http://www.thriftyscot.co.uk/122008/high-interest-lenders-target-bad-credit-customers.html Welcome to The Thrifty Scot financial help site. Look through our credit cards, loans, mortgages, savings and insurance sections Mon, 12 Sep 2011 23:59:44 +0000 http://wordpress.org/?v=abc hourly 1 http://www.thriftyscot.co.uk/122008/high-interest-lenders-target-bad-credit-customers.html/comment-page-1/#comment-3722 Matt Smith Tue, 30 Dec 2008 11:51:58 +0000 http://www.thriftyscot.co.uk/?p=3674#comment-3722 In what way are these companies who charge a higher rate of interest less responsible? Surely they charge a higher rate of interest to reflect their level or risks and costs associated with writing such business? They are quite clearly lending to consumers that mainstream lenders refuse to lend to becuase of their credit profile. So for someone to bear that risk, they clearly need to charge interest which is relevant to their exposure. These sub prime companies you refer to will undoubtedly have incredibly high default rates and write offs each month. If these companies weren't around then were else would consumers go? To unlicenced and unregulated loan sharks? In what way are these companies who charge a higher rate of interest less responsible? Surely they charge a higher rate of interest to reflect their level or risks and costs associated with writing such business? They are quite clearly lending to consumers that mainstream lenders refuse to lend to becuase of their credit profile. So for someone to bear that risk, they clearly need to charge interest which is relevant to their exposure. These sub prime companies you refer to will undoubtedly have incredibly high default rates and write offs each month. If these companies weren’t around then were else would consumers go? To unlicenced and unregulated loan sharks?

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