Scary Interest Rate

dursley92man

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?

pramsay13

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

"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

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.