Provident, Payday or Credit Union Loans

Not having money costs you and it is a vicious circle of debt and high often unfair cost.

Cheap at No Price
118 118 Money are offering loans over 2 years at a representative 99.9% APR. (Annual percentage rate)
Instant Payday UK offer to lend £200 for 30 days: Total amount payable = £240 @ 1223% APR (Variable)
Quick quid 1294.1% APR were a new phenomenon in the personal finance world setting out to challenge Yorkshire based Provident Financial Services, ‘The Provi’.
Yorkshire folk are canny with money and I couldn’t believe we would be sucked in by a new company offering loans that advertise interest rates of 2,689%. One way they explain the annualised interest rates are to show a short loan of 5 days at the rate is 3253% – so that’s OK then. Todays advertised headline rate is APR of 1,261% APR At least when it became known that the Church of England were investing wonga in Wonga the Archbishop created a media storm and the rate started to come down.

Provident on the other hand advertise a rate of 254.5% about 10 times the going rate on an expensive credit card but needs must when the devil drives. Small loans without charges can still cost  APR.  The old proverb ‘neither a borrower or lender be’ had been forgotten. Prior to the latest financial crisis looking at Wonga’s interest rates even I might have been tempted to be a lender ( not really).

Provident History
In 1880 Provident was founded in the West Riding by Joshua Waddilove an insurance agent. The company intended to help some working class families who struggled to pay for essential items such as furniture, clothes and shoes. Repayments were collected in small weekly installments. By the time Joshua died in 1920 Provident Clothing and Supply Co Ltd had grown into a nationwide business with over 5,000 agents operating from a head office in Bradford.
The company also operates Vanquis Bank now based in London. In 1962 the company became a public listed company and the business model is now rolled out internationally through International Personal Finance plc. and Provident Finance plc is still a FTSE 250 listed stock. According to wikipedia the ‘Company’s biggest business is (still) lending to people in their homes via a network of doorstep agents. Out of an estimated 2.5 million people who borrow from Home Collected Credit providers, 1.5 million place their business with Provident Financial…’

Credit Unions

The Association of Credit Unions list 17 Yorkshire based organisations that may have financial products that could suit certain borrowers at far cheaper rates than home or internet collected credit.
If your bank manager isn’t of the listening kind try talking to Citizens Advice Bureau for free advice. There are over 150 recorded under Yorkshire on the CAB web site or your local library would be willing to help find one.


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