Freethinkeruk’s Weblog

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HM Department of Loan Sharks

The Dept of Work & Pensions under Iain Duncan Smith (IDS) is today announcing a loan ‘service’ for the poor and vulnerable in our society. (Let’s ignore for a moment whether in the 21st Century there should still ‘poor & vulnerable and that an earlier Tory had said ‘there is no such thing as Society’)

This scheme called My Home Finance is supposed to protect people who are in dire straits from the clutches of loan sharks who charge exorbitant rates of interest often backed up with threats of violence.  From this perspective it’s a good idea. The scheme though, when rolled out nationwide, will be charging 49.9% interest! At a time when the Bank of England Rate is 0.5% and credit card companies are offering around 12% and Credit Unions are prohibited by law from charging more than 26.8% but usually charge less, I would call this Government scheme Loan Sharking.

If further proof were needed that this Con/Dem coalition is intent on fleecing the poor to pay for the capitalist excesses you must be very difficult to convince.

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2 thoughts on “HM Department of Loan Sharks

  1. Well the government quotes an APR of 29.9%. So if you borrow £1000 you repay £1169.28. Giving a true interest of 16.9%….assuming there is no arrangement fee!

    Not as high as Dick said, but bloody criminal seeing that The Bank of England’s MLR is 0.5%!!!!

    Cost to “government” £5. Cost to punter £169.42 = Profit to The Chuckle Bros of £164.28.

    A massive return on their £5 investment of 3200%!!!

    I’d like some of that action. Robbing bastards!

  2. The APR that you mention of 29.9% is for the pilot scheme only. When the scheme is rolled out nationwide it will be at 49.9%!

    See also on the BBC site

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