Targeting People Who Cannot Afford It
Posted on | July 17, 2006 | Comments Off
From time to time, I receive emails like this one I received today (below).
What they are trying to get from me are the names and proposal details of customers who have been declined for contract hire. To pass finance checks and get one of my cars you have got to be a reasonably good credit risk. And with good reason; in 2 year’s time, the finance company do not want to go to collect the car and find it no longer exists, nor do they want defaulting customers.
Like shoplifters, defaulting customers just put up the prices for everyone else. Apart from anything else, there are usually really good reasons why people get declined. These reasons should be tackled and dealt with, by the people.
So I am really not impressed that a kind of sub-culture has built up in this industry, aimed at targeting the people who cannot pass finance. Like the advert (above), these companies are simply in it for the money. No doubt the rates will be sky-high, deposits large and perhaps even people’s houses will be put at risk.
If people are declined there is usually a good reason. Rather than just offering them VERY EXPENSIVE sub-prime finance, I would encourage people to visit experian.co.uk and moneysavingexpert.co.uk. Credit checks and useful suggestions to improve credit ratings can be found at Experian (you can get a free report), and Martin Lewis of Money Saving Expert always has good advice to avoid traps like this, and improve credit ratings.
But just to stick (desperate?) people into high-cost sub-prime contract-hire “WE WILL ACCEPT CCJS DEFAULTS, ARREARS, NEW START BUSINESS ,VOLOUNTRY ARRANGEMENTS AND DISCHARGED BANKRUPTS.“ – and offer “CARS UP TO 5-YEARS OLD“, is not my cup of tea at all. Sorry, go foist your money-lending-to-people-who-shouldn’t-borrow-it on someone else, not me or my customers.
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