Omg apr 2356%

wendyphant

I have just seen the advert onthe telly for quick quid pay day loans and thought t here was a misprint on the screen and that maybe they had missed out the decimal point and it should have been 23.56%




OH NO


check the web site and it is 2356%:eek::eek::eek::eek::eek:

What is this legal loan sharking ? I can't believe it

CLAPTON

if you borrowed say 100 on one of these loan for say 3 weeks ..what do you think a fair charge would be? (bearing in mind the cost of staff, IT systems cost, profit etc)

wizk1

If I had a pound for each person who I've seen misunderstand APR...

It's a short term loan. If you borrow £100 one month, and the following month you have to repay it all plus £20, then that is considered fair in my opinion. But by law, all loan products, regardless of term, must clearly display the APR (ANNUAL percentage rate). Annual being the operative word here. You're not borrowing for a year, you're borrowing for just 1 month, but the amount of interest being repaid in relation to the amount you've borrowed would be the equivalent of 2356% for the whole year.

rsykes2000

If you lend your mate a tenner for a week then buy him a pint (at say 3 quid), then you have paid in effect a weekly interest rate of 30%. That works out at well more than the APR you have quoted above and that is why the APR for short-term loans is misleading, even though they have to by law publish the APR nowadays.

nomoneytoday

I think this sums it up...

Enfieldian

Oh dear, here we go again.

Were you thinking of using them OP or is it just a slow day at work?

jamespir

it is shocking but people still use them they prey on the desperate and needy

Wutang_2

jamespir wrote: »

it is shocking

Porquoi.....?

jamespir

Wutang wrote: »

Porquoi.....?

parce que son un très haut taux d'int!rêt

Malky

jamespir wrote: »

it is shocking but people still use them they prey on the desperate and needy

Does this not work both ways? The company offer a service, the customer chooses whether to use it or not. I'm not trying to defend these type of companies but they're here to do what any other company does and that's make money. Just fed up of similar posts on a daily basis and then the company always getting the blame for charging high interest rates when it's down in black and white before you sign on the dotted line.

wizk1

theartfullodger wrote: »

You think that's bad.. try those blood-sucking e**l b******s at wonga.com: They charge 2,689%!! As standard!! Can be higher??!!!!! They are all a bunch of people most sensibly-minded folks would regard as crooks: They could, of course, be wrong!


Cheers!

Lodger

Can I suggest you read the whole thread? Just to summarise (again)... the APR is meaningless for Payday loans.