Typical 2356% APR [Archive] - SV650.org - SV650 & Gladius 650 Forum

Alpinestarhero

23-12-09, 11:37 AM

Ze interezt rates are not for negotiashun. You Vill Take Out Zee Loan And Pay Back an Absurd amount of money to Zee Furher

:D

na, it is astonishing and everytime someone reads it, I understand they feel the need to bring it up, its crazy!

DarrenSV650S

23-12-09, 11:38 AM

You just saw this advert on dave aswell ey?

Oh and i believe this topic has a certain German feel to it :rolleyes:
yeh lol

whoops sorry about the hitler thread

speedplay

23-12-09, 11:39 AM

I cant believe that people would be desperate enough to sign up for something like that.

GeneticBubble

23-12-09, 11:43 AM

yeh lol

Bit of dragons den in the morning while waiting for another top gear repeat. aww thats the life :thumbsup:

but i think quick quid are insulting out intelligence and im out.

5854

DarrenSV650S

23-12-09, 11:52 AM

Bit of dragons den in the morning while waiting for another top gear repeat. aww thats the life :thumbsup:

but i think quick quid are insulting out intelligence and im out.

5854
Yeh I didn't really notice the american episode of top gear had ended then couldn't be bothered turning over. Have you noticed that the dragons have always been "listening intently" ?

Dave20046

23-12-09, 01:03 PM

They've got a free helpline, I was tempted to ring up and detail to the person on the other end of the phone exactly why they should be put down...but rolling back over and falling asleep seemed slightly more attractive.

yorkie_chris

23-12-09, 01:10 PM

I cant believe that people would be desperate enough or f***ing dense to sign up for something like that.

Corrected

Well Oiled

23-12-09, 01:17 PM

I don't think it's a rip off, especially when you consider that after your 12th loan at typical 2356% APR they give you a 20% discount. That must drop the APR well below 2000%. What a bargain.

Alpinestarhero

23-12-09, 01:22 PM

I don't think it's a rip off, especially when you consider that after your 12th loan at typical 2356% APR they give you a 20% discount. That must drop the APR well below 2000%. What a bargain.

hmm, it now sounds quite attractive

i'll take out lots of small loans from then then and buy that RC45 i've always wanted

the_lone_wolf

23-12-09, 02:16 PM

<Devil's Advocate>

It's misleading to quote an *Annual* %age rate on a loan that's intended to be for a few weeks only

They quote it because it's required of them by law, not because anybody would borrow from them like it was a personal loan from their bank

If hotels or hire car firms had to quote their prices at an annual rate they'd appear obscene as well

</Devil's Advocate>

ETA:

http://www.wonga.com/money/themes/wonga_beta/images/Wonga_APRcomic.jpg

hindle8907

23-12-09, 02:20 PM

lol is it some kind of wind up even i wouldnt take that and im your fine example of a finance/load idiot .Typical 2356% APR. u gota be one dumb mother trucker to take that agreement out.

Alpinestarhero

23-12-09, 02:24 PM

<Devil's Advocate>

It's misleading to quote an *Annual* %age rate on a loan that's intended to be for a few weeks only

They quote it because it's required of them by law, not because anybody would borrow from them like it was a personal loan from their bank

If hotels or hire car firms had to quote their prices at an annual rate they'd appear obscene as well

</Devil's Advocate>

good point

so over a few weeks, what would the APR be? I guess the loan is intended as an advance before payday...you know, if your washing machine blows up a week before payday

bris

23-12-09, 02:33 PM

Yes the APR is annual but the loan is only meant for a 4 week period. To borrow £320 you would have to pay back £400 in £100 weekly instalments, making it a £80 fee if all goes well. You do however get hammered if you don't stick to the agreemnt and with penalty interest fees etc the annual percentage rate would apply. Still a rip off but it would be attractive to some people at this time of the year.

the_lone_wolf

23-12-09, 02:34 PM

good point

so over a few weeks, what would the APR be? I guess the loan is intended as an advance before payday...you know, if your washing machine blows up a week before payday

2356%APR translates to ~30% monthly rate

So borrow £100 on the 1st, pay back £130 on the 31st

Still expensive, but if you're desperate not to default on other payments it may be your only option

kwak zzr

23-12-09, 05:51 PM

yea i posted on that a few months ago its so funny! like anyone would advertizing an APR like that lol

Spiderman

23-12-09, 05:56 PM

DarrenSV650S

23-12-09, 06:10 PM

2356%APR translates to ~30% monthly rate

So borrow £100 on the 1st, pay back £130 on the 31st

Still expensive, but if you're desperate not to default on other payments it may be your only option
Its not actually that bad when you put it like that. It's just the 2356% that looks completely insane

EssexDave

24-12-09, 01:35 AM

The whole point is they are abusing people who need the funds.

It's like all those other "payday" loans that you are meant to have for a couple of days/weeks to pay for the unexpected - eg get a puncture and you need a tyre for a vehicle you use to travel to and from work.

If you don't have access to other funds, it suddenly appears very useful to borrow £100 till you get paid again.

Of course, as said above, it is a fools' game and even over a short period, it is an insane amount of interest to be paying back.

the_lone_wolf

24-12-09, 10:17 AM

The whole point is they are abusing people who need the funds.

In the same way mortgage companies abuse people who need a house?

Or the same way finance companies abuse people who need a more expensive car than the one they can afford?

Their rates and terms are clearly set out, with no attempt to hide the costs, it costs money to run a website, pay people to handle the calls, pay people to carry out the administration associated with loaning money, pay for the taxes, pay for credit checks, advertising, to account for a percentage of loans that'll go bad, all of that has to come out of the funds they charge customers

Of course it's an expensive way of borrowing, that's the point, it's intended to be a short term loan only, using it to keep debt hanging for months would be like using a credit card to keep thousands in debt for years. As above, used properly it could form part of a decent credit strategy, the same as a personal loan or any manner of financial products, it's only the misleading application of an APR that makes it seem like it's unfair...

hindle8907

24-12-09, 10:46 AM

ask them for a job wolfie :p lol ull be mannager before you know it :D

EssexDave

24-12-09, 11:13 AM

I work for the insolvency service, and as such I see people who take out these type of loans and expect money to just appear to pay it off.

People use credit to pay off credit all the time, but many don't understand what they are getting themselves into. All they hear is, I can give you £100 today.

There is one company around my way, who will knock on people's doors on housing estate and offer them a loan, then and there. They say repayments are whatever you can afford and they will be round next week to start collecting. They are operating within the law (as there was a thing about them recently) but they do charge a large amount of apr. I find it odd anyone would borrow money from someone who knocks on their door.

hindle8907

24-12-09, 11:50 AM

its like these bright house stores lol u gta be mad to go into one of them get a tv that costs 700 quid and pay back 3000 grand back over a few years .
if you ask me people who fall for these rip off scams deserve it for being thick .

Magnum

24-12-09, 02:59 PM

Is it just me or is this really not that bad: £50.00 - £79.50 - 2222.46%

Borrow 50, then the total amount to pay back is written as 79.50...??

EssexDave

24-12-09, 03:08 PM

It depends how long you obviously take out the agreement for, I'm assuming they only allow you to, in principle, take a short term agreement. Obviously, if you can't pay it, then obviously you pay interest for longer plus any charges for missed payments.

This may be an unfair generalistion, but generally people who would use these sorts of companies, are the ones who are more desperate for the money. The problem with that is, the person is already struggling with their finances before they do this.

The problem comes when people need to do this several times a month, eg they take a few from different companies.

Stu

24-12-09, 04:15 PM

All those criticising - just be thankful you don't need to make use of these.

Well said TLW

I wonder what a $35* bank charge for being a few quid o/d for a day or two would equate to as an APR

*sorry I'm not in the UK :p

Dave20046

24-12-09, 05:15 PM

People use credit to pay off credit all the time, but many don't understand what they are getting themselves into. All they hear is, I can give you £100 today..
There are some brain dead ****s in this country.

hindle8907

24-12-09, 05:27 PM

All those criticising - just be thankful you don't need to make use of these.

why should i be thankful ? becuase i dont get my self into situations where i have to take out a 100000000% APR loan ..
yeah ok .
My dads out of work at the moment has been for nearly a year and my mum and dad are struggling like hell.(well he has juststarted a part time job in asda which i respect him for as he has a trade and shouldnt be pulling trollies around)
But they wont resort to somthing like that in the long run they know its only going to make the situation worse and into more debt its just comon sence.

andywilson460

24-12-09, 07:23 PM

I've just worked out with that APR it's 6.4% per day.

So - for example - If I borrowed £1500 to cover the mortgage, bills, transport etc for 30 days, by the end of the loan I would owe QuickCash £2880. That's really not going to help anyone in financial problems other than QuickCash.

Looking at the interest rates it would be incredibly hard for anyone to actually afford to pay back these loans if they were that desperate.

Awful thing at this time of year.

the_lone_wolf

24-12-09, 07:40 PM

I've just worked out with that APR it's 6.4% per day.

http://jamie-online.com/random-jamz/wp-content/uploads/2009/06/facepalm.jpg

sinbad

24-12-09, 08:14 PM

I've just worked out with that APR it's 6.4% per day.

So what, 64p on a £10 loan per day, then 6.4% of £10.64 for the next?
The actual annual APR on a loan like that would be in the millions.

You don't work out APR "per day" by dividing by 365. (hence facepalm) :)

speedplay

24-12-09, 08:20 PM

You don't work out APR "per day" by dividing by 365. (hence facepalm) :)

Add to this, the clue to APR is that its annual percentage of rate (http://en.wikipedia.org/wiki/Annual_percentage_rate).

I think the clue is in the name ;)

andywilson460

24-12-09, 08:32 PM

True - but clearly there will be a charge for a month loan - so what is the total repayment amount after 1 calendar month on that rate?

the_lone_wolf

24-12-09, 08:38 PM

True - but clearly there will be a charge for a month loan - so what is the total repayment amount after 1 calendar month on that rate?
The numbers are posted on their own website if you look

After a period of one month you'll pay back 20-29.5% on top of the loan amount...