Credit Score Calculator ?
I got a call the other day, a cold call wondering if I was interested in
finance.
I could do with borrowing but explained that my credit score is a dog and
nobody would lend to me.
After asking me a few questions I was told that they worked with companies
who they were sure would be able to help, so I agreed to let them pass my
details on.
I get a call from a loan co who can help, they ask how much I want and fax
me a offer in principle. I was told the interest was 14%, a bit steep I
thought.
Trying not to get too chuffed I note that there is an up front £425 charge
for legal costs and the monthly repayments look a little steep. Also I
apparently have to have the papers looked at and signed by a solicitor of my
choosing.
I phoned the co as I was concerned about paying the £425 then being refused
the loan, the assured me that once the loan had been offered they wouldn't
withdraw, and they wouldn't charge the £425 before agreeing the loan.
So I put the numbers into a payment calculator and it turns out that the APR
is 23% so I gave them a ring, apparently they quote the flat rate. Also as
the loan is to buy a machine it is a purchase lease and at the end of the
term I would have to pay up to a further 10% as a final payment to make the
machine mine. Oh and the loan is secured!
Is this some sort of scam or are there people out there who would be happy
with this?
Im guessing they make a load of money from people who are offered a loan,
they agree to take it, papers are drawn, the £425 is paid then they are
talked out of it by their solicitors only to lose their money.
What do you folks think?
A total rip-off! Avoid it like the plague
I thought that they are required to quote the APR, or is that only for
consumer loans?
I think there are people out there who will sign anything at all I order
to get a loan and plenty of lenders who will let them. I've seen secured
loans at far higher interest rates than this one but most people
desperate for a loan with bad credit are perfectly happy just to look at
whether they can afford the monthly repayments and never look at such
things as interested rates.