Highest APRs ...
.. ever seen. Just seen this Add on telly:
Online Payday Loans from QuickQuid.co.uk 2356% APR :cuckoo: 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! :freak3: |
A lad who i employ buys all his gear from Brighthouse, and he pointed out the APR on that advert to me :eek:
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 :eek:
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% :eek:
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Best to keep away then.
Les |
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