Apr 2356%

pontiuspilot

Just saw this advert on TV. Its for quick cash loans and they charge an incredible
2356%. This must be a record and one to steer clear of. The web site is
www quickquid co uk. 'Bout time this was illegal.

_Andy_

zzzzzzzzzzzzzzzzzz

CHR15

LeeSouthEast

If you're stupid enough to hold a 30 day loan for a year you deserve to pay 2,356% APR.

redpete

Small loans + short periods + high risk borrowers = high charges

APR for these is meaningless.

RobertoMoir

This pops up here every now and again. I don't like these kinds of lenders myself but even with my jaundiced eye I have to say you haven't discovered some foul plot to bankrupt poor people or something.

Read these links. They explain what is happening. To understand the bad reception you're getting for asking about it, imagine that you've seen a thread like this just about every week for the past 3 years.

https://forums.moneysavingexpert.com/discussion/comment/27726083#Comment_27726083

https://forums.moneysavingexpert.com/discussion/comment/31785993#Comment_31785993

https://forums.moneysavingexpert.com/discussion/comment/27981897#Comment_27981897

kondormid

While I understand the point a lot of posters in those threads are making "it is a short term loan so therefore APR is not applicable", I do think that you would have to be pretty naive if you thought that this company wasn't intending on making a lot of money from a few small loans.

Just for the record, I have seen one real example where this company charged someone £100 for them to obtain a £200 loan, the APR popped up at over 1500%.

Now, before we all allow the fact it is a short term loan to mist our vision should we not ask ourselves exactly what is going to happen if for some reason a person has difficulty paying back this loan?

I was always under the impression that a loan shark was someone who dealt out short term and relatively small loans to people in the hope that one or two of those people had trouble paying the money back. The idea being that the loan shark could call in the big boys and get as much of that persons belongings as possible.

Is it just me then that can see this company is doing the exact same thing? Are they not just legalised loan sharks using the same exact model of business?

The original replier commented that someone who has trouble paying back the money n a short period deserves everything they have coming to them. I feel this is more than a tad harsh. However you break it down this company is lamping on the charges at a very fast rate. As such it would be very very easy for someone to actually lose control of the debt and their ability to pay.

And yes, of course these companies shouldn't be allowed to charge that APR. There are a lot of vulnerable people out there and not all of them are as quick on the draw as some of the posters on this forum. I am sure we can all probably think of someone that could find themselves in great difficulty if they took up the offer this company is pushing at them. The original replier might think they deserve everything they get for not being as clever as him or her, but I do not. Lets call to ban these monetary thugs and protect those who will fall for these smiling sharks adverts.

Wutang_2

kondormid wrote: »

Now, before we all allow the fact it is a short term loan to mist our vision should we not ask ourselves exactly what is going to happen if for some reason a person has difficulty paying back this loan?

How can they possibly have difficulty paying back?? Its not like a 10 year loan where ones circumstances may alter - this is over a course of days!!!

Why should they not be able to set such rates?

CHR15

kondormid wrote: »

Just for the record, I have seen one real example where this company charged someone £100 for them to obtain a £200 loan, the APR popped up at over 1500%.

Maybe they should set 6% as their interest rate so everyone is happy.
£200 is quite a large sum for these companies for their short term loans.

How long would a business remain profitable of they made a whopping £12 for lending £200??

They have a premises to lease, staff to pay and need the money themselves to lend in the first place.

Bear in mind also, that the people asking for that £200 are only asking them because all the mainstream lenders won't touch them.

A high portion of those £200 borrowers aren't going to repay the £200 let alone the whopping £12 interest they stand to make.

nomoneytoday

CHR15 wrote: »

Maybe they should set 6% as their interest rate so everyone is happy.
£200 is quite a large sum for these companies for their short term loans.

How long would a business remain profitable of they made a whopping £12 for lending £200??

It won't be £12 - it would be about £1/month

voiceofreason

kondormid wrote: »

Lets call to ban these monetary thugs and protect those who will fall for these smiling sharks adverts.

No thanks.