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  • budget_counsellor_shaz
    • #2
    • 13th Oct 07, 9:14 PM
    • #2
    • 13th Oct 07, 9:14 PM
    Saw a car finance company today with this as their "headline" figure

    Whilst I appreciate APRS show risk Id have to say once a loan reaches that sort of necessity for APR then it should be illegal as they are basically saying the risk is massive
    Originally posted by Iamthesmartestmanalive
    I agree it is amazing that these rates have not been capped and made illegal. I feel very sorry for those that get sucked in by the sales hype:rolleyes:

    Shaz
    • nomoneytoday
    • By nomoneytoday 13th Oct 07, 9:30 PM
    • 4,621 Posts
    • 2,777 Thanks
    nomoneytoday
    • #3
    • 13th Oct 07, 9:30 PM
    • #3
    • 13th Oct 07, 9:30 PM
    Just wait for someone to highlight Providents 177% APR

  • budget_counsellor_shaz
    • #4
    • 13th Oct 07, 10:01 PM
    • #4
    • 13th Oct 07, 10:01 PM
    Just wait for someone to highlight Providents 177% APR

    Originally posted by nomoneytoday

    Oh my life really:confused:

    Shaz
    • jmarko
    • By jmarko 13th Oct 07, 10:15 PM
    • 3,898 Posts
    • 4,648 Thanks
    jmarko
    • #5
    • 13th Oct 07, 10:15 PM
    • #5
    • 13th Oct 07, 10:15 PM
    is 177% actually legal?
    • HappyMJ
    • By HappyMJ 13th Oct 07, 10:21 PM
    • 20,454 Posts
    • 17,001 Thanks
    HappyMJ
    • #6
    • 13th Oct 07, 10:21 PM
    • #6
    • 13th Oct 07, 10:21 PM
    177% that's cheap

    try http://www.bristol-finance.co.uk/Loans_and_Hire_Purchase.htm it's a bargain at only 401.4%

    Regular savers earn 6% interest (HSBC, First Direct, M&S) Loans cost 2.9% per year (Nationwide) = FREE money.
  • BigMan
    • #7
    • 13th Oct 07, 10:25 PM
    • #7
    • 13th Oct 07, 10:25 PM
    That's pennies

    how about

    Typical 1355% APR

    http://www.paydayuk.co.uk/getting-started/our-charges.html

    ok, max is a 30day loan, but still
    Regards,

    BigMan
    Trust Deed - Discharged May 2012
    • maninthestreet
    • By maninthestreet 13th Oct 07, 11:12 PM
    • 14,420 Posts
    • 12,506 Thanks
    maninthestreet
    • #8
    • 13th Oct 07, 11:12 PM
    • #8
    • 13th Oct 07, 11:12 PM
    That's pennies

    how about

    Typical 1355% APR

    http://www.paydayuk.co.uk/getting-started/our-charges.html

    ok, max is a 30day loan, but still
    Originally posted by BigMan
    Does anyone agree with the figure of 147359739444% APR for a 1 month overdraft of 5 with 25 charges?
    • Dylanwing
    • By Dylanwing 14th Oct 07, 4:06 PM
    • 1,943 Posts
    • 2,495 Thanks
    Dylanwing
    • #9
    • 14th Oct 07, 4:06 PM
    • #9
    • 14th Oct 07, 4:06 PM
    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.
    • ic
    • By ic 15th Oct 07, 10:06 PM
    • 2,366 Posts
    • 1,211 Thanks
    ic
    Meh, what about borrowing between 500 and 50,000 at just 343.3% APR?

    http://www.logbookloans.co.uk/

    • nomoneytoday
    • By nomoneytoday 15th Oct 07, 11:17 PM
    • 4,621 Posts
    • 2,777 Thanks
    nomoneytoday
    I will always defend (Only 13 per 100 - But you have to go to their shops). They offer a specific short-term product, and the charge is a fee, not interest.
    Originally posted by Dylanwing
    Dress it up how you wish- 13% per month is not a "bargain" ... APR calculatons include fees as well as interest, and 13 per 100 per month is something like 300% APR !!

    If you were to borrow the same 100 for one week with a 13 charge that comes out as about 57,000% APR
  • malestrom07
    And someone would consider taking a loan with above 39% apr on a vehicle that starts to depreciate the moment you buy it. it would be interesting to do the math on a particual car and measure depreciation versus the high apr, it really is quite scandalous
    • inmypocketnottheirs
    • By inmypocketnottheirs 16th Oct 07, 12:07 PM
    • 4,537 Posts
    • 2,159 Thanks
    inmypocketnottheirs
    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.
    Originally posted by Dylanwing
    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?
    Don't lie, thieve, cheat or steal. The Government do not like the competition.
    The Lord Giveth and the Government Taketh Away.
    I'm sorry, I don't apologise. That's just the way I am. Homer (Simpson)
    • Dylanwing
    • By Dylanwing 16th Oct 07, 12:47 PM
    • 1,943 Posts
    • 2,495 Thanks
    Dylanwing
    Spot on. On another thread, the poster went over his OD limit by 105 and was charged 100 - Using the money Shop, he could have paid an up-front fee of just 16.90 for a 130 loan. The "Shock Horror" Brigade need to calculate the APR on unauthorised overdrafts and associated unpaid items - Well in excess of 300% I suspect!
  • Scottrobson
    Hire Purchase. Nightmare 50% i paid back over 5 years.
    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.
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