Loans are being advertised on TV and the internet with a 4214% interest rate!
It is outrageous that companies are allowed to charge this amount in interest and outrageous that they are permitted to advertise on national television and the internet.
I saw an article in the Enfield Advertiser where a lady who was loaning vulnerable people money was arrested and sent to trial for running an illegal money lending service, she was charging interest rates of 10% no where near the rates that these legal money lenders charge.
The only people that will apply for these loans are those that are desperate or the, uneducated.
There are 2 issues that need to be addressed:
- the amount of interest that can be charged should have a limit or be capped
- legal loan sharks should not be allowed to advertise on national TV or on the internet
I can imagine that quick money could appeal to women with young families at home who will see these advertsas a way of getting them out of immediate financial problems; but will eventually lead them into misery trying to repay these ridiculously high repayments.
I will now look into the financial rules and try to get this debated. Watch this space!