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High APR

emaa123
emaa123 Posts: 6 Forumite
my daughter has been offered an unsecured loan today with welcome finance with an apr of 61.8%. I am horrified and have asked her to cancel it! is this just a way of people ripping you off? also, is this legal?? I really cant believe that these apr's are being offered to people

Comments

  • $17mma
    $17mma Posts: 2,623 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    That is not the worst!I hear that loans from Provident are anything from 100- 150% if not more!!!!!
    MFWB
    Mortgage when started: £232,000
    Current mortgage Sept 2024: £232,000
    Mortgage free day: Sept 2029

    Saving: £12k 2025
  • Astaroth
    Astaroth Posts: 5,444 Forumite
    APR has to also include fees so if there is any form of fee it will massively skew the APR as the APR is worked out on a loan of £1500 so a fee of say £200 will make a massive difference but if the min loan is £100,000 the fee in reallity is tiny.

    They arent illegal as they are up front and the law defines how APR is calculated and that it must be advertised and that it has to state the credit charge on the agreement and how this is calculated is also legislated on.
    All posts made are simply my own opinions and are neither professional advice nor the opinions of my employers
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