TV advert offers 2356.00% APR !!!

zppp

ajones28 wrote: »

I don't know about the legalities around this but if I was you I really wouldn't risk it. Also, if the paperwork does not match the bike, does this mean that the bike could be classed as stolen? I would avoid it like the plague and take your business elsewhere. :cool:

You've posted on the wrong thread

You need to put this on the following thread;
https://forums.moneysavingexpert.com/discussion/2558365

:cool:

redpete

halifax71 wrote: »

Have you ever borrowed £10 off your mate for a week and then bought him a beer as a thanks.

The £2 (ish) for the beer equates to over 1,000,000% APR

Hey, that's my line, and it's 1040%. ;-)

Mogues_1991

The reason the APR is so high is because your probly borrowing for a month, Therefore you cannot work it out by APR (Over a year), But the law regulates that they have to show the APR anyways

roythebus

Maybe we should have a law like most EU countires have, limiting ANY interest rates to about 20%.

redpete

roythebus wrote: »

Maybe we should have a law like most EU countires have, limiting ANY interest rates to about 20%.

Why? If there was such a law then the short-rterm lenders would just include fees or charges to cover the risk & profit, which would then be included in the APR calculation (like the law says it has to) and come up with the answer 2356.00%

Wutang_2

roythebus wrote: »

Maybe we should have a law like most EU countires have, limiting ANY interest rates to about 20%.

What a smashing idea! It would put the payday loan companies out of business immediately but if thats your plan then god bless.

moonrakerz

I feel like that I've wandered into a comments column in the Daily Mail !

Here's a good one for everyone, form yesterday's Herald Scotland:-

"Someone going into unplanned overdraft by £85 for 10 days would therefore be landed with a total fee of £165. But if the same person went to a payday loan company and borrowed £85 for a month it would cost them on average just £15, meaning Lloyds is effectively charging 11 times more."

Don't forget that Lloyds has been propped up with zillions of your money - and you were never asked if you were happy with this largesse !

halifax71

redpete wrote: »

Hey, that's my line, and it's 1040%. ;-)

How do you get that figure? Have you just done 20% (i.e. £2 out of £10) multiplied by 52? In that case you're wrong.

I stand by my statement by the way. In fact i reckon it's 1.3m% APR.

Sasahara

halifax71 wrote: »

How do you get that figure? Have you just done 20% (i.e. £2 out of £10) multiplied by 52? In that case you're wrong.

I stand by my statement by the way. In fact i reckon it's 1.3m% APR.

It's only 1.3m% if you charge interest on interest and make no payments in a year.

DGJsaver

halifax71 wrote: »

Have you ever borrowed £10 off your mate for a week and then bought him a beer as a thanks.

The £2 (ish) for the beer equates to over 1,000,000% APR

LOL :beer: