provident loans?

[R18 DVD Shop]

Im probably gonna be the lone dissenting voice here BUT these companies lend to high risk clients who other finance companies wont touch as they are typically bad payers or have a poor cedit history. The only other option open to people in this situation is the illegal loan sharks who charge much higher interest rates AND make sure they get repaid no matter what it means to the health of the customer.

As such the loan company can reasonably expect that for every ?100 they loan out quite a sizeable % will not be repaid due to the very nature of their customers therefore they have to charge x% more interest to cover their costs. Put quite simply if they were to offer the same interest rates as the hugh street banks then they wouldnt make a profit and thats what its all abut.

Also, like them or loath them, they do provide a valuable service to many low income families and allow kids to have presents on Xmas morning that they wouldnt otherwise be able to have for example - Im only in my late 20's but I know what it was like growing up as a kid and every xmas morning seeing all the other kids with new bikes and all the new latest toys while we had a second hand bike to share between the four of us. The pressure on parents and families from society is HUGE and, while these companies are taking advantage of that pressure, they are doing what any good business does - find an opportunity and make the most of it.

The other thing to bear in mind is that these are completely legal companies who are working within regulations laid down by law (consumer credit and fsa regs for example). Ultimately, the client always has the option to say no - if they choose not to (knowing that already cannot afford other commitments and that they probably willl never be able to pay it back)then, as mature and responsible adults, then they have to accept as much, if not more, of the blame as the loan companies themselves.

Jay