!)


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## Graftgirl (17 Dec 2010)

TheShark said:


> Provident will give anyone a loan.
> http://www.providentpersonalcredit.ie/
> But at 157% APR you would be crazy to touch them.



"Or WONGA.com who have a typical(sic) APR of 2689% (And eh no, there is no missing decimal point!!!)"

These people should be put out of business in my view, they prey on the vunerable, people who need money fast and have no where else to turn.
I thought the APR from Provident was shocking, I did not realise there was a company out there quoting an APR of 2689%
I would be concerned at christmas time for people who are struggling taking the quick fix route and borrowing from these "Cowboys" makes me boil if I'm honest..
Can't believe they are financially regulated too?????
I believe that when you borrow from Provident that if you repay them early(which I am told they don't really like) you are still liable for the full interest quoted at the beginning of the loan.
There is a man that calls door to door in the area that grew up in, I remember him calling every friday when I was a child to people on the street where I lived and I was amazed a few weeks ago when calling to a friend that lives there to see him still calling door to door.
I know everything has it's place but I bet that there are people who do not fully understand what they are signing up for and are just deperate to cover the cost of christmas, a Communion, a fill of oil etc and then become beholding to these loan sharks and they are "Loan Sharks" in my opinion, thats some mark up on profit to get 2689% back on what you loan out.. God it makes me boil


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## JoeB (17 Dec 2010)

Well, while the APR are huge, Wonga at least provides a lot of info on the APR, at..
http://www.wonga.com/money/is-this-apr-expensive

They explain that if other comapnies were forced to quote yearly rates then you'd be shocked too... for example
rent a video = 1,000 per year,
rent a taxi cab = 876,000 per year
rent a hotel room = 90,000 year
(not my figures, from Wonga)

They also claim that the APR system isn't suitable for a short term loan product, as the interest is compounded in the calculation, whereas with the real product the money is paid back quickly, before the interest compounds. They explain that the APR increases as the term of loan shortens, leading to huge APRs on short term loans.


Is a pawn shop better value?, or a loan shark?

The companies provide a short term loan service, i.e 100 for 5 days, repay 110.. or 100 for 15 days, repay 121. This might suit some people who need to pay something. I agree that if used unwisely then people will get into trouble, and perhaps these companies do prey on people without much choice or financial wherewithall.. but caveat emptor applies.


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## jim (9 Feb 2015)

Does anybody know what the exact implications are for a borrower who connot make repayments. I know someone that has borrowed 400 over 52 weeks from Provident and I suspect he is unable to make any repayemnts.

I understand that Provident engage a 3rd party debt collector but I would really like to know what this entails for the borrower and what the overall cost could potantially be.

Thanks in advance,
Jim


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## Gerry Canning (9 Feb 2015)

Provident got hit for a large fine here in Donegal, for their antics.

From what I gather they had a (heavyish) pay me back call pattern.
I believe they do not add on extra penal interest onto their (expensive) loan .
I expect the 3rd party to call but he/she should in no way threaten.

On loans, at Providents interest rate there is very very little likelihood of them going legal and/or additional costs.
If they are not paid back there is very little they can do.

Provident are at least somewhat Regulated , I fear for those in the clutches of unregulated Moneylenders.


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## jim (9 Feb 2015)

Thanks Gerry - appreciate your response.

Yeah I suppose because they are regulated its some sort of assurance. I discovered as well that dont secure the loan on assets so thats also a relief. Just wasnt sure about what their collection practices would be like in the event of a default.


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## RichInSpirit (10 Feb 2015)

The credit union used pride itself on lending to people that borrowed from money lenders. Now they have signs up telling you that they look up the ICB and need 3 months bank statements. It would be easier to get a loan off the bank now.


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## Gerry Canning (10 Feb 2015)

RichInSpirit said:


> The credit union used pride itself on lending to people that borrowed from money lenders. Now they have signs up telling you that they look up the ICB and need 3 months bank statements. It would be easier to get a loan off the bank now.


Rich in Spirit..
The Credit Unions are correct in getting ICB, it gives them a view on the extent of applicants previous borrowings.#
If applicant has no ICB and no Bank account and are caught by a Money Lender, they are the sort of people who are not (serial) borrower or serial non payers and C U,s may look at them.
They normally are financially naaive.


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