OMG! Quickquid.co.uk

Juney

I don't believe what I've just seen on TV :shocked:

Get a quick loan if you need money quickly - but wait for it............. 2278% APR - that seems totally immoral to me. With so many people losing jobs at the moment, and people short of money, this is no better than a loan shark! They promote the fact that you can borrow it this month, and pay it back next month..... but you wouldn't be able to afford to. How is this legal? :mad: I am desperately sorry for anyone who falls for this one

tbourner

That's been around for some time now, seems to be a big business as well as loads of companies are getting in on the action.

TBH it's not really that different from pawn shops and places like Cash Converters, like you say it's legal loan sharking, but if there's demand.......

iamana1ias

Overdraft fees often work out as a higher APR equivalent!

telboyo

wonga charge even more.
I don't know about the OD being more expensive mine is 0% for first 250 the 15.9% for anything above. Per Annum

BugsyBrowne

Apples2 has already explained all of this on a thread the other week explaining that these APR's are based over the year and these are short term loans only, you take one of these loans out and pay back on time within a week it probably work out cheaper than an overdraft that cost you over a pound a day interest which some banks can charge you...

ryanm198

telboyo wrote: »

wonga charge even more.
I don't know about the OD being more expensive mine is 0% for first 250 the 15.9% for anything above. Per Annum

The above poster is talking about overdraft fees. When a % is charged per day for being overdrawn.

These are short term lenders not based over a yearly loan, they need to charge that much to make any money. If they were to charge the 'standard' credit card rate then they'd struggle to make £1 for a £100 week advance.

Like others have said its used as a short term loan so APR isn't really relevant cause you'll never have the loan over a year, people get into trouble when they miss the payments. Have a look further down on the forum list theres another thread about it with some good explanations.

redpete

Juney wrote: »

I don't believe what I've just seen on TV :shocked:... 2278% APR ... I am desperately sorry for anyone who falls for this one

APR is not useful for low value short-term loans.

As others have said you might calculate the equivalent APR if you incur overdraft fees for going over your limit by £1 for 1 day - £12 fee for 'borrowing' £1 for 1 day could be claimed to be 438000% but this would never be what anyone pays.

You did notice it clearly stated on the advert - this should act as a warning to people tempted by this that it will be very expensive if they don't pay it back quickly.

tbourner

"Short term advantage should not be used a long term financial solution"

Enfieldian

Excellent first post.

Very helpful.

You are a day late though, these posts normally appear on a Wednesday....

BackOnTrack

telboyo wrote: »

wonga charge even more.
I don't know about the OD being more expensive mine is 0% for first 250 the 15.9% for anything above. Per Annum

I'm guessing the overdraft fees referred to should be unauthorised overdraft fees.

Hax

Juney wrote: »

I don't believe what I've just seen on TV :shocked:

Get a quick loan if you need money quickly - but wait for it............. 2278% APR - that seems totally immoral to me. With so many people losing jobs at the moment, and people short of money, this is no better than a loan shark! They promote the fact that you can borrow it this month, and pay it back next month..... but you wouldn't be able to afford to. How is this legal? :mad: I am desperately sorry for anyone who falls for this one

You're a bit late for the Wednesday "OMG look at the rates the payday loan people are charging!" thread... I wish people would search before making sensationalist posts that based on their misconception of how payday loans and APR work.

Payday loans when used properly can be beneficial.

The APR is meaningless when using a loan of this type. Think of it this way: To borrow £100 for a week will cost you around £20. If that stops bank charges for bounced direct debits and charges from other companies for non-payment, then it can work out an awful lot cheaper - so long as you pay it back in full and don't rely on it as an extension to your "normal" income.

Say for example, you had two direct debits to come out of your bank account - minimum payments for credit cards and both for £50. You've miscalculated, it's a week before you get paid and you only have £5 left in your account. Both direct debits get bounced - that's £24 in charges from your bank - plus a possible £24 in charges from your credit card companies. Not to mention the "black mark" with the CC companies (and maybe on your credit report too!).

Instead, you could have borrowed £100 for a week and it would have cost you £20 and no black marks.