2356% apr!!

mancini601

I have just seen a part of an advert on the TV for loans where the APR = 2356%!

Can't remember the name. It was 'quid' something or other.

I've heard of daylight robbery but this is legalised mugging.

Wutang_2

mancini601 wrote: »

I have just seen a part of an advert on the TV for loans where the APR = 2356%!

Can't remember the name. It was 'quid' something or other.

I've heard of daylight robbery but this is legalised mugging.

But surely if you don't like the rate or the terms you don't take it out?

ILW

mancini601 wrote: »

I have just seen a part of an advert on the TV for loans where the APR = 2356%!

Can't remember the name. It was 'quid' something or other.

I've heard of daylight robbery but this is legalised mugging.

Just shows how a little knowledge can be a dangerous thing.

mancini601

Wutang wrote: »

But surely if you don't like the rate or the terms you don't take it out?

True, very true. Fortunately I do not need a loan. It was just the shock at seeing such a high apr on an advert.

ampafc

mancini601 wrote: »

I have just seen a part of an advert on the TV for loans where the APR = 2356%!

Can't remember the name. It was 'quid' something or other.

I've heard of daylight robbery but this is legalised mugging.

These are for short-term loans, designed to be paid back within one month. So the APR shouldn't be relevant, but sometimes it is, as it often takes way more than a month to pay these back. In reality, I guess the ineterst you pay over the month is about 25-30%.

CLAPTON

mancini601 wrote: »

True, very true. Fortunately I do not need a loan. It was just the shock at seeing such a high apr on an advert.

just out of interest, what would you consider a fair charge to say borrow £100 per 1 month bearing in mind the cost of staff, IT systems, risk of default etc.

ceh209

ampafc wrote: »

These are for short-term loans, designed to be paid back within one month. So the APR shouldn't be relevant, but sometimes it is, as it often takes way more than a month to pay these back. In reality, I guess the ineterst you pay over the month is about 25-30%.

That's how I've seen these sorts of companies advertise it - they basically say "we have to tell you the apr, but don't listen to it cuz it's not really relevant"

I saw something like 'borrow £100, pay us £9 for every week you keep it' i.e. £109 after one week, £118 after 2...

usedandabused

ceh209 wrote: »

That's how I've seen these sorts of companies advertise it - they basically say "we have to tell you the apr, but don't listen to it cuz it's not really relevant"

I saw something like 'borrow £100, pay us £9 for every week you keep it' i.e. £109 after one week, £118 after 2...

what if you can't repay it within the month?
:eek:

redpete

If I borrow £10 from a friend on a Friday night for a taxi then pay him back the next week and buy him a pint as thanks this is 1300% APR. Should I be outraged?

usedandabused

redpete wrote: »

If I borrow £10 from a friend on a Friday night for a taxi then pay him back the next week and buy him a pint as thanks this is 1300% APR. Should I be outraged?

haha pull the other one, this is not comparable, firstly said loan company is no friend, also I doubt friend will expect astronomical interest, and report you to the credit reference agency aswell as issue you with a default:rotfl::rotfl::rotfl:

Wutang_2

redpete wrote: »

If I borrow £10 from a friend on a Friday night for a taxi then pay him back the next week and buy him a pint as thanks this is 1300% APR. Should I be outraged?

Don't pay your mate back. If you look into it, lending from one friend to another is actually unenforcable.