Long-time readers will remember my trials and tribulations with First Direct and some slightly dodgy payments from my bank account to a Vanquis Bank credit card (APR 58%) just before Christmas. Just to update you happy few on what happened, First Direct refunded my account both transactions and gave me a new Switch card, which seemed to solve the problem. Which was nice. They never actually told me what happened as a result of their investigations, but there you go.
Interestingly – and whether it was because of the change of card or some artfulness on the part of these particular dodgers, I don’t know – there was no third transaction that would have triggered a deeper investigation by the First Direct frauds department. That might have yielded more information, so I’m assuming two dodgy transactions wasn’t enough to go on or worth the effort.
Nevertheless, it seems to be the tip of a financial iceberg. I just received this email from another worried First Direct customer (name withheld to protect the innocent, of course):
I have just read your article about being a First Direct customer and Vanquis Bank Chatham taking £250 twice from your bank account. I am very worried now because exactly the same thing has happened to me today. Vanquis Bank has taken £203 from my bank account and like you the First Direct Disputes Department say they will investigate the transaction because I didn’t authorise it.
So that’s two First Direct customers undergoing the same scam c/o Vanquis credit card customers. Tip of the iceberg or coincidence? Enquiring minds want to know.
I have just noticed some random Vanquis Bank Chatham charges on my account and have no idea who they are.
Is 49.9% the highest interest rate in the UK.
I received some unsolicited mail in the post from Vanquis Bank, offering me a credit card, as we both know this is nothing new bank’s send this type of thing out all the time, but what made this so different was that their typical interest rate (in their own words) was 39.9%APR tier (C ) and if that wasn’t bad enough there was another tier (D) at 49.9% APR you can verify the rate of 39.9 APR by visiting there website, http://www.vanquis.co.uk but it doesn’t mention the 49.9% interest rate, I wonder why!! but it is quoted in the letter that they sent me, which I still have! I could forward you a copy of the letter if you required it.
My bank has told me that both these interest rate’s are legal but I think that these rates are immoral and should be made illegal. I know that you and I wouldn’t even dream of being so stupid as to take a card at such rates but the truth is that there are many thousands of desperate people who will, and all it will do is line some banks pockets, defer the inevitable and course even more misery and suffering until the debtor is eventually strangled by the debt, and with credit card debt running at one billion pounds that’s an awful lot of suffering. I couldn’t help but think that there would be a loot of public interest and support for a law which states, for example, (that interest rates could not exceed four or five times the bank of England base rate).
Don’t you think that this is something that you and all political party’s should and could get behind on behalf of the general public and something worth putting into law before Vanquis can help another 100,000 people. If you do contact your local MP and AM
The paragraph below was taken from the Vanquis website on the 17/8/2006,
“Vanquis specializes in understanding individual’s circumstances, which means we might be able to help – in fact we’ve already helped over 100,000 people in similar situations. We’ll also consider you if you have a poor credit history, or have had credit problems or CCJs in the past, so why not”
.
Yours sincerely,
Gary Moore.
Why don’t you go online and apply today and get this unbelievable typical interest rate of 177%APR.
I’M sorry to say that you can find this offer from Provident on the internet . I hope I’m making my point I will carry on until something is done about this and I hope you will too so please get in touch with your MP and help get the law changed to stop this kind of interest rate.
Best wishes,
Gary Moore.
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I completely understand that when you look at an interest rate of nearly 2 to 1 it boggles the mind why anyone would ever dare advertise it. And that it may be perceived as exploitation.
But consider that these loans are weighed by the risk the company takes on to give loans to people who otherwise would not receive them, and that they’re meant for SHORT term, SMALL cash loans.
Im seriously playing devil’s advocate here, and do not advise anyone to get a loan at such a high rate. But I do consider the mother of three who cant afford to feed her children with one two weeks left till she gets paid, and just needs a little help till then…
Used responsibly there is definitely a place for high interest/risk loans.
It’s never made sense to me – borrow money because you’re in debt and can’t pay your bills.. consolidation makes sense, but borrowing at a rate of £2 for every £1 you borrow.. Not sensible in my mind…