Typical 2356% APR

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]

Originally Posted by EssexDave

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]

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

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]

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 .

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...??

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]

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

[Dave20046]

Originally Posted by EssexDave

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]

Originally Posted by Stu

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.