est. 2007

Barbados Underground

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PREDATORY MARKETING and the Vulnerable in Society

Submitted by Cherfleur Courts (Barbados) Ltd aka Unicomer is offering Cash Loans at THIRTY PERCENT interest. How are they doing it and to whom? Courts advertises in the Classifieds section with the entreaty of waiving the payments for six months if and when the customer is made redundant. Naturally the who are the young vulnerable…

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Submitted by Cherfleur

Courts (Barbados) Ltd aka Unicomer is offering Cash Loans at THIRTY PERCENT interest.

How are they doing it and to whom?

Courts advertises in the Classifieds section with the entreaty of waiving the payments for six months if and when the customer is made redundant. Naturally the who are the young vulnerable teen mothers, most of whom are in the Informatics Industry in the Harbour industrial Park.

It’s a wretched pipeline, like the ‘cradle to grave’ one in USA. Desperate to acquire much needed items on a subsistence wage, this group of the population in this sector is easy prey to such predatory practices and false marketing.

Crucible recently laid off a second batch of employees for this year. In June they advised the Labour Department that they lost a Contract and was forced to sever employees but that the amount was less than the 10% that would require Union/Labour Department Consultation. I would hope that Mr Mayers of the Labour Department investigate to ascertain whether Crucible lost another Contract in this half of the year or it is the same Contract they are now relieving more employees from. Working the loop holes of the Law (perhaps not).

Whatever the situation these employees are now on the bread line and some of them who had these treacherous loans from Courts approached the firm and applied to get the waiver only to be told by the floor Representatives that they do not know or never heard of such offerings. FALSE ADVERTISING.

So unemployed and cash strapped these vulnerable ladies have to cough up much needed dollars to service these illegal loans.

Courts is not licensed to lend money’ or are they? Nevertheless 30% is Usury. The Banks and Credit Unions are being had by Courts.

Attempts to reach the Director, Consumer Finance or the Marketing Manager went unanswered.

30 RASSHOLE percent!

MERRY CHRISTMAS EVERYBODY.

216 responses to “PREDATORY MARKETING and the Vulnerable in Society”

  1. William Skinner Avatar
    William Skinner

    Slowly but surely we are becoming one gangster run inner city. Regulatory agencies only exist on paper and fancy offices. Encouraging development dependent on international loan sharks. The poor being left unprotected to be preyed upon by bogus financial set ups. There is a gathering that has been gathering for over five decades that will soon visit and it seems there is nobody in place to grapple with the impending catastrophe.
    We have decided to import all types of investors who are nothing more than rapists going from country to country with their ill gotten gains.
    Here we have an example of a bold faced rip off of the poor and we respond by asking or suggesting that compound interest be taught in primary school.
    We talk about defending the poor and vulnerable while praising an economic policy that retrenched them. We talk about the poor and vulnerable and then debate why a citizen should go go prison for stealing a salt bread.
    More and more we are failing to radically protect the poor and using their plight as an intellectual exercise We no longer see a society but have embraced the easy way out. Experts in finely tailored suits making statements of pie in the sky progress while the country rapidly deteriorates.
    We approach 2020 with glib talk and a perverse pseudo intellectualism designed to convince the overburden masses that chalk is cheese.
    Courts or court it’s the same old story the systematic marginalization and exploitation of the most vulnerable.
    @ Hal and @ WURA have it right. A failed political Duopoly and a new breed of Massa.

  2. Vincent Codrington Avatar
    Vincent Codrington

    David BU

    If that thinking makes, you happy hold on to it. But the majority of Bajans do apply their ability to calculate interest costs and do make sensible financial decisions. Moreover, there is a regulation that the true interest costs be published …a rule that is honoured in the breach these days.

  3. David Avatar
    David

    @Vincent

    Feel free to put all your stakeoon the view. The rampant conspicuous consumption behaviour and bearish outlook to investment shown by Barbadian conflicts.

  4. Vincent Codrington Avatar
    Vincent Codrington

    @ David BU

    Bring the evidence. I prefer to deal with numbers.
    Which social group is into this conspicuous consumption?
    How do you define conspicuous consumption?
    Who is financing this conspicuous consumption?
    And how?

  5. David Avatar
    David

    The citizen is on remand William because he breached bond. We understand your hyperbole these days. Conflating all kinds of issues to fit your argument.

  6. Hal Austin Avatar
    Hal Austin

    @ Vincent

    What I like is that people read a book on popular economics and assume they are worthy of a Nobel Prize. Or do a degree or diploma in the discipline and become immediate experts, on everything from finance to crime. The politicians are the worst at this. It does not make sense trying to explain things, because people Google and come back to argue.
    If Googling was an alternative to formal teaching, why spend US$100000 on a Harvard MBA when you can buy a lap top, connect to the internet and do that for $2000.

  7. David Avatar
    David

    @Vincent

    You want numbers?

    Seriously?

  8. Vincent Codrington Avatar
    Vincent Codrington

    @ David BU

    He breached the bond by stealing the $0.65 cent salt bread. Stealing the salt bread triggered the suspended punishment. That is how the law works. That is a connection not a conflation. The crime is the theft not the 65 cents.

  9. David Avatar
    David

    @Vincent

    Let us see what happens when he returns to court next month. Let us hope he does not end up like the few that were forgotten at Dodds. We were assured by the authorities it should not recur.

  10. Hants Avatar
    Hants

    Lucky Bajan youngsters. Hope they learn to be strong swimmers.

  11. William Skinner Avatar
    William Skinner

    @ David
    I look forward to somebody going to jail over Cahill; I am still waiting for somebody to go to jail over Greenland; I have given up on somebody going to jail from the Duffus Comission; I don’t think anybody going to jail for the St Joseph Hospital Enquiry; I still waiting to hear what will happen for pulling a gun in parliament or cussing a MP and including his mother’s private parts; l look forward to some body going to jail for thieving a transport bus or the other six we can’t find.
    My brother in the meantime, I rejoice at an almost destitute citizen going to jail for a 60 cents , hopefully not rat infested, salt bread , without even a piece of cheese or ham.

  12. Silly Woman Avatar
    Silly Woman

    @David December 27, 2019 8:04 AM “What is a bank?”

    So David you know that according to the BU intelligentsia I silly and simple, so I went to my friend Professor Google and asked:

    “What is a bank in simple words?”

    And I received this reply:
    “A bank is a financial institution where customers can save or BORROW money.”

    So Courts IS engaging in banking, and I am surprised (although I shouldn’t be) that none of the big boy and big girl regulators have put a stop to this.

    And of course simple, silly people like me understand that capitalists are always ready and willing to pluck the financial illiteratti.

    THE VERY SURVIVAL OF THE PREDATORS IS DEPENDENT ON ABUNDANT PREY.

    But without prey, the predators too will DIE.

  13. WURA-WAR-on-U Avatar
    WURA-WAR-on-U

    Even strong swimmers get into difficulties in strong undercurrents, the issue is no life guards and people not trained in CPR…basic things, basic knowledge, that is what is making the island look backward despite all the “punching above the weight” nonsense talk and false rhetoric…

  14. Silly Woman Avatar
    Silly Woman

    We are not all backwards. And in any event not having YET learned to do a task is not a sign of backwardness. My sister did a rescue at Browne’s beach a few years ago. The child survived, fortunately the traumatic event was completely wiped from his brain, but his parents were traumatized..

    But yes more of us need to learn CPR. ANYBODY can learn to do CPR.

  15. WURA-WAR-on-U Avatar
    WURA-WAR-on-U

    “I don’t think anybody going to jail for the St Joseph Hospital Enquiry; ”

    most if not all of those crooks should be dead by now. ya might have to wait for the others to die for certain things, but if you are lucky ya might get to see some go to prison for some really rotten things because they have committed many, many crimes, most of which are still to come to light, don’t they have Donville in an ankle bracelet. Have HOPE.

  16. Tron Avatar
    Tron

    I really don’t know why you guys are yelling about 30%. Any credit to the impoverished native masses is a huge risk. It should also be noted that the loan is not secured by a mortgage. 30 % is therefore OK.

    I’m upset about something else entirely. The pretentious funeral service for Sir Warwick. They’re pretending he did something for Barbados. He lived his whole life at the expense of the Barbadian taxpayer. A typical example of the blue plantation elite. Those present at the service: Apart from the Most Honourable Prime Minister, a collection of under-performers and losers, all spiced up with a dripping commentary from the mouth of Donville Inniss. A banana republic indeed.

  17. Silly Woman Avatar
    Silly Woman

    Dear David:

    I love you very much, but in this Hal Austin and Vincent are right, and you are WRONG. You need to “man-up” and apologize to the BU intelligentsia.

  18. WURA-WAR-on-U Avatar
    WURA-WAR-on-U

    Many don’t care because they are too disgusted but not one of these uppity negros with their false titles and taxpayer funded lives EVER thought there was a time to say that what they were doing is wrong and STOP…now it has reached the stage where they are all exposed and some are of the belief that it is even worse than what we were talking about all these years…and all indications are that it is indeed much, much, much worse..because they are too out of control, can’t get rid of the minority thieves out of the lives of the Black population…even more corruption is on the cards….yes, they are indeed doomed, just as they all deserve…..IN TOO DEEP.

    we await their imminent CRASH..

  19. NorthernObserver Avatar
    NorthernObserver

    First, the author seems most concerned about Courts not honouring a form of unemployment insurance, whereby payments are suspended for a period or until the person is employed again. These are usually very carefully worded, such there might me a 6 month hiatus on INTEREST only, not payments. If one cannot read, nor understand, do not sign. But I know this falls on deaf ears, the desire to get that new appliance or sofa, is all powerful.
    While it may sound odd, my experience is the bankruptcy laws relating to persons (not corporations) drive much of this corporate behaviour. In places, where bankruptcy is “easy” [relative term] and void of the ‘social stigmas’, lenders can get burned easily, so they avoid the ultra risk loans and customers. However, were it is not, they can place a proverbial noose around the borrowers neck, and milk them almost eternally.
    Store credit cards are equivalent, only they charge 18-22% and not 30%. A simple risk return ratio.

  20. WURA-WAR-on-U Avatar
    WURA-WAR-on-U

    Silly Woman…stop taking offense, it’s ya silly leader all over the place boasting about punching above weight, countries that punch above their weight KNOW…and HAVE basic CPR and life guards available and on call..

    You will find 5 graders in some countries already know CPR…but boasting and boasting about how great ya are and don’t even have the basics says THAT YA BACKWARD…

  21. David Avatar
    David

    @Northern Observer

    Amen.

    Hope Vincent is reading, we have many so-called educated citizens who do not read the fine print because the prize is always to land the shiny consumer durable.

  22. William Skinner Avatar
    William Skinner

    The following statement was issued by Prime Minister Mia Amor Mottley on the passing of Sir Warwick Franklin.

    I wish, on behalf of the Government of Barbados, the family of the Barbados Labour Party and Barbadians generally, to extend sincere condolences to the family of Sir Warwick Franklin on his passing last night.

    I extend condolences too to the leadership and members of the Democratic Labour Party, recognising that Sir Warwick was faithful to the service of his party for much of his adult life.

    He had the distinction of representing the constituency of St. Philip North in the House of Assembly for three terms, starting in 1981, during which time he also served the country as Minister of Agriculture, Food and Fisheries and Minister of Labour and Consumer Affairs.

    While we operated on different sides of the political divide, I cannot say other than that Sir Warwick practised his craft with respect for his opponents, choosing to use language that supported his political cause without descending into that gutter that has too often characterised politics.

    To his widow, Grace Lady Franklin, his children, grandchildren and extended family, I wish you God’s blessing in this your time of sorrow. May his soul rest in peace. (PR)

  23. Silly Woman Avatar
    Silly Woman

    @David December 27, 2019 11:50 AM “The citizen is on remand William because he breached bond. ”

    What if he had been on bond for another bread and fish issue?

  24. Silly Woman Avatar
    Silly Woman

    @William Skinner December 27, 2019 12:39 PM I rejoice at an almost destitute citizen going to jail for a 60 cents.”

    In truth the salt bread was unlikely to be worth 85 cents, or 65, or even 60. Salt breads are typically made without preservatives, which makes them nice and yummy when very fresh, but moldy or hard enough to lick down Nelson when stale.

    I would bet anything that the salt bread was worth 5 cents at most.

  25. Silly Woman Avatar
    Silly Woman

    @Tron December 27, 2019 1:26 PM “I really don’t know why you guys are yelling about 30%. Any credit to the impoverished native masses is a huge risk.”

    So Tron where the “native masses” going to run to to escape extortianate debts”

    We in going nowhere.

    You can always wait until we dead, then grind our bones to make your bread.

  26. Sargeant Avatar
    Sargeant

    Everyday on this blog someone turns over a rock and we act surprised at what is discovered

  27. Piece the Legend Avatar
    Piece the Legend

    @ Silly Woman

    MAN UP WHAT!

    He is not going to back down from his Stoopid position.

    But here’s what de ole man going do to show him up!

    Here is the text on the actual letter!

    “…We Miss You
    COURTS READY CASH WANTS YOU TO BE READY FOR ANYTHING THIS SEASON!

    What would you do with some additional cash?

    You can spruce up your home, tick off your Christmas list or treat yourself this Christmas!

    WE GUARANTEE
    Cash In Hand!
    The Fastest Loan Approval
    Automatic Payment Protection
    No Payroll Deduction
    Up to 48 months To Repay

    Apply today! Visit any of our seven convenient locations and present this letter along with your National ID or a valid passport, recent job letter, pay slip, proof of address and two references (references must have different addresses)…”

    He does talk cause he got a mouf but de ole man does talk because I gots evidence.

    And 2020 gine be a year of sharing dat evidence to de World

    http://imgur.com/a/L5XK7OK

    This is the actual letter with the addressee information hidden.

    Now one has to be a real illiterate not to understand these words

    “…WE GUARANTEE Cash In Hand!…”

  28. Silly Woman Avatar
    Silly Woman

    Piece you know that i rarely agree with you, but in this you are corect. We are not talking about Corts engaging in their primary business of selling shiny new apliances, or comfy couches. Yes we know that the hire purchase interest rates are high, but at the end of the 3 years or so payment period the stove, fridge, washer etc. if a good brand are still in good condition, and will remain in good condition for sometimes a decade or more, so the consumer gets some breathing space, but to send cash for “Christ-mas” splurging, that is another matter and i don’t like it, and yes i have been a Courts customer, my first stove bought from them, a “big brand” and with my good care lasted for 17 years, so the cost of that consumer durable was in effect spread over more than a decade and a half.

  29. Chris Halsall Avatar
    Chris Halsall

    @Sargeant: “Everyday on this blog someone turns over a rock and we act surprised at what is discovered

    Please forgive for this, but did you know that “Usury” is actually mentioned (and condemned) in the Qur’an? “Riba.

    Please see https://en.wikipedia.org/wiki/Riba and https://www.soundvision.com/article/a-muslim-perspective-on-credit

    This is one of the reasons Muslims often do so well. Rather than get disabled by financial institutions, they instead get help from friends and family. During a Muslim wedding, for example, the Bride and Groom will often receive tens if not hundreds of thousands of dollars in gifts to help them get started. This is then repaid over time, often years later, when gifts are then returned to the lender’s children by the original borrowers.

    And let’s not even get into the incredible burden student loans can have on some young people’s lives…

  30. Bajan in NY Avatar
    Bajan in NY

    @Hal AustinDecember 27, 2019 8:19 AM
    If Courts is effectively lending money to consumers to purchase its own goods, it is carrying out the function of a bank and should be regulated as a bank. Banking regulations 101.

    Another load of bullshit from you. Are Macy’s, Amazon, etc. registered or regulated as banks? You can purchase items from such places on terms to pay over a period of time. You are always coming here trying to give the impression you are an expert on financial matter. Stop the bullshitting in the coming year. Please.

  31. David Avatar
    David

    @Simple Simon

    Do you understand what the debate was about earlier?

  32. Piece the Legend Avatar
    Piece the Legend

    @ Bajan in New York

    Did you read the Courts Letter above?

    Why hit out at Mr. Hal Austin?

    No one is saying that you cant have a credit line for in store purchases

    No one is saying that the purchaser is being forced to buy the items at usurious rates

    What one is saying is that IN LENDING CASH, AS PER THEIR WRITTEN INVITATION to de ole man house, DEM IS OPERATING LIKE A BANK!

    Now, IN AMURICA, or any civilised country, the various regulatory entities would, find a courts client or a few of dem, AND LOOK TO LOCK UP COURTS MANAGEMENT for brekking de law!

    But Barbados is a Banana Republic so not one *** going happen cause de Fear Trading Commission and Financial Services Commission and the Central Prank of Barbados are all female rabbits

    Like the Honourable Blogmaster you also owe Mr. Hal Austin an apology.

    But de ole man dont tink he gine get one heheheheh

  33. Sargeant Avatar
    Sargeant

    @Piece

    I note the date of the letter, Nov.19th just in time for Xmas (what a coincidence) but it is up to the consumer to accept the offer. The argument about whether it is a bank or not seems moot as it may not be accepting deposits but it is in the money lending business a separate activity from its hire/purchase business.

  34. David Avatar
    David

    @Sargeant

    As Artax pointed out above almost all of the car dealers lend money, they have finance companies. Let us not forget Cave Shepherd. They are regulated as non banks by the FSC.

  35. Chris Halsall Avatar
    Chris Halsall

    @PtL: “Now, IN AMURICA, or any civilised country, the various regulatory entities would, find a courts client or a few of dem, AND LOOK TO LOCK UP COURTS MANAGEMENT for brekking de law!

    Empirically, incorrect.

    I don’t normally “do” YouTube, but please see https://youtu.be/PDylgzybWAw

  36. Silly Woman Avatar
    Silly Woman

    I got one of the letters too. It went directly into my garbage bag.

  37. Silly Woman Avatar
    Silly Woman

    @David December 27, 2019 3:03 PM Simple Simon. Do you understand what the debate was about earlier?”

    WHAT???

    Sincerely

    Silly Woman for

    Simple Simon

  38. Sargeant Avatar
    Sargeant

    @David

    I don’t see car dealers offering cash loans as is evident in the copy of the posted letter, perhaps it is not a bank but how does it get from financing its furniture and appliances purchases to offering cash money loans?

  39. David Avatar
    David

    @Sargeant

    As Artax mentioned Courts has and entity that is registered as a financial company. You are aware car dealers offer cash backs? What matters here is that retailers have diversified their business by offering non core financial services.

  40. NorthernObserver Avatar
    NorthernObserver

    The seller doesn’t even have to own a finance company, they can make a deal for ‘financing services’ with an independent. Some of these financing outfits even have a “warranty service” group, and again for a fee they handle these calls and service. Once you train the consumer to be in debt, and get delivery with only a signature and a legal promise to pay, ownership is rare. And as online sales grow, many of these “retailers” never touch the product.
    There is more money in financing the sale than in item profit.

  41. Hal Austin Avatar
    Hal Austin

    @ Sargeant

    There is a difference between hire purchase, personal contract hire and personal contract purchase. Car dealers usually use PCPs (lower monthly payments and a lump sum at the end) or PCHs (effectively renting a car).
    APR on vehicles can often be higher than is indicated by the dealer (interest rates and APR are different). Dealers generate more profits from selling PCPs and warranties than sales. Dealers get a higher bonus the higher the interest rates.
    Always read the small print.

  42. John A Avatar
    John A

    If you all think on it a while you will see why Courts have gone this road. Basically operating only as a retail entity is no longer profitable. If you look at the financials of any retail business you will see most seldom make in excess of 3% of their gross sales in net profit. It is not hard to understand therefore why 30% on a loan is so enticing. Also it calls for way less staff and inventory expenses etc.

    Basically it boils down to companies like courts using what they import simply to sell a loan. Was there no demand for this service it would not exist. Our lazy ass banking sector who basically act as financial vultures and nothing more, have no interesting In perusing this business as they see it as too much trouble. As a result courts, Ready Cash and others are free to exploit the market.

    Don’t the banks do the Same with their credit card charges at over 20% too?

  43. Sargeant Avatar
    Sargeant

    @David

    I wasn’t aware that Car dealers could offer “cash back”, I’ll file that under the category “New learning” as I learned something today.

  44. Hal Austin Avatar
    Hal Austin

    @ John A

    Compliments of the season. The future of banking is fintech. If you run a business, any business, and stand still you are a loser. In an immature financial environment consumers pay a heavy price.
    Just look at insurance: income protection; mortgage payment protection; PHI, etc, our insurance protection market is hugely underdeveloped. If gaps remain in the market innovators will move in.

  45. Chris Halsall Avatar
    Chris Halsall

    @Hal: “Always read the small print.

    Indeed! And not just read, but also understand what is being agreed to. Including for “free” online services.

    The “language” is often very long, and very complicated.

    Not that it really matters anymore. Just about every move any of us make, everything we say, everything we text, is already known by many different entities. Almost all of whom do not have our best interests at heart.

    All because of those little supercomputers we each carry on our belts or in our purses…

    Seriously. (Sorry… That might come across as a bit tangential, and a bit negative.)

  46. John A Avatar
    John A

    @Hal.

    Seasons greetings to you as well. You are correct and that is why we are seeing all of this unfolding now.

    The banking sector has its rules from its foreign owners which they must follow as directed. These areas like pay day loans etc, are seen as not being worth the hassle perusing by them. They want the credit card users who preferably do not clear they card balance monthly and large cooperate clients. It’s there the profit lies. Catering to granny Browne who is 80 and has $8000 on her Account is now deemed a nuisance client. Even the previous lucrative car loan market is gone, with loan rates for cars now running below 5% if you shop around.

    Yes the whole game is changing and new players are now going to exploit the areas the banks don’t intend to touch.

  47. Piece the Legend Avatar
    Piece the Legend

    A car dealership offering a loan to finance its car purchases or car parts IS NOT THE SAME AS COURTS LENDING MONEY TO DINACE ANYTHING!

    That means it’s a bank!

    Which part of that is so hard to understand?

  48. cherfleur Avatar
    cherfleur

    @Artax et al
    Simpson Motors offers financing for their cars. That is very different from “cash loans”. Simpson only offers the facility for customers to buy/borrow Simpson Motors’ goods. That does not make them a Bank or runs afoul of their license for financing.

    Get it straight… Courts is offering cash in the people’s hands so they can go anywhere and buy anything: goods, hair, shoe, tampons – none of which could be had at courts Barbados. That’s a little different from ‘financing”
    But what is odious is Courts advertised IN THE CLASSIFIEDS that upon being severed they will waive payments for six months. That’s a closer for persons working in the offshore and informatics industry with shaky employment.

    Courts top management makes these decisions and executes them and( it would appear) that they do not pass it down to the floor Managers or Reeps, either negligently or maliciously. That is criminal and unethical.
    .

  49. cherfleur Avatar
    cherfleur

    @ nextparty246
    The individuals I spoke with took loans of $2000. I am told that is the minimum and the Plan is set at a 2-year repayment period. I do not know what the maximum amount allowable is (depends on elibiblity). The Managers did not return my calls.
    I do not know what Axcell et al rates are but 30% on loans COMPOUNDED is frigging high. Too goddam high. The Banks and Credit unions do not use such scalding rates of interest. Courts is competing fiercely and unfavourably with them.

    Whats more Courts does not tell upfront of the rate of interest. They bank on/ beckon /prey on those vulnerable in society (with weak family support, desperate for finance facility, etc), thus they do not ask the piercing questions (read the fine lines). But there are no fine lines.

    Customer asks for an amount, the Representative does the calculations on the computer and tells you the monthly payments (for the 24 months). Much later it is realized what the total % repayment is.

    I discovered that its 30% COMPOUNDED from vasking the piercing question and was torpedoed.

  50. cherfleur Avatar
    cherfleur

    @ John A
    The Banks may lend cash via Credit Cards at 205 plus, but they are licensed to do so. Licensing doesn’t mean simply a piece of card on the wall its large fee to the Government which is used to offer other services (social) to citizens.
    Further, upfront the banks tell you (or it is on the agreement) what the interrest rates are. Courts doesn’t/didn’t.

    True the banks don’t want to cater to Granny with small money and there is a niche market for small, easy to get loans but FTC needs to look into the interest and in the case of Courts they need to honour their claims as advertised.

    Why don’t the Cashiers and Account Managers know of the 6-months waiver dooflicky?.

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