Yes,there are private businesses that offer loans. For example we have a firm called "Firm Provident" and she lends 800$, but the APR (annual percentage rate) is 227%, so that's more than double right. After some reckoning, the borrower gets to pay back 1380$ that's 580$ more.
The upside is that you can easily obtain loans and this is what their business is based on, just your id or driving license and their contract. The downside is that interest is huge, obsessive telephone calls, tickets at the door and doorstep visits. Firms like "Firm Provident" entered in every country on earth in which the laws permit it promising two things as clear as they are attractive: the loan within 24 hours and you get your money directly at home, without leaving.
A growing number have resorted to "Firm Provident" without knowing too many details about the interest and repayment conditions. Behind these easy to obtain loans there is a huge mental pressure and a permanent staff member at your door knocking every week to ask you for money.
So, at 800$ loaned, you would pay 106$ per month and a similar bank institution would ask 74$ per month. The thing here is that the APR at "Firm Provident" is calculated for the whole year, even if the rates are weekly and they cover 3 to 6 months.
The people that "forget" to pay in a week are looking at serious phone calls and house call visits. To obtain the loan, just make a call, and then the credit is almost solved. On the phone, the operator tells you that you must have permanent residence, you are asked what salary you have or other incomes, about how much money you want, and "within 24 hours", as the commercial specifies, and then an agent in your area will be at your door with his finger on the door bell. Once the agent entered the house, the relationship is becoming increasingly close, between the borrower and the new "friend".
"I called, he came home to me, I gave the certificate to the agent, looked at the ID card and completed a questionnaire," Martin tells of his first meeting, a customer.
The questionnaire is intended to gather personal information on other expenditure or other loans from banks."Honestly, I do not think my answers have mattered much, because I still had two very large loans to two banks," says the client. Meanwhile, the agent becomes more "intimate", he has a chance to draw an eye in the house and to make a personal opinion about the financial situation and the client.
After you complete the first meeting and all the information is verified at the firm's headquarters,the loan is brought home by the agent within 24 hours. He first notifies you by phone and comes back to your home.
In one week the phone starts ringing, the agent wants money, the first installment.
Visits are weekly, and the agent phones are constantly - you have to pay rates. "I got some money from them, the first installment to be paid in seven days and they came to the door after just three days to demand money. There was no problem, I had a bigger sum of money, so the agent told me that he will keep all the money and deduct from the next payment. That got me thinking, so I asked my money back, and they didn't give anything back. For several weeks, their representative insisted with phone calls and tickets in my door. And the agent came a couple of times at my work place and threatened me." says Andrew, one of the clients interviewed.
So, the conclusion is that they promise you easy loans, trust and understanding, like in their TV/magazine commercials, but they actually do you more harm with huge interest, weekly rates, and putting big pressure on you all the time. So don't be fooled people, firms like this should not exist and they should be avoided at all time. It is like borrowing money from the mob, and this is not the kind of problems you need in your life.
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