Lending = Helping?

The first thing I read this morning
was this piece of news on BBC
"An affordable not-for-profit lending scheme"
for the benefit of the low income family

So how does it benefit the poor?
By giving a wider "choice of loan providers"
By diverting borrowing from loan sharks
Are they not wiping out their competitors?

They call the scheme affordable
and at 49.9% annual rate they charge
It is higher than the maximum by law
So where is the police and the judge?

When people cannot pay loan sharks
They pour some paint and smear your name
When people cannot pay legitimate lenders
They take away your house and all your game

Maybe I misunderstood the news
maybe I don't get the full picture
But its intentions I find incredulous
enough for me to give it some exposure

*for more information, read this