A new credit card aimed at the poor, which has a top interest rate of nearly 70 per cent - the highest ever - has been cautiously welcomed by Consumer Credit Counselling Service (CCCS). The Vanquis Visa card attracted criticism when it was launched nationwide this month, following a trial in Scotland. It has a typical APR of 49.9 per cent but a top rate of 69.5 for borrowers it deems the highest risk. But despite an APR of up to 15 times the Bank of England base rate, debt adviser CCCS says the card is the lesser of two evils for those who have trouble obtaining credit elsewhere. 'People should approach this with extreme caution and realise that the interest rates are very high,' says spokesman Frances Walker. 'But I can't see why you shouldn't get a credit card with a very low credit limit. We've always been concerned about the danger of driving people into the hands of loan sharks [if denied credit elsewhere].' Vanquis targets people with limited or impaired credit ratings earning a … [Read more...] about A credit card with APR of 70 per cent. Is this exploitation or the help some people need?
Why credit card are money
A woman has told how a Tinder date bragged about his finances during their expensive dinner - only to have his card declined when paying for the bill. Emma Louise Sanders, 30, of Rainham, Essex, recalled how the man, who was not named, ordered rounds of drinks at an upmarket restaurant at London's Sky Garden - where cocktails start at £13 - despite her insistence that she didn't want any. However when it came time to pay the £100, the flashy man found himself short. His credit card was declined three times and he was ultimately forced to phone his father to ask for a bank transfer to cover the costs. Emma Louise Sanders, of Rainham, Essex, was taken for cocktails and dinner at the upmarket London Sky Garden restaurant by the man, who has not been named. Stock image Emma was on Tinder for two years until meeting 'Mr Right' Danny in 2016. The couple have a son named Callum. Emma wanted to share her dating horror story to give … [Read more...] about Woman’s Tinder date bragged about his finances and £2K credit card limit before having his card declined when paying for the £100 bill – and had to ask his DAD to transfer money to cover the costs
Halifax has joined HSBC in announcing customers can now self-exclude their bank cards from being used to gamble – and if they change their mind they won’t be able to start spending again for another 48 hours. The block is designed to prevent problem gamblers betting money they can’t afford to lose and restrict impulsive behaviour. It lets them prevent their cards being used at bookmakers and gambling websites. Halifax customers who have opted in to the service will not have their cards “unfrozen” for 48 hours, to help “protect those who might otherwise make an impulsive return to gambling”. HSBC, Europe’s largest bank, said earlier this week its 14.5 million UK customers can now self-exclude from all gambling transactions. The restriction can only be reversed after a 24-hour cooling-off period. HSBC says about 500,000 customers placed bets every month in 2018, spending an average of £52.50. It received more than 12,000 calls about … [Read more...] about Halifax joins HSBC in letting customers block cards from gambling
To millions living on Britain's most deprived estates, Provident Financial, the company behind the Vanquis card, is the man - and increasingly the woman - from the Provy. This doorstep army arranges cash loans. The typical borrowing is £100 repaid at £5 a week over 30 weeks. The APR on these loans can range up to 170% but although it's in the documentation, for Provy customers the only paperwork that counts is the cash. For those campaigning for better deals for the poor, the Provy represents exploitation of a vulnerable group with some of the highest interest rates outside loan sharks. And it is not alone - other quoted doorstep loan companies include Cattle's, London Scottish Bank and S & U Stores. But the Provy, with pre-tax profits at £202m in 2003, is the largest. Last year it was in the FTSE100 Index of Britain's largest companies and it's still in the top 110 - so it's a shorthand proxy for the door to door loan sector. Its interests include Yes Car Credit … [Read more...] about Provy – a doorstep army under heavy fire
The government has been called on to grant a “breathing space” of up to a year to people who are struggling under debt, so that they can get back on their feet and manage the money they owe. Debt campaigners want the Treasury to dramatically extend existing proposals for a six-week grace period in which debtors would be protected from enforcement proceedings and mounting interest charges. The Conservative manifesto last year committed to a six-week breathing space but many believe this is insufficient, with charities and commentators saying it can take up to a year for debts to be brought under control. The Treasury is expected to announce proposals on how to roll out the new measure later in the year, after a public consultation ended last month. The existing six-week proposal will fail to cover all but the most simple cases, according to Sara Williams, the author of Debt Camel, a blog advising people on money problems. She says people are increasingly getting into … [Read more...] about Government urged to give those with debt problems a year’s grace