This has been here before. A bit of a farce really, because the great majority of the vulnerable people they are trying to prey on will be unlikely to have the sort of car that will qualify as security for one of their "loans."
As I stated in the prvious thread, people with outstanding debts should not be allowed, by law, to add to them. Their imprudence will only get them deeper into trouble as well as causing further problems to those they already owe to. I'm afraid I have little time for loan defaulters anyway.
That's a bit of an inconsiderate statement regarding loan defaulters. There are many reasons as to why people fail to make payments, and the present climate hasn't helped some people. I fully agree with your sentiment if the defaulter is one of those people who have a 'must have' attitude, and consider borrowing as a normal way of achievement. But there are people who had security of job and family, who based borrowing on an average way of perhaps family life, only to find that a sudden blip in their circumstances resulted in perhaps sudden and unavoidable increased debts. ......... perpetual motion-- Those sort of rates are usually well masked and are not taken into equation, because the weekly payments look very appetising when taking out these type of loans. Living on a sink estate with a number of clothes to wash and no credit rating, the wants of a washing machine to replace a previous clapped out model can be an easy answer. Some might look at this as irresponsible borrowing, and in some cases that is correct, hence the increase of Credit Unions in poorer areas, to perhaps combat intimidating loan sharks!.
It's quite scary... we had a caller offering a loan of £150 (vouchers) right there on the door recently. I said "No" as I did not need it and even if I did the repayments where something like £5 per week for a year so that would have put me off.