Highest Interest Poll

Poll Title: Poll Started 10 Oct: If you were to borrow £100 over a week, above what level would you consider the interest to be extortionate?

A. 5% APR
B. 25% APR
C. 50% APR
D. 100% APR
E. 250% APR
F. 500% APR
G. 750% APR
H. 1250% APR
I. 2500% APR

Vote here or click reply to discuss this poll :)
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Replies

  • It looks like some companies are way up this list

    http://www.myprovident.co.uk/products/LoanCalculator.aspx

    Choose cash loan

    enter £500

    choose 55 weeks

    change to 23 weeks

    Now thats what I call interest
  • good grief! Who would pay that much? and who voted for 2500%? Thing is, interest rates won't come down unless everybody agree not to pay the high rates. Lets face it that's nigh on impossible, someone will always need the money.
  • jonboy31jonboy31 Forumite
    172 Posts
    I chose 750% as 500% would mean paying back £110 from your loan of £100 - fair in my opinion for such a short term (and no doubt much needed) loan.
    I don't think people have read the question properly IMO, quite a lot of people seem to think that 10 pence interest on a £100 loan is extortionate!!!

    John
  • Don't mean to be picky guys but your posts might influence this poll coz it certainly changed my answer! :o:p

    I didn't even think to work out what the interest would be (slaps wrist) but though anything above 25% was extortionate (sp). Now after reading Al Macs post I would agree with him! :rolleyes:
  • zx2011zx2011 Forumite
    309 Posts
    Part of the Furniture Combo Breaker
    I saw this yesterday in Croydon.

    Borrow £1000 for £99 a month for 18 months. Total payments £1782. APR 123%
  • Having been in the Home Collected credit trade for many years, I can assure you that Provident's APR is commonplace! I used to work for Stanlor Finance, a part of Wilson Tupholme PLC, and a 100.00 loan was paid back at 10.00 per week for 14 weeks. The APR was a staggering 1024%.
  • Not sure if anyone has come across these people but there was a link to them on an email when I enquired about some car spares recently.

    APR advertised as 1355% based on a 30 day loan

    Check it out!


    http://www.247spares.co.uk/paydayloans/
  • This is clearly a bad question, unless it's entirely deliberate to suggest that people don't understand APR rates.

    People are not considering that this is an ANNUAL percentage rate which takes effect over one WEEK.

    Therefore I would personally consider such a short term loan to be extortionate once it went over £120 in repayment. My calculation therefore suggests £1040 over a year (20% x 52) and therefore 1040% APR.

    Am I correct or equally missing the point?
  • Al_Mac wrote:
    It was £100 for a week!

    If you work out even the highest APR, that is less than £10 for a week. The lowest APR is pence.

    The company would not do it for pence and paying a few quid, doesn't seem unreasonable to me:D


    The highest APR is 2500%. This equates to £2500 interest per year. So 2500 / 52 is around £48 for a weeks interest. I'd call that extortionate myself. I'll stick with 750% as my answer (nearly £15 interest for the week.)

    John
  • MSE_MartinMSE_Martin MoneySaving Expert
    8.3K Posts
    Forumite
    Don't mean to be picky guys but your posts might influence this poll coz it certainly changed my answer! :o:p

    I didn't even think to work out what the interest would be (slaps wrist) but though anything above 25% was extortionate (sp). Now after reading Al Macs post I would agree with him! :rolleyes:

    Quite right - so sssh (and you may want to take a look at the results of a similar but different poll a couple of weeks ago - and see where I'm going with this) but don't look until AFTER you've voted!

    Martin
    Martin Lewis, Money Saving Expert.
    Please note, answers don't constitute financial advice, it is based on generalised journalistic research. Always ensure any decision is made with regards to your own individual circumstance.
    Don't miss out on urgent MoneySaving, get my weekly e-mail at www.moneysavingexpert.com/tips.
    Debt-Free Wannabee Official Nerd Club: (Honorary) Members number 000
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