TV advertised mega interest loans, can this be true?

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Sherlock

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An associate of mine arranges loans through "reputable" Finance houses, Banks etc, and he had a potential customer refused credit by a Finance house because he had used a mega interest loan company in the past, without any late payments or debt. The reason given by the finance house was purely his use of of a loan "shark".

Is this just the Banks and Finance houses trying to squeeze out these firms, because they supply loans in minutes when Banks take months, or they can;t get away with charging 4300% APR (yet)?
 
The area of credit checking requires regulation, it can also be used to try and enforce payments that are not legally owed. Many credit agreements that get handed out are actually legally defective, but if you refused to pay you'd go on the old blacklist.
 
The thinking behind it is that you wouldn't use one of these shark companies in the first place if you were able to gain access to mainstream sources of credit, therefore it's an indicator of a poor credit history even if nothing else is amiss.

Even without going to a broker, I know I can get a 4 or 5 figure loan from my bank in seconds online, at a rate of about 9% APR. Most people with good financial histories are in the same position. Why would I use "spondooliks dot com" at a ridiculous rate of APR?

I think these high APR companies should be outlawed, to be honest. They are preying on people in bad financial circumstances. If people have to take out high APR loans just to pay for basic essentials, then that's wrong. We as taxpayers should be helping them (f*** what the Daily Mail thinks).

Alternatively if people are taking out these loans to pay for luxuries then that's their own stupid fault. If you have to use a shark loan to pay for a luxury then you can't really afford it. Save up for it, like people had to do in the days before cheap and easy credit.
 
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