The Herald this morning has the shocking story of a solo mother who owes $35,259.56 on a $9,000 car. And much of it seems to be due to the simple expediant of doubling the sticker price because she asked for finance; that "$9,000" car actually cost her $17,999, before the hidden charges and usurious interest rates kicked in. This is deceptive and exploitative, and if it isn't illegal, it damn well ought to be. People should not be charged more for goods simply because they are poor.
This is yet another sign that our local finance industry is full of predatory sharks, and in sore need of tighter regulation.
I guess I'm not the bleeding heart leftie I always thought I was - I just can't muster up much sympathy for a beneficiary with no drivers license who buys a $9000 SUV on credit - especially not one that complains about the 'hidden costs' when the finance company has made her list those costs item by item in her own handwriting.
ReplyDeleteYou can't pass regulation that will protect people from stupidity.
You can't pass regulation that will protect people from stupidity.
ReplyDeleteNo, you can't - but you can pass regulations that will stop people from exploiting it. And that is a big part of the problem here.
She said she did not actually want to get out of the contract even if she could, "because what would we do for a car?"
ReplyDeleteWow. I don't think any legislation you can dream up could save this lady. Maybe CYFS should take the kid off the Mum for being too stupid.
Fool.
ReplyDeleteMoney.
There are many overly-trusting people just like her. Call all manner of names you want, but n reality she needs help to sort through her own limited thinking.
ReplyDeleteMoney is not something we are all really, really good at dealing with and the shark loan company that exploit this lack of skill and confidence are bastards pure and simple. This is something like when an older guy exploits a girl who has drunk too much....civilised people protect the vulnerable, not rape them blind.
This practise has been going on for years and much of the poverty of Pasifika and Maori whanau can be attributed to servicing these extortionary debts. There is still a need for appropriate education in this area. Unless communities are empowered with true knowledge they will always be vulnerable to exploitation.
ReplyDeleteMarket economics I/S. There's little point blaming these problems on those who do what the market encourages. And you can regulate away, but you're not going to change the essence of the system.
ReplyDeleteAny useful education in this area can't just be about financial literacy though. It has to be about resisting hard sales technique.
ReplyDeleteShe said "I don't have a license." They said "we'll pay for you to get one."
Salespeople like this will try anything, anything at all, to counter your objections and prevent you from leaving until you have bought. They know how to exploit your hesitation, your good-will and your ego to make the sale.
I'm just saying its misguided to criticise the individuals who conform to market economic norms or those who get shafted by them, instead of criticising the market itself.
ReplyDeleteI'm just saying its misguided to criticise the individuals who conform to market economic norms or those who get shafted by them, instead of criticising the market itself.
ReplyDeleteI'm just saying its misguided to criticise the individuals who conform to market economic norms or those who get shafted by them, instead of criticising the market itself.
ReplyDeleteNo that's the price of market economics. In fact people are encouraged to be stupid in a market economy, to the point where they will even destroy their own environment.
ReplyDeleteIn a substantive democratic economy stupidity is discouraged because externalities are ideally eliminated.