.. ever seen. Just seen this Add on telly:

Online Payday Loans from QuickQuid.co.uk

2356% APR

TX.

 

I think they're just banking on people simply having any understanding of what APR is...

Easy to see how some people can end up owing huge amounts after borrowing only a small sum. To be honest there should be a limit put in place - 2356% APR is just crazy!

 

A lad who i employ buys all his gear from Brighthouse, and he pointed out the APR on that advert to me

I thought Brighthouse was a bit harsh myself, but the advert actually stunned me.bv

 

Yikes... though you can't accuse them of hiding the figures, they're right there under the 'rates & terms' link. Borrow £50 for a couple of months and, if they determine your credit worthiness to be "average" you end up having to pay back a whopping £79.50

That's nearly as depressing as labelling the worst tier available "average" in the first place... are they as bad at basic maths as their customers?

 

They rely on desperate people with little or no credit rating.

Even a loan shark give better rates than these. And if you don't know how to go about getting a loan shark (me included) than these companies will rip your eyeballs out.

 

It = 196% per month so borrow £250 for a month & you'll owe the original £250 + a further £490 ...

TX.

 

Yeah, it seems high but this just shows that actually APR's are a pretty crap way of measuring a loan. These are short term loans for a fixed fee i.e. to borrow £50 for a month will cost you a tenner. It's not like they're lending people £25,000 over 5 years at those rates.

If you borrowed £50 of your mate and bought him a pint as a thanks, the APR rate of that would be about 500%

 

Noticed that advert today.

There's nothing like ripping off the ones with least money to start with.

If someone borrowed £500 and needed 2-3 months to pay it back they'd be in for a nasty shock.

 

The purpose of these loans is to borrow small amounts over very short periods. For example, £500 paid back in less than a month might cost £650 to repay. Any lender asking for £150 for admin and setting up fees plus a little interest on such a provision isn't robbing anyone blind IMHO. If however you go a few pounds overdrawn for just one day, the cumulative cost of the letters, penalties and interest payments from many high street banks could equate to many thousands of percent. I once calculated that such a scenario with one bank equated to 147359739444%

 

Best to keep away then.

Les