Have you heard of controversial lender Latitude Financial Services? It's a company new to Australia and New Zealand that provides credit cards and high-interest loans to anyone that fits the bill – that includes low-income earners as well. CHOICE has slammed the group for opening up new avenues through which people can be financially crippled. Latitude has turned to flashy advertising in a bid to bring in new customers, and Alec Baldwin has come under fire for appearing in TV advertisements for the group.
"These are poor value loans and credit cards that can inflict financial harm on people," stated CHOICE Head of Policy and Campaigns Erin Turner to The New Daily in a January 12 article.
"It looks like this company is marketing extremely poor products with a celebrity's endorsement. I wouldn't go anywhere near them."
If you're saving to be able to afford a family holiday, or moving into a bigger house, taking out a credit card or a personal loan with Latitude Financial Services won't help – it might make it harder for you to achieve your goals.
Most recently best known for his impersonations of Donald Trump on Saturday Night Live in the US, Mr Baldwin speaks of "doing better with Latitude" in the advertisements, but doesn't mention the high interest rates and ludicrous fees on credit cards and accounts.
Why is taking a loan from Latitude such a bad idea?
Taking out a $4,000 unsecured personal loan from Latitude Financial Services could result in annual interest and fees more than 37 per cent above the principal amount, as reported by The New Daily. An interest rate of 29.99 per cent, a monthly service fee of $13 and an establishment fee of $140 all contribute to that.
Other credit cards from Latitude have interest rates of 24.50 per cent and 20.74 per cent.
In 2015, one of the most expensive credit cards in Australia was the GEM Visa with an interest rate of 22.99 per cent, according to CHOICE and reported by The New Daily. Now, however, the same card is being advertised through Latitude with an interest rate of 24.99 per cent, making it the most expensive Visa in the country, as seen on the Mozo Comparison Engine. Other credit cards from Latitude have interest rates of 24.50 per cent and 20.74 per cent.
With customer-owned banking at CAPE, these high-interest accounts just don't exist. We want our customers to benefit from having access to our accounts, not struggle to repay them for years. For more information, make sure you get in touch with our team today.
