Poundstopocket - TV advert

googler

Just saw a TV ad for this mob. The blurb at the end promises a 'representative APR' of 399% (!?!!??!)

I plugged this into the Guardian's APR calculator, and that reckons that borrowing £100 from them, repaying over 12 mths, leads to 12 payments of £34.35.

Total repayment = 12 * 34.35 = £412.20 ......

bengal-stripe

Now you know where not to get a loan.

bsms1147

You wouldn't repay it back over a year, which is where APR falls down as a tool in its own right. It's also why Wonga et al. have representative APRs in the 1000%'s.

For example, if you wanted to borrow £100, but had to pay £120 back a week later, that doesn't sound too bad, does it?

However that works out at approximately 1,344,997% APR.

PeacefulWaters

googler wrote: »

Just saw a TV ad for this mob. The blurb at the end promises a 'representative APR' of 399% (!?!!??!)

I plugged this into the Guardian's APR calculator, and that reckons that borrowing £100 from them, repaying over 12 mths, leads to 12 payments of £34.35.

Total repayment = 12 * 34.35 = £412.20 ......

I think their calculator is calculating differently to the firm's own web site which returns lower payments. It's slightly odd.

bsms1147 wrote: »

You wouldn't repay it back over a year, which is where APR falls down as a tool in its own right. It's also why Wonga et al. have representative APRs in the 1000%'s.

For example, if you wanted to borrow £100, but had to pay £120 back a week later, that doesn't sound too bad, does it?

However that works out at approximately 1,344,997% APR.

The lender in question specialises in loans repaid over 6-12 month term.