177% apr on £500 loan

sconhead

they also owned Yes car credit which they have now shut down after being exposed on a tv prog for excessive interest rates and poor service

Zippy123

Also remember that APR is an odd thing - they have to include any fees in the calculation and have to gross it up to an annual amount based on £1500 loan. If you look at the Natwest Black card, one of the most exclusive credit cards available (have to earn over £70k to be able to apply) in the UK it has an APR of over 50% but an interest rate of 12% - they have a high annual fee that APR calculations take into account.

Absolutely correct. My work's lease car has an APR of about 40% but the actual interest rate is about 8%. The difference is because they pay for road tax, tyres, maintenence, servicing etc which is all included in the APR.

BTW when they buy an 18k car for 11k from the manufacturer it can be cheaper to lease then to buy.

starlite_2

inmypocketnottheirs wrote:

Why should Government legislate for idiots?

Thats a fairly offensive attitude..
these companies really prey on the vulnerable..we once got a leaflet from them that was a printed £50 note...imagine not having enough money to feed your children and something like that comes through the door..of course you'd be tempted!
apparantly they have been investigated many times and do such things as hound people to renew loans and borrow more.
anyone in genuine need can get an interest free loan social security, but thats not a widely published fact and ought to be.

inmypocketnottheirs

Apologies, not intended to be offensive, but we are rapidly turning into a nanny state, legislating for the sake of legislation. There are no guns at heads here forcing anyone to borrow money. If someone does not have the financial profile to borrow from a main stream lender then they must expect to pay accordingly. It is a very unfortunate fact of life that we are not all equal.

leesmithg

stitch69 wrote:

Hi
Just a quick post as im new here. i received a letter this morning offering a £50 to £500 loan with a typical apr of 177%, i just think this is ridiculous and really worrying. the company was called Provident personal Credit. im just wondering if there is a law against APR's that are this high. has anyone seen higher ?
thanks

stitch69

There was a TV show on TV a couple of years ago highlighting what sharks they are.

Never take out a loan.

Save the money up usually the sales arrive and typically around Easter and Xmas and the prices are less than half.

Credit is a dirty word that destoys peoples lives.