Parents targeted with 200% back to school loans
A LOAN company is targeting hard-up parents struggling to buy new school gear with rates topping 200 per cent.
On average, the cost of sending a child back to school after summer is £186 – with £31 on a uniform, £26 on shoes and £26 on tech, according to research by Nationwide.
But extras like sports kit, bags and stationery add to the bill. Covering it puts low income families under pressure – with three in five parents worried about finding the cash.
The Local Government Association said: “We hear of schools insisting children buy a range of compulsory items. This can push the overall cost of uniform and PE kit into hundreds of pounds.”
Some parents rely on credit cards RESCUERS pull a dog from rubble alive – nine days after the quake that hammered Italy.
The owners of golden retriever Romeo had gone to their wrecked house in Amatrice with fire officers to salvage belongings when they while others turn to online loan firms. And lender Street UK is offering back to school loans of £300, repaid over 20 weeks. Ads say the loans cost £19.60 a week with an annual 201 per cent rate.
Jane Tully of the Money Advice Trust said: “Back to school costs can come as a shock. If parents are struggling and are tempted by ads like these, they’d be better off seeking f ree debt advice.” heard him barking. He appeared to be in good health, despite having had no food or water.
The tremor was the worst to hit Italy in seven years and killed at least 290 people. The search for survivors goes on as aftershocks rattle the region east of Perugia. Birmingham- based Street UK, which describes itself as a not-forprofit personal loan firm, says its charges cover the cost of proving the loans, which are “considerably” cheaper than most online lenders.
A spokesman said: “A £300 loan with a 201 per cent APR may seem excessive if you’re credit-worthy and have savings or can access money from a bank. But if you’re on a low income and turned down for a bank l loan, what alternative do you have? P People need these loans.
“You can either choose to go to a doorstep lender who will charge you upwards of 400 per cent APR or a high-cost lender who can charge you up to 1,500 per cent.”
Kate Hobson of Citizens Advice s said: “Taking a loan you can’t afford c can lead to serious debt. If parents need cash for essentials like school kit, short-term loans are often not the most affordable option.”