I have had this rant in my head for months but this week I went over the edge with rage.
I have a real problem with these sorts of loans and not only how they operate but how they advertise. They may it look easy, they make it look like the solution to a problem. It is not.
And now we have a lender using Kerry Katona to front their advertising campaign “because she has a well publicised poor financial history”. She is an ex bankrupt so Cash Lady thought that Kerry would be perfect for their adverts.
What? On who’s planet? Kerry didn’t get herself out of financial ruin by using Payday loans, in fact I can’t imagine she has ever used them.
These loans are aimed at members of society who can’t get a loan any other way. Normal banks and lenders won’t lend to them. And I feel for them. Needing money and not being able to get it is terrible. It is desperate. And these loan companies know that. Hence their extortionate interest rates.
The company that Kerry is advertising has an APR of 2,670%. How in God’s name is that even legal?
By their own calculations if you borrow their top amount of £300 for thirty days you have to pay back interest of £52.20.
So if you were so desperate for the £300 you had to resort to this type of company where are you going to find £352.20 from at then end of the month? And if you are then eating into the next month’s salary or benefit money and so the cycle continues.
If Kerry really wanted to put her financial history to good use why didn’s she become the face of the Money Advice Service? A free organisation that can help with money worries or the Debt Advisory Service who do something similar.
This kind of lending is morally wrong. Yes, there are people in dire financial need but surely this is not the answer?
Please check out other blogs linking up to Ranty Friday this week: