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Scary Interest Rate

Just seen an advert on TV for an instant loan company with an advertised interest rate APR of 99.9%.  
Thought I had miss-heard so went back and played it again and sure enough it really is 99.9%.
Is that even legal?

Comments

  • pramsay13
    pramsay13 Posts: 2,062 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Yes, the FCA sets the cost cap at 100% of the amount borrowed, so assuming the loan is for one year and there are no other charges it is legal, but only just.
  • superbigal
    superbigal Posts: 611 Forumite
    Part of the Furniture 500 Posts
    "Every Day"  is a School Day   Looks like they are offering over one year but i assume the APR then improves.  To be avoided.
  • CliveOfIndia
    CliveOfIndia Posts: 1,969 Forumite
    1,000 Posts First Anniversary Name Dropper
    These sort of companies are really nothing more than legalised loan sharks.
    Still, the interest rate is better than that charged by The Kneecap Brothers, and if you default at least you won't find yourself forming part of the bridge support on the next motorway being built near you.
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