Money Before Payday - Argus investigation reveals loan companies charging 1700% APR - Argus Lite
Today The Argus highlights the case of a middle-aged disabled woman repaying £500 a month on an income of just £476. Its advisers slammed payday loans under which people can get cash for cheques lenders promise not to pay until their wages or salary comes through. Doorstep lender Provident Personal Credit offered The Argus a £200 cash loan to be repaid at £6 per week and a total repayment of £336. Every month she faces credit card bills of £120 a month, a bank loan repayment of £60 a month, as well as facing £70 a week payment to Greenwood Personal Credit and £10 a week to Provident. Mr Davies, manager of East Sussex Credit Union, said a whole range of different people come to the credit union with debt problems. Other lenders do not include administration and penalty charges in their APRs, have lower bad debt charges and do not have the expense of making 80 million home visits a year, and so comparisons with other credit options are misleading. Learn more
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