Credit at interest of 65%
By LYNDSEY WEATHERALL
A DOOR-to-door loan company is offering struggling families a credit card with a whopping APR of 65 PER CENT.
Provident Financial is urging people with a history of debt and poor credit rating to take out its Vanquis card.
Someone with the minimum £100 credit limit would face a 65 per cent interest rate.
If the limit is £1,000 the APR is 31 per cent.
Many mainstream credit cards offer introductory rates on balance transfers of zero per cent followed by APR around 15 per cent.
Bradford-based Provident Financial has 1.5million customers and earns £82million a year.
It has been criticised for its high-interest loans and doorstep collections.
In 2002, boss Robin Ashton was paid £408,000.
Last night MP Norman Lamb, who sits on the Treasury Select Committee, slammed the company for encouraging further debt.
Mr Lamb said the interest was ?outrageous and excessive? and urged the Office for Fair Trading to monitor it. He said: ?The rate is staggeringly high.?
But a company spokesman said: ?We want to bring the benefits of credit cards to people who may have been excluded in the past.?
The firm says the Vanquis card will have strict limits based on a client?s ability.
"doorstep collections" I can't wait to meet that guy
By LYNDSEY WEATHERALL
A DOOR-to-door loan company is offering struggling families a credit card with a whopping APR of 65 PER CENT.
Provident Financial is urging people with a history of debt and poor credit rating to take out its Vanquis card.
Someone with the minimum £100 credit limit would face a 65 per cent interest rate.
If the limit is £1,000 the APR is 31 per cent.
Many mainstream credit cards offer introductory rates on balance transfers of zero per cent followed by APR around 15 per cent.
Bradford-based Provident Financial has 1.5million customers and earns £82million a year.
It has been criticised for its high-interest loans and doorstep collections.
In 2002, boss Robin Ashton was paid £408,000.
Last night MP Norman Lamb, who sits on the Treasury Select Committee, slammed the company for encouraging further debt.
Mr Lamb said the interest was ?outrageous and excessive? and urged the Office for Fair Trading to monitor it. He said: ?The rate is staggeringly high.?
But a company spokesman said: ?We want to bring the benefits of credit cards to people who may have been excluded in the past.?
The firm says the Vanquis card will have strict limits based on a client?s ability.
"doorstep collections" I can't wait to meet that guy
Comment