Typical 2356% APR

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.

Originally Posted by Well Oiled

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]

<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:

[hindle8907]

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.

Originally Posted by the_lone_wolf

<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

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]

Originally Posted by Alpinestarhero

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

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

[Spiderman]

Originally Posted by the_lone_wolf

<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:

Well played sir, that indeed is the point here. I'm sure the ad even says that its designed to be a short term solution and not a long term loan.

[DarrenSV650S]

Originally Posted by the_lone_wolf

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