Thursday, September 23, 2010
More Self-Certified Loan Lunacy
"A new not-for-profit lending scheme is being unveiled aimed at giving manageable loans to people who cannot obtain conventional loans... However, the interest being charged is higher than the maximum by law that credit unions can charge. It will charge 29.9% APR in the pilot scheme, rising to 49.9% APR in April... The "vast majority" of the set-up costs for the scheme have been met by the Department for Work and Pensions, according to the NHF. There has also been input from local housing associations and the Royal Bank of Scotland." Yup, you read that correctly, various quangoes are going to fire hose taxpayers' money at people who can't possibly afford to repay.