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Written by Amelia Watts
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Monday, 22 October 2007 |
Money Lenders have been operating since the Middle Ages, so it should come as no surprise that there are a growing number who charge extortionate rates of interest and who are targeting the most vulnerable of society. These are nothing more than legal Loan Sharks and a few have even been floated on the stock market!
Yes, they will have a Consumer Credit Agreement Licence and must be a registered company, their websites clearly state the APR so why do people still use them?
A quick Google search pulled up interest rates in excess of 578%! No, we haven’t left out a decimal point, that really is five hundred and seventy eight percent. Surely no one would pay that? Sadly people do, as these companies aggressively target people in receipt of benefits or who are on low income, people who are struggling to make ends meet. Once they have them hooked the rest becomes irrelevant.
Here are a few examples of the actual quoted costs
£200.00 with 6 monthly payments of £46.67 pm = £280.02 total repaid which is a whopping 233.4%
£150.00 with 6 monthly payments of £36.25 pm = £217.50 total repaid which has an APR of 280.4%.
Another service readily available is cheque cashing or pay day loans these are on offer with rates of *APR 1284%. How they work is simple; you write 5 cheques for £100.00 and they will pay £425.00 in to your bank account the next day. The cheques will be cashed on your payday next five pay days.
Roll over the payment option
£100.00 £20.00
£200.00 £40.00
£300.00 £60.00
£400.00 £80.00
APR 1284%
Based on Cheques Held For 31 Days
example:
- Send in 5 cheque's each of £100.
- Receive £425 paid directly into account day 1
All Cheques cashed on your next payday as follows:
- Month 1: 1st Cheque Cashed £400 Rolled-Over
- Month 2: 2nd Cheque Cashed £300 Rolled-Over
- Month 3: 3rd Cheque Cashed £200 Rolled-Over
- Month 4: 4th Cheque Cashed £100 Rolled-Over
- Month 5: 5th Cheque Cashed, Loan Closed.
Also available are Log Book loans where you can secure funds on your car (as long as there is no existing credit on the car) with rates of 366% APR!
*Note Annual Percentage Rates (abbreviated to APR) are worked out as a % of £1000.00 over one year as the loan is being repaid through out its term the APR will be higher.
- £1000 at 20% paid off in full at the end of the year = £1200.00
- £1000.00 paid back at £100.00 per month equates to approx 40% although £1200.00 is repaid
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Last Updated ( Monday, 22 October 2007 )
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Written by Amelia Watts
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Sunday, 12 August 2007 |
As most people will now be aware, in July 2007 the Office of Fair Trading agreed with seven major high street banks to a test case to determine the legality of Bank Charges. This effectively has put all claims on hold until the case is decided. However, there is an Act of Parliament which over-rides this if you are in receipt of any of the following benefits.
- Income Support
- Tax Credits
- Child Benefit
- Job seekers allowance
- Incapacity benefit
- Disability living allowance
- Attendance Allowance
- CSA payments
- Other DWP payments.
These benefits are granted to stop hardship and are designed to meet basic day to day needs, and are protected under the Social Security Administration Act 1992 sub section 187. This stipulates that the bank can not apply any charges to money received as benefit, and any such charges are unlawful and therefore disallowed.
If you live north of the border you also have the weight of a successful test case won against a bank (Woods v Royal Bank of Scotland).
So if you have been charged by your bank now is the time to fight back!
The banks will have to action your claim as it is by order of a higher authority, namely an Act of Parliament and not by the Statute of Limitations Act which is being cited in the current bank charges debate and test case. You will need to prove that the funds received in to your account are benefit payments, but your bank statement will be proof enough as the payments will be listed as such. Use the online letter generator below or download (Letter for Scotland or
Letter for Rest of UK) in RTF format to start your claim. Good Luck!
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Last Updated ( Saturday, 08 September 2007 )
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Read more...
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Written by Amelia Watts
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Monday, 20 August 2007 |
In today’s unsure market it is worth trying to save a little for a raining day, so with this in mind Debt Help Expert have scoured the market place to find you the best deals.
Savings Accounts with £1.00 opening balance and no notice period
- Anglo Irish Bank Easy access account paying 6.10 % AER
- CITI Bank Flexible Saver Issue 3 account paying 6.10 % AER
- BMW Savings E saver account paying 6.01 % AER
Internet Savings Accounts with £1.00 opening balance with no notice period
- Birmingham & Midshires Online Saver Account paying 6.30 % AER
- ICICI High Saver Account paying 6.30 % AER
- Sainsbury’s Bank Internet Saver paying 6.25 % AER
- HSBC Online Saver Account paying 6.25 % AER
- Abbey e Saver Account paying 5.90 % AER
- Nationwide E Savings Account paying 5.80 % AER
Regular Savings Accounts save from £10.00 to £250.00 per month
- *Alliance & Leicester Regular Savings Account 12.00 % AER
- *Abbey Regular Savings Account paying 10.00 % AER
- *HSBC Regular Saver Account paying 8.00 % AER
- *Halifax Regular Saver Account paying 7.00 % AER
Mini Cash ISA Instant Access with £1.00 opening balance
- Alliance & Leicester Direct ISA Issue 3 paying 5.90 % AER
- Halifax ISA Saver Direct paying 5.75 % AER
- *Smile Cash Mini ISA paying 5.50 % AER
Note: * For all of these accounts you will need to have a bank account with the relevant bank and the % rates are for the term of one year no withdrawals allowed.
AER (Annual Equivalent Rate) is the notional rate which illustrates the contractual interest rate as if paid and compounded on an annual basis.
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Last Updated ( Friday, 24 August 2007 )
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