Toothfairy Finance

Toothfairy Finance. What a name.

They don’t have a very good Google results page.
They don’t have a very good website.

Unsurprisingly they don’t offer very good rates of interest on their “microcredit” loans either. Effectively they are a payday loans provider that charges interest at 2689% APR (according to their own website). This breaks down at £9 per week for every £100 borrowed. You can borrow £100, £200, £300 or £400 which must be repayed in full (plus interest) after either 14 or 28 days.  Borrow £400 for 28 days and you will have to pay back £544.

A very quick look online reveals numerous forum postings where people have decided that their only option is to borrow from Toothfairy Finance or some other similar company at these (in my opinion) extortionate interest rates only, surprise, surprise not to be able to pay off the loan when it is due for repayment. Many people seem to compound their problems by then taking further expensive payday loans from other providers to pay off the first. Obviously this just exasperates the situation.

No doubt there are some which say this kind of firm targets those in socieity who can least afford to pay, but they also provide a service that few others are willing to provide due to the high risks. Poor credit ratings obviously result in higher rates of interest and traditional loans may not be available to people who feel they need to use these sites.  People may feel that payday loans are their only option but no one forces them to take them out – what did people do before these companies existed?

Toothfairy have been in trouble with the OFT for the large fees they impose and demands they make of those who are unable to pay.

The loans section of Money Saving Expert is awash with people who have fallen into the payday loans trap.  Do I feel sorry for these people? In most cases no I think that you must be naive, stupid, incredibly unlucky or a combination of all three to find yourself in a situation whereby you have multiple loans with multiple providers and can never pay them off.

Interesting, vets bills seem to make a re-appearance in many of these cases! [1] [2] [3]. Why do people try to look after animals if they can’t afford to look after themselves and make a few savings?  Cable TV even appears as a costing on one of these.

Back to that advert then, I can’t decide what I like least:  The fact that they say that they say all students are “entitled” to a loan from them without them knowing anything about my status –  I don’t remember there being a Facebook field titled “income” or “credit rating”!  Or, the fact that they are encouraging students to get into debt when we are already entitled to a much cheaper loan from the Government.  The ad certainly doesn’t state that this is a payday loan or its APR either.

Also “five miuntes”!?

</moan>

Comments closed and removed due to their nature.

On the mess in London

These clueless rioters bore me now.

“Student protests” pretty much summed up by the question of a BBC reporter to a ‘protester’ earlier today: “Can you tell us why you’re here” Response:  “Umm…   No”

Mildly amusing comment earlier by a BBC guest opposed to fees/cuts who clearly thinks that we should continue to spend more than we can ever pay back:  “Concrete breeze blocks aren’t particularly constructive”.  Tell that to someone in the building trade.

Yes the maximum amount Universities will be able to charge is much higher but to be honest I don’t really see why there has been so much fuss.  Not all Universities will charge the top fees.  Students already pay fees.  The new system means that you don’t have to start paying them until you are earning £6,000 more than currently.  If you don’t pay them off in full they get written off after 30 years.   Pretty good deal if you don’t actually make good use of your time at University and if you do well it shouldn’t be a problem.

Grey future for students of today

The papers are constantly telling us that the economy is all messed up.  That students cannot get jobs when they leave University with debts and ridiculously high applications-to-graduate-jobs figures are being quoted almost every week.

Today joy of joys the BBC is headlining with “Students to face higher costs as graduate tax proposed” whilst a quote from today’s Guardian Online reads “It makes gloomy reading for those studying computer science and IT – they have the lowest employment rate for any area of study”.  Lucky us.

Natwest also sent me a nice letter saying they are going to stop paying me interest on my student account. I don’t know what the rate of interest I had been receiving from them was but it is the principle of the matter! The savings I have elsewhere are earning me something like a pathetic 2% a year thanks to low interest rates caused by all those people buying houses they couldn’t afford and inflating the prices so I will have no chance of owning one for the next 20 years or so.

So the parents of my generation not only got paid to go to University and benefited from vastly increasing house prices once they were on the property ladder they also get to retire at an age which is totally unaffordable leaving us to work longer and pick up the bill!

Grrr. I bet that if I do manage to save up to buy a house interest rates will magically be much higher then.  </rant>