Monday, January 23, 2012

Loan shark to be or not to be, that is the question!

So in the UK there is a radio advert, asking the vulnerable public who are out of a job and going to loan sharks, because they can't feed their family, to call a number any inform on loan sharks as it's illegal!

Now here's the thing that confuses me.
1. Bank rate is 0.5% (banks borrow money from the market or the Bank of England)
2. Banks are lending generally at 14pct
3. Barclaycard is charging 29.9%
4. Other credit cards are charging 16.9 - 19.9 pct some at 35%
5. 'Legal' loan companies are charging 2300 pct like Wonga sponsors to 2 football clubs I know and there is another company lending at 2600 pct
6. I contacted the Football Association asking how they allow this kind of treachery to sponsor football clubs and i was told it's not their business.
7. I wrote to the Treasury to ask how they can justify this kind of business and I wrote to the Bank of England. Needless to say I didn't get a reply.

The question is ' who is the crook' ??
In my simple mid it must be all of the above!!

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