39.9% APR Typical!!!!!!!!!!!

Dylanwing wrote: »

I will always defend The Money Shop (Only £13 per £100 - But you have to go to their shops) and Payday Loans. They offer a specific short-term product, and the charge is a fee, not interest. If they charged interest at 25%, the charge would be about £2 per £100 which would not even start to cover costs. And a £25 fee is better than incurring Bank charges at the above percentage.

Yes but, don't forget the 'shocking', 'how do they get away with it', 'oh my God!' and 'can this be legal?' brigade that don't have any comprehension or understanding of how APR's are calculated and the cost of making and administering small loans. Some people get very desperate, (myself included in the not so distant past) when I have had to put food on the family's plate and needed some short term help.

As you correctly point out a £25 charge for exceeding an overdraft limit by a fiver is far more of a problem. But these 'shock-horror' merchants are often the very same ones saying that these charges should remain and decry those reclaiming these outrageous charges. In an ideal world, everyone should live within their means and budget, but just occasionally circumstances prevail when this just aint possible.

So then I ask, where do these people turn? Ideally a credit union, but this is not always possible. The likes of Money Shop and Log Book Loans can be a life saver if used properly. And there is the rub really, a lot of folks who get that far down the line often do not learn their lesson. I certainly did, but I am the first to recognise that there has to be an availability for those in need. Where else do they turn?

I was going to complaim about my Hire Purchase Agreement, i got it through to check to see if i had been charged PPI just to be sure and i read the finanace agreement with Black horse (Chartered Trust) the car cost me £6969.00 and the term of the interest cost me £3226.00 which equals £10095.00 for a Fiat Punto R-Reg Nightmare !!!!! on the agreement it was a 15.7% APR What a fool i was and how nieve i was i Just worked out that i nearly paid 50% on interest on the loan over the course of the 5 years.