Great Champagne 'highest Apr' Credit Card Hunt!

[MSE Martin]

OK not so much a what's best but what's worst hunt. What's the highest APR leaflet trying to flog you a credit card you've found. Vanquis is 49.9% but there are higher.

Champagne rules. To get the champagne you must first post on here the APR for the UK card in question and you must have a leaflet that you can send in (but only if you're the winner, we'll ask you for it). I'll send you the bubbly. If more than one person says the same card, the first to post (who has a leaflet) will win.

What if I don't have a leaflet? Please do still tell us what the highest you've seen is. However for obvious reasons i can't send you the champagne or everyone would just put 1,002,2033% interest

[newfoundglory]

Its not a leaflet... but Provident (owner of Vanquis I beleive), does loans which it gives to its customers on a visa electron card (okay, technically not a credit card... but this is credit on a card!

Loan amount: �290
55 Weekly repayments of: �8.70
Total amount payable: �478.50
Typical APR: 177.0%

Of course, that is a cheap APR apparently :rolleyes:

If you borrowed the same amount over 23 weeks, according to its website:

Loan Amount: �290
23 Weekly Repayments of: �18.56
Total Amount Payable: �426.88
Typical APR: 497.4%

A whopping 497.4% !!

http://www.providentpersonalcredit.c...calculator.php

[Munki]

Provident Finance do a 69.9% card I believe.....

[Munki]

oops... that is the Vanquis I think... or the same company... hmm...

[sedso]

Hi

I got a leaflet from Vanquis the other day offering me a typical APR of 59% and an annual fee of �19, shocking.

Cheers
Simon

[Munki]

They also had an advert in Januarys Soldier magazine aimed at older people at 110%...

[Munki]

... trouble is, I had the magazine through the post from the British Legion and have probably chucked it. So nows someones chance to dig out that magazine and grab themselves a bottle of champers... (unless I can get to the legion and dig out an old copy before you lot! hehe)

Munki.

[Jabes]

It's on their web site: http://www.natwestblack.com/natwestb...summarybox.asp

50.7% APR.

However, this is a bit of an unfair reflection on their interest charges - see their statement.

[Jabes]

53.9% APR

http://www.couttsworld.co.uk/fees.asp

Same as the NatWest black card, it's the charge which makes it look so bad.

[Balestra]

I can't beat 497.4% but I do have the leaflet (had to go and dig it out the bin) and it is a credit card. Oh! and yes it's from Vanquis again!

32.9% to 59.9% variable on purchases

Credit limit up to �2000 - typical credit limit of �250!

All this for an annual fee of �19!

The leaflet also says they are regulated by the Financial Services Authority.

Can anyone tell me what is the point of the Financial Services Authority when they let banks offer deals like this?

[grumbler]

Originally Posted by Balestra

Can anyone tell me what is the point of the Financial Services Authority when they let banks offer deals like this?

This is general law of finance: the higher the risk, the higher the interest. Do you think that the Financial Services Authority or somebody else can change a law of nature? All they can do is to set up some limit on interests. The only result will be that high-risk borrowers cannot get any credit.
I do not justify high interest rates, but I think the only problem here is that borrower must have clear understanding of the deal from the very beginning. Then it is up to the borrower to decide whether to take the deal or to leave it.

[MSE Martin]

It's interesting about the FSA. There has been much debate on a 'rate cap' so you can't charge above a certain amount.

There are two problems with this

1. Short term lending which provides crucial cash-flow (if done right) would be hit

E.g. Borrow �200 for 2 weeks at the cost of �10. Sounds reasonable -but is actually substantially more than 100% APR

2. Rebuild credit score

Sometimes these cards can be useful for those rebuilding their credit scores. Get one of these hideous beasts (possibly the only card available to you), use it, but pay it off in full each month, and it will help your score.

[colin_tomlinson]

Originally Posted by grumbler

the only problem here is that borrower must have clear understanding of the deal from the very beginning.

I'm not sure how to respond to this comment without offending some people, but I'll do my best!

I recently spent several years living in an area of limited intelligence: a typical attitude was "What would I want to get a job for? Then I'll have to pay full rent."

Provident were rife in this area. It's very common for them to lend money (at typically 70%), where a �100 cash loan will cost �3/week for 54 weeks. Moreover, the customer can have several "clubs" running at the same time, but at some stage, the collector will insist on putting all outstanding debt (being the balance of payments remaining) onto a new club attracting a new lot of credit charges. (eg �100, paid 27 weeks �81. �81 outstanding (remember, only �100 borrowed and payments made for over six months) put on new club so �81 means total repayments of �131.22 - FOR THAT CLUB, together with all the other mid-term arrangements.) These customers often only see the weekly amount to judge if they can afford to borrow.


Another company is Family Finance and a subsidary/sister company Family Television. Family Television are the old slot TVs where the monthly loan repayment is collected in a slot on the side of the box and the collector empties the box once a month and refunds anything over the repayment: many families see this as a gift! Naturally, if viewing has been low (unlikely), the customer has to make up the difference.

A typical APR is 45%. I asked some people what this meant and was told "I've no idea: I just know I get xx hours for a quid and I usually get some of it back."

Once the loan is coming to the end of its term, the collectors start the tactics: "You've got used to this money going out now, is there anything else you need -a fridge or cooker perhaps? We can just put in on your TV slot for you." Many saw this as a free gift!

I know the onus is on the customer to be careful of what they're getting into, but if maths isn't their fort! ...

[grumbler]

Originally Posted by colin_tomlinson

...if maths isn't their fort! ...

You do not need to be a great mathematician to multiply �3x54. Everybody can do this simple arithmetic if he/she wants to do this. If he/she does not want, it is his/her problem, but not the Financial Services Authority�s. I think that the terms given above as an example are quite fair. It is expensive and risky way of lending that involvs collectors.

And no, I have nothing to do with Provident or some other financial company
I am sorry that I led this thread away...

[amateur_saver]

Credit card with 70% interest rate


A HIGH interest credit card aimed at low-income families has come under fire from politicians and debt campaigners.

The Vanquis card, which can charge up to 70 per cent interest and was piloted in Scotland two years ago, was rolled out across the UK yesterday.

The card targets individuals rejected by other lenders because of previous debt problems and trawls through the files of private credit rating agency Experian to identify prime customers. The card, run by a subsidiary of top doorstep lender Provident Financial, will charge a normal rate of 49.9 per cent, but for customers in the high-risk category, interest could shoot up to 69.9 per cent - the highest ever charged by a credit card company and 15 times the Bank of England base rate.

Haven't been 'lucky' enough to get a leaflet tho'...


i can direct you to the website for the champers.... I'm beginning to think Martin has a share in the stuff....he he he

[lswwong]

Damn! About 2 months ago one of these Vanquis leaflets was dropped through my letter box, though it was not addressed to me personally: just said "The Occupier". I thought of sending it to Martin for his comments but have since binned it.

[Enrico_VII]

I'm hoping to win a prize for the best misplaced post....

DVLA do a nice 49.3% APR - this is what you pay if you opt for getting 6 months Vehicle Excise Duty instead of the 12 months flavour. Unless you are borrowing on one of the cards in this thread then it's hard to see how you can sensibly go for the 6 month option.

Lovingly yours
Enrico

[Clariman]

Originally Posted by grumbler

You do not need to be a great mathematician to multiply �3x54. Everybody can do this simple arithmetic if he/she wants to do this. If he/she does not want, it is his/her problem, but not the Financial Services Authority?s.

You don't need to be a great mathematician, but you certainly need a basic understanding of arithmetic, a large dose of common sense, and the ability to look beyond this week's household needs, in order to see what you are paying on a loan at 49%. It may surprise you, but there are plenty of people out there - people who don't inhabit financial discussion boards - who don't have these skills. There are people who genuinely struggle from week to week and rely on doorstep lenders. This makes them easy prey to unscrupulous lenders.

I fully accept that there are business economics which means that higher rates are a way of managing risk, but there are people out there who really do need the protection of the FSA and i think the FSA should be doing a better job of that.

Clariman

[Galstonian]

I'm not certain that regulation on maximum APRs by itself would help. I don't want to try and defend the interest rates but they are designed to cover risk and still deliver profit. If the FSA set an arbitrary limit on APRs we could easily find that it would allow pricing for risk but reduce potential profit to the point. If this were the case I think you'd find that less reputable (yes, there are less reputable lenders than Vanquis etc.) getting into the market and some customers being pushed into unregulated lending. This is not what anyone wants to see.

If the FSA do anything to protect consumers it should include raising awareness amongst people who take out these kind of cards and loans rather than simply outlawing a product which they believe they need and will search for elsewhere.
Its not as easy as simply saying "it shouldn't be allowed".

Anyway, I have just allowed myself to be diverted on a tangent to the main thread and am now going to ask if anyone else wants to do the same that they please take it to the "Discussion Time" board. Obviously the power of being a board guide has gone to mey head, its one rule for me and another for everyone else...

[mandi]

Er Hello Posted this WARNING three weeks ago!! funny thing is ,,becuse i didnt reply... Vanquis have just today sent me a second application form!! oh yes.. they dont give in easily. In the meantime ive spoken to the FSA and apparently they dont regulate ... so they put me onto the OFT who sent me a LOAD OF BOLLOKs!! by e-mail

Still Got the Letter as proof though!!!!


DO I WIN??