I'm shocked this is allowed to be aired.

CarlyD7
That's a bit mixed up.
Anyone on benefits is likely to have their council tax paid and if their benefit covers housing costs, the limit is whatever the LHA deem a fair rent whuch us in each council's website. Anything more, then the difference would have to be met by the benefit recipient.

* which is.

PayPal lets you buy items over £150, 4 months later, without paying interest. Then you pay £5pm or settle the amount outright. Their APR is very low.

On the topic of prepayment meters, when we moved to our present home it had a prepayment meter. I asked the energy supplier (Eon) to change it. Initially they agreed - until I mentioned that we were retired. They said we were categorised as low income and therefore a financial liability (his words, not mine) and we would have to stay on a prepayment meter. I complained and he began to ask intrusive questions about our finances. I, of course, told him to mind his own business and said I would be changing suppliers. He immediately said we couldn't change because we owed them money, we'd only been there 2 weeks! After a strongly worded letter from our solicitor (which she did for free) Eon 'allowed' us as a gesture of goodwill to change to another supplier. No apology was given. I complained again in writing but received no reply. What a way to treat a new customer!

gillybob
That's the most ridiculous suggestion I've heard in a long time. How about banks lending money for a new car but only being allowed to charge you for the basic cost? How do you think they or any other company, make their money? They're businesses fgs.
It's really finance companies who set the rate according to risk, not banks or so called lenders.

An interesting discussion. But things were different back in the day! If you could not afford something then you went without, this was my parents view and one I lived by. I did go without as a child but still enjoyed my childhood. It is a fact that living on credit has become the norm for many. This is also true of relatively wealthy people not just those who are on low incomes.
To quote Charles Dickens, “Annual income twenty pounds, annual expenditure nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.”

Another reason why I'm against the millions in foreign aid that this country sends to others------Why ?? Billions !
Our own are starving and many are destitute. On the news earlier it was announced that over 200 youngsters will be on the streets of Liverpool over the festive season. Does anyone listen ? This is just one city out of many. Back to Victorian times where greedy landlords just looked on ! This country is a disgrace.

I've been with BG, nPower and now Brilliant Energy in the past 11 years, none of which have ever mentioned changing my meter to a prepayment meter although I live on my own and have been retired for 14 years which begs the question, 'Why do Eon refuse standard meters to retirees?'

Notanan2. I wasn't having a go at people with low incomes buying high end goods. Its the sales people pressure selling things to people who clearly can't afford them that i think should be regulated. Sorry, didnt make myself clear.

British heart, hospice charity shops sell brilliant furniture and electrical goods at a reasonable prices. Accommodation can be furnished very cheaply from charity shops. However some people have to have the latest models of electrical goods and gadgets. It is a choice to go to Brighthouse.

I agree BB

GG if you do not already have a prepayment meter then an energy company can only in general that you change to one if you’re in debt to them. The rules are clearly laid down by Ofgem and pensioners/people with disabilities are excerpt from being forced to change. The PP moved into a house that had a prepayment meter and I guess EON didn’t want to have to pay to u install it and/or wanted to continue make an extra profit out of them.

The PayPal option is not automatic and people with debt problems already would almost certainly be refused

Re council tax - the system was changed in 2013 when this government passed the national scheme over to LAs to decide on some of the rules with the deliberate wicked intent of making the poor often pay more. The scheme is called council tax support.

Re your points about energy efficiency and private rented and prepayment meters- your own personal example is only about your own personal example. The facts are that privately rented homes are more likely to be less energy efficient and it’s also a FACT that using a prepayment meter costs more

BB in this area it’s very difficult to get second hand electrical goods and even if you do, there’s costs such as delivery and installation. I doubt it’sas easy as you suggest everywhere. And you would have to upfront the costs anyway.

Secondhand electrical goods are dodgy unless P A T tested with proof of such.
I wouldn't buy them as there are too many unscrupulous individuals about who are a danger to peoples lives with no other thought than getting themselves a quick buck.

You can be on certain benefits/low income AND still have to pay your own council tax!

British heart, hospice charity shops sell brilliant furniture and electrical goods at a reasonable prices. Accommodation can be furnished very cheaply from charity shops.

A £100 sofa isnt cheap if you dont have £100. You have to have the cash up front for those shops (and they're not that cheap either)

Good point EV

I once helped a guy who couldn't read. He loved Brighthouse and they certainly loved him.

I think the APR mentioned is 99%. Look at the payday loans percentages, they are much higher.

Hm that’s like comparing if you’d rather be shot or hung - not much of a choice either way

I remember Brighthouse being on the main news several weeks ago for the extortionate rates of interest that people had to pay. It is scandalous they are allowed to charge these amounts. Unfortunately it is people who are on really low incomes that buy from them as sometimes it is the only way they can afford a necessary household item like a washing machine etc. However I would not consider an Xbox an essential item ....wants and needs are entirely different.

Fgs ( your words) GabriellaG I am talking about very small amounts of money ( say up to £200) to enable a qualifying person to purchase a necessary item at a low interest rate ( the likes of rates enjoyed by many other people instead of the exhorbitant rates charged by BH etc.) The money could be repaid directly from benefits if necessary. Maybe I live in a different world to you, but I really can’t see a problem with this.
And it’s Nothing at all like borrowing to buy a car at no interest !

I understand gillybob but there are catalogues which have low interest rates over a number of months.
PayPal have never asked me how much I earn and, although I only used them when buying/selling small amounts, they offered me credit.
Having checked my credit file, I see that they made a search, so yes, I doubt anyone with a poor credit history would be eligible.
I do have sympathy for those who genuinely struggle, but have none for those who have the latest gadgets and clothes but cry poverty.

There should be government control over the amount of interest which can be charged.

However, HP was very popular in days gone by; my DM would buy an essential item on HP and when she had finished paying for it, then buy another item. I don't know what the interest rates were then, but it seemed to be an accepted way of buying things and in fact the only way for many families.

Renting televisions was also the accepted way of having a tv for very many years - probably paid for over and over again. We were considered unusual when we eventually bought a tv in the late 1960s or 70s.

As long as the rate of interest was not extortionate then it always seemed to be the way to slowly acquire household goods in the 1950s - remember, when we were told 'You've never had it so good'.

The problem is the lack of legislation regarding interest rates and the greed of these companies.

As for the advert, no-one has answered my question about why this is allowed but the Iceland advert was banned.
I find that morally wrong.

As you admit yourself GG catalogues PayPal etc. All do credit checks and if you can’t pass these you are doomed . I’m not talking about the latest gadgets just everyday necessities such as washing machines, fridges, cookers, modest TV etc .

PayPal do a credit check GG