My sister in law is a single parent on a council estate who has been totally ripped off by these people. They knock on the doors of people they suspect will struggle to obtain loans elsewhere, or may not have time to do so, and get them to sign up for loans at 177% APR !!! I know she has to accept some responsibility, but the premiums are so high, we are going to have to organise her a new loan with a longer term and lower interest rate so she can afford the monthly premiums. In the past, when she is near to completing paying off one loan, they turn up on her doorstep and offer her another, no affordability checks, no credit checks, etc, they take their NI numbers so if they stop paying, they can get the money straight from their salaries. I would really like to complain about these people, but I looked them up on the internet and as far as I can see they aren't even regulated! Has anyone else had any experience with these 'Lenders'? Any advice greatly appreciated.
2006-11-13 00:24:37 · 7 answers · asked by Anonymous in Business & Finance ➔ Credit
Jon B- Thanks, but don't you agree that the 'break your legs' lenders are the next step for families when they can't afford the monthly repayments to the Provident and the money starts being debited straight from their wages?
2006-11-13 00:40:20 · update #1
Thecoldvoiceof reason- Thanks for your reply, my sister in law was told by the provident agent that their NI number would be used if ever she stopped payments so they coudl take the money straight from her wages. I will double check this with her though, thanks.
2006-11-13 00:48:39 · update #2
I think Provident are regulated.
But yes the interest rates are beyond a joke.
I have never been tempted and have written to authorities about this rip off company sending me unsolicited mail...
Guess what......
yes not heard a thing....no response.
2006-11-13 00:29:46 · answer #1 · answered by Trevor J 2 · 0⤊ 0⤋
1
2016-09-28 03:21:49 · answer #2 · answered by ? 3 · 0⤊ 0⤋
Yes they are regulated and what they do is completely legal, they offer loans regardless of status and as such charge sky high interest rates for the priviledge.
The interest rates they charge are clearly marked in the literature they hand out so you can complain all you like but unfortunately although ridiculous their rates are clear and as such not illegal.
One other thing is the taking of national insurance numbers, who has told you that taking those gives them any ability to take money direct from a persons salary? This is wholly untrue, no lender can make an attachement of earnings - only the courts can do that, if thats being threatened then that most definately IS illegal and should be reported to the financial ombudsman, citizens advice, trading standards and the police!
2006-11-13 00:39:39 · answer #3 · answered by thecoldvoiceofreason 6 · 1⤊ 0⤋
They've been doing this for years and they do charge a fortune for loans you could get much cheaper at a bank. They have ruined many a family BUT there are quite a few people out there who for one reason or another can't get a bank loan or are low income and the bank won't entertain them. I know of a few families who have been glad of the 'provvy' for Christmas, birthdays etc. and although have been charged a ridiculous rate of interest would rather use them than the 'I break your legs if you don't pay' money lenders who also make themselves known on council estates. Perhaps if the government capped the interest they could charge it would help.
2006-11-13 00:35:01 · answer #4 · answered by Anonymous · 0⤊ 0⤋
unfortunately, with so many people unable to get credit they are left with no option.
I have had a provident loan and it was made very clear to me the costs etc involved, Which are yes very high but as nobody else would lend me the money I took it.
As I long as people take out these loans they will still be in business
2006-11-13 00:37:32 · answer #5 · answered by Dark_Mushroom 4 · 0⤊ 0⤋
In the contract between borrower and Provident, does it stipulate that N.I. Number should be provided?????.I would personally think Not. I would take up this with provident head office. If they are not working, how can they take money owing from their salaries??????.
2006-11-14 08:06:36 · answer #6 · answered by Anonymous · 1⤊ 1⤋
provident are regulated.........get your sister to pay off the loan as soon as possible.....is there a cedit union locally take out the loan to pay off provident because provident loans are terrible as you know already whereas credit unions are a lot cheaper....
2006-11-13 06:28:46 · answer #7 · answered by jeff c 3 · 0⤊ 1⤋
yes they are legal
2006-11-13 00:39:19 · answer #8 · answered by dumplingmuffin 7 · 0⤊ 0⤋