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Payday UK 1,286% APR
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baby_boomer
Posts: 3,883 Forumite
in Loans
As banks reject 5 million credit card and loan applications in the last 6 months, some will find their way into the arms of legalised loan sharks 
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Sunday Herald - The loans that are really toxic
1,286% APR is the going rate for a £100 tide over loan from Payday UK. I thought loan sharks usually stayed out of sight on the back streets?
Not a loan you should forget to pay off, or take out in the first place :eek:
.Sunday Herald - The loans that are really toxic
1,286% APR is the going rate for a £100 tide over loan from Payday UK. I thought loan sharks usually stayed out of sight on the back streets?
Not a loan you should forget to pay off, or take out in the first place :eek:
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Good evening.
My first post here. Hoping someone can offer advice.
Took out a loan with payday uk last month for £100. Due to repay £125 on 15th October. The loan was paid into my bank account no problem. I then went on holiday for 2 weeks on 11th October thinking everything would be fine. I was in Cuba and had no phone or email access. On my return today I have an email from Payday UK to advise they were unable to collect the £125 as my bank did not authorise it. They were not open today so unable to contact. I did call my bank (A&L) who advise that I did have the available funds on the 15th but due to the time span they could not go back as far as 15th to see what had happened. They suggested that perhaps payday had try to collect the money the day before! There has not no change to my bank details so there should not have been a problem.
I will obviously call them first thing tomorrow but now worried due to the high interest rate and the fact they have been trying to contact me but i was not answering phone.
Has anyone else had this problem with them and can offer some advise please?0 -
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Whilst not defending Payday loans, because I know nothing about them or the companies that provide them, it is important not to get caught up in the media hype that gets brewed up when headline rates are quoted.
APR's are not a good measurement of the cost of short term loans, because they are vastly distorted by the time element.
If my mate lent me £25 for a week and at the end of the week I paid him back in full and also bought him a pint costing £1.60 as a thank you the APR for that transation is 2419% !!!0 -
I find Payday loans a useful resource to have available. It's certainly a lot better pay £20 on £100 loan than paying £25 unpaid item fees and associated OD fees.Cashback Sites
Quidco - £285.07 (Since July 07)
Bank Charges
HSBC - £4210 RECLAIMED!!
Nationwide, Cahoot, Alliance and Leicester - I'm coming for ya!0 -
APR means nothing on a payday loan. The clue is in the "A". ANNUAL percentage rate. Since you dont keep a pay day loan for a year, it makes a mockery of the APR system.
APR is increasingly becoming outdated and distorted in many of the ways in which it is used. But since the FSA are on too much of cruisade to put the squeeze on small businesses, it is unlikey anything will be done about it.0 -
But it isnt. Thats my point. It assumes you borrow over a 12 month period. You dont borrow a pay day loan over 12 months.
Same goes with car insurance thats payable over 9 months.....my car insurance documents show a massive charge for credit as I pay over 9 months, yet in reality I do not pay what it states, as I dont have the credit for 12 months, which APR assumes you do.0 -
ROFL.
Yes it does.....thats why its called the "Annual" percentage rate.
:rolleyes:0 -
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Managed to sort this with a quick phone call. In the end it was my error as I have given them the incorrect expiry date for the debit card. They took the payment with no additional costs.0
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So they charge NO additional charge for inconvenience, or DD failure. can think of other so-called "reputable" lenders who would have stung you a lot more for such an error. These places fulfill a need for short-term borrowing, it may look expensive, but as pointed out, is a lot cheaper than Bank rip-off charges. If the Banks had to advise the APR for their fees, the rate would be astronomical!0
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