720% APR - Is this the most expensive loan ever?

pete_the_postman

Hi All,

I have have a credit builder account, which basically means that I pay £4.95 per month and the payments gets recorded on my credit history file.

Recently I received an email from the company advising me that I had pre-qualified for an iAdvance loan of up to £100.

However, I couldn't believe my eyes when I saw at the bottom of the email that the APR was a whopping 720%.

Is this a new record in rip-offs?

Cheers,

Pete

[Deleted User]

Over what period?

APRs are uselessly misleading for short term loans. There's rates of over 4000% out there, but it doesn't make them rip offs.

paulmcerlean

Misleading. A £100 loan would not be paid back over a year, especially with the name 'advance', so APR in this instance, as it is with payday loans, an irrelevance as a figure.

whatyadoinsucka

look at quickquid far higher rates and i'm not sure how the apr is the same if you repay over 1 or 2 months