Fabioso

I saw an advert on cable tv today and when I saw the APR I thought it was a mistake. It seems I was wrong...........

Payday Loans: Quick Payday loans @ www.QuickQuid.co.uk

Depending on your financial status you could be paying 2222% APR........



Aren't these things regulated by the FSA or someone ?

I think I'll stick with my 0% credit card.......

subaruturbo_18

Yes it is very high, but considering that you would only be borrowing low amounts of money its about a tenner per every 50 borrowed.

what would scooby do

With the majority of people unable to budget or live within their means then these folk are just there to mop up the real desperadoes.

I was offered an M&S credit card last week - I simply replied "Why when I can afford to buy food with my own money ?? "

Didn't intend to sound smug if it came across that way !

konceppt

just desperation and a vicious cycle i suppose

Dedrater

Business is business, if people are stupid enough to get a loan from them, then let them crack on.

jjones

yes, because m+s credit cards can only be used to purchase food!

what would scooby do

.. and at 31.8 times the Bank Of England interest rate

Lisawrx

iTrader: (1)

Basically it's really aimed at people who can't get any other credit.

People in a decent financial situation would either just use their money as they could afford, or use credit cards as a short term measure (and due to being financially sensible, they'd likely have no problem getting a credit card or other form of credit).

If people are desperate enough, they'll go for something like this.

hodgy0_2

its a fairly universal rule that the richer you are the cheaper (pro rata) life gets

and vice versa

gallois

true. a weeks shop/fuel/insurance costs the same for someone on minimum wage as it does for a someone earning a million a week. the poor are perpetually poor, and the rich are always rich. Capitalism rules

Dedrater

All them goods would of been bought with the interest made from the bank though?

jjones

10 months 0% interest....

hodgy0_2

it is worse/better than that -- the poor pay proportionally more for things like energy/telecommunications/food (think, pre-pay and pay as you go etc no access to the big super markets)

and as the OP states, money

on the other hand I doubt Eric Clapton pays much for his guitars

what would scooby do

..and probably just over 0% of customers have zero balance after 10 months IMHO

StickyMicky

The numbers are meaningless as the typical customer can not count.

StickyMicky

I agree, apart from the shopping


Car insurance, poor people pay in installments and get raped by mega interest.
Household goods, poor people pay in installments and get raped by mega interest.
Buying a car, poor people pay in installments and get raped by mega interest.
etc etc etc

Lee247

Surely that can't be legal. It's just preying on the vulnerbale

Leslie

Must be like that, taking advantage of people in a serious financial situation. Real nasty "moneylender" types in the old meaning of the word!

Les

SirFozzalot

That's what worries me about it though!!!

What sort of financial situation do you have to be in to have to borrow £50 from a "loan shark" (effectively).

If you haven't got the cash flow to have access to £50 then the chances are at the end of the month you aren't going to have the £60 (or whatever it is) to pay back......with interest at over 2000% that £50 will rise very quickly, with the borrower having no means of ever paying it back!!!

GlesgaKiss

Are these loans not just really short-term anyway, meaning that the figure is really meaningless compared to longer-term loans with significantly lower APRs?

SirFozzalot

"Supposed" to be. What happens if you don't have the cash at the end of the month to pay it back?

If you are desperate enough to have to borrow small amounts like that, I reckon there is a real chance that people could get in to a bit of trouble.

Not everyone, but I reckon some will.

GlesgaKiss

True, but that would be down to the individual... lack of discipline or whatever. If you can't pay the loan back then don't take it out in the first place.

Unfortunately a lot of people don't have the self control to plan ahead and stick to it, which is why we're in this mess in the first place. Just basic human nature... wanting more than you can actually have. That's everyone from the bankers down to joe public. Which is why this won't be the last credit crunch! These cycles have been going on for a long time and will continue to go on as long as humans are making the decisions.

SirFozzalot

Of course, but that's my point. A lot of people that are in a situation where they are so broke they need to "get a loan" for a small sum like £50 are unlikely to be the type of person that plans ahead and has self control otherwise they wouldn't need to borrow the money in the first place.

Leslie

It seems to me to be down to the ease of using a credit card and the encouragement of the government to people to borrow to the hilt!

Les

austinwrx

well everytime I walk past Brighthouse, the quality of the individuals inside speak bucket loads about their 30 % apr.

tiz still true: the poorer you are, the bigger telly you have.