Fighting Finance for the Poor

Have you ever applied for a loan and credit card and been told that you are told that you have failed with your application, meaning really that you are to much of a risk to the company or bank that you applied to. The situation will probably feel hopeless, but a new business that will herald from East London, will hopefully mean that the only means possible to you to get the cash that you need via a doorstep lender, who can charge anywhere up to 900% in interest or your friendly neighbourhood (no not Spiderman) loan shark will not be an option for you.

The new firm is called Fair Finance, which has been put together by the community, housing and banking organisations, to help the poor who have little or no credit history. They can offer loans up to the value of £2000 with an interest rate that is fixed of 21% it may seem a little high considering the great deals that credit cards are offering right now, but it’s a fantastic deal compared to what you would be looking at if you turned to a doorstep lender or god forbid a loan shark.

People who have maybe had to turn to these parasites in the past, will have paid back at best 150% in interest, at worse 1000% in the case of CLC, which to them was a typical rate of interest, I wonder if they could sleep at night. All this has lead to poorer lender paying £500 million back to these licensed crooks, in interest charges.

Like any other credit facility Fair Finance will still need to be satisfied that you have the ability to pay back your loan, but this will be done on your current circumstances to repay, not by past credit history which is used by credit card issuers and banks. As well as having the current ability to pay, two referees will also have to be accredited to you.

With Fair Finance being a new company the need to deal with local issues first will be the order of the day and to help the people of their East London base, will be first and foremost. The districts of Tower Hamlets, Hackney and Newham will be seen as a priority to them due to the fact that 25% of the people here have no basic banking services at their disposal, which in this day and age is a disgrace.

The good news is that three of the country’s biggest banks have been forthcoming in they’re support for the project, with financial assistance, which will offer the Fair Finance the chance to forge ahead with the other part of it’s business, which will be to offer up business loans, to people who want to start up or even if you already have a small business, this will mean that you can receive a loan from £6000- £10,000 with an interest rate that is lower tan that of a personal loan, the figure being 19%.

Fair Finance has come as a shining light to the people who are at the lower end of the credit ladder and will hopefully be used to it’s full advantage and keeping them out of the clutches of the loan sharks.

30/4/05