posted on Feb, 11 2011 @ 06:02 PM
I remember a while back, I got a job but didn't have a bank account and didn't have enough ID to get one.
I looked online and found a top up VISA card similar to the one's displayed
While the use of the card enabled me to:
- pay wages into it
- use online
- pay on card
The downsides were the charges...
- pay wages into it = charge
- pay online = charge
- take money out from cash machine = £1.50 per transaction
- pay on card = charge
I had to go to the cash machine on 4 consecutive days and take £300 out to get the full £1,200 so it only charged me £6, otherwise I'd take £10
here, £20 there and before I knew it my charges were totaling stupid amounts.
These people pray on the vulnerable and often work out to cost more than loan sharks.
Here in the UK, one of the biggest lenders is Provident.
Representative example: £300 loan repayable over 52 weeks 52 weekly payments of £10.50 Rate of interest 82.0% p.a. fixed; Representative 272.2%APR
Total Amount Payable is £546
That same company for a £300 loan is:
£300 @ 14 weeks - £420 1068.5%
£300 @ 23 weeks - £448. 50 545.2%
£300 @ 31 weeks - £465 365.1%
These companies make so much money on interest that they can pray on the vulnerable. They specifically target poor areas and yes I do agree, it should
be banned or certainly regulated to an acceptable level.